News from Bulgaria (96-06-03)

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From: Embassy of Bulgaria <bulgaria@access1.digex.net>

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

3 June, 1996

CONTENTS

[01] PETER STOYANOV (UDF) WINS PRESIDENTIAL PRIMARY

[02] BULGARIA - CENTRAL EUROPEAN INITIATIVE

[03] BULGARIA-CEI: BULGARIAN FOREIGN MINISTER ADDRESS

[04] FOREIGN MINISTER PIRINSKI ON NEW DATE OF BALKAN FOREIGN MINISTERS' MEETING

[05] BULGARIA, E.U. TO DEEPEN RELATIONS

[06] PM VIDENOV: LANGUAGE ISSUE SHOULD NOT SPOIL RELATIONS WITH MACEDONIA

[07] BULGARIA TO RECEIVE 150 MILLION US DOLLARS FROM THE WORLD BANK

[08] BUDGET WILL BE UPDATED, FINANCE MINISTER SAYS

[09] BANKRUPTCY PROCEEDINGS INITIATED AGAINST TWO BANKS

[10] BREAD CRISIS

[11] PARLIAMENT AMENDS BULGARIAN CITIZENSHIP ACT

[12] STRICT CHECKS BLOCK CUSTOMHOUSES

[13] P.M. VIDENOV ON SECOND N-PLANT IN BULGARIA

[14] BULGARIA LEADER IN ANTIPIRACY LAW

[15] SIMEON II'S VISIT

[16] JUNE 2 - THE DAY OF BOTEV AND THE FALLEN FOR BULGARIA'S FREEDOM

[01] PETER STOYANOV (UDF) WINS PRESIDENTIAL PRIMARY

The correlation of votes cast for Peter Stoyanov and Zhelyu Zhelev is around 2.5:1, according to unofficial data published by the UDF. Zhelyu Zhelev's campaign team has not announced the results of its parallel count yet. The official results become known tomorrow and will be announced by the Political Council of the opposition.

Over 650,000 people voted in the primary elections. The turnout exceeded the opposition's expectations two-fold. Almost 200,000 people voted in one million Sofia. The poll was surprisingly poor in Kurdjali (Southeastern Bulgaria). "The people passed by the polls hurrying to the bakeries," the "Novinar" daily cites Ahmed Yussein, a local leader of the ethnic Turks' Movement for Rights and Freedoms (MRF), as saying. The turnout was also low in the villages from which incumbent President Zhelev expected most of the votes in his support.

The primary elections proceeded smoothly without incidents and voting irregularities. Several minor complaints were filed in the small towns but were settled locally by the electoral commissions. President Zhelev said yesterday that he would respect the result of the primaries. Nonetheless there are fears in the press that some of the formations supporting him may contest the results.

The expectations of the Socialist party that the opposition will fail in organizing the primary were not justified, UDF leader Ivan Kostov said late last night. He said the UDF was pleased with the high turnout. Kostov also said that the high turnout in the primary will develop into strong public support for the no-confidence in the government vote which the UDF will move in Parliament next week. "On national scale the results of the preliminaries amount to a no-confidence vote in the left- wing, the leaders of the MRF and the Democratic Party - Ahmed Dogan and Stefan Savov, said yesterday.

[02] BULGARIA - CENTRAL EUROPEAN INITIATIVE

[03] BULGARIA-CEI: BULGARIAN FOREIGN MINISTER ADDRESS

Foreign Minister Pirinski said Bulgaria views the CEI as a form of political dialogue and an important forum for maintaining European integration processes within the context of structured dialogue with the EU-member states. Pirinski stressed the economic dimensions of the CEI and possibilities for Bulgaria to take an active part in them.

Today the Bulgarian foreign minister held bilateral meetings with his Balkan counterparts. He informed them of the preparations of the meeting in Sofia and of this country's striving to set a date acceptable to all participants by the end of June.

"All confirmed their positive attitude and interest in the meeting. The problem is to set a date and provide an organization acceptable to all participants so as to make the meeting constructive," Foreign Minister Pirinski said. As regards the forthcoming meeting of the Council of NATO and the Northatlantic Cooperation Council in Berlin on June 3 and 4, Foreign Minister Pirinski reiterated Bulgaria's readiness for and interest in intensive dialogue with the alliance under the "16 plus 1" formula.

The meeting of the foreign ministers of the CEI ended with the adoption of a final document which, among other things, expressed support for the decision to hold the meeting of the transport ministers of the CEI and BSEC in Sofia this November.

[04] FOREIGN MINISTER PIRINSKI ON NEW DATE OF BALKAN FOREIGN MINISTERS' MEETING

Pirinski had meetings with the foreign ministers of Croatia, Bosnia and Hercegovina, Albania, Macedonia and Romania. The foreign ministers agreed that it is necessary for the countries of the region to come out with proposals for promoting regional cooperation, the Bulgarian foreign minister said. Pirinski informed his counterparts that Bulgaria wishes the meeting to be representative and that some of the invited countries will not be able to attend the meeting if it is held on June 8 and 9. "We are therefore trying to coordinate a date which would be convenient to all," Pirinski told journalists.

Bulgaria's full membership in the CEI reveals good foreign political prospects, Pirinski said. Bulgaria's stand for regional cooperation was well received at the forum, Pirinski claims. Statements by the delegation of Italy, which currently holds the rotating presidency of the EU, and representatives of the European Commission expressed support for the initiative to hold a meeting of the foreign ministers of Southeastern Europe in Sofia, Pirinski said. The Bulgarian delegation confirmed this country's wish to take part in the entire spectrum of activities in the postwar reconstruction of Bosnia and Hercegovina, Pirinski also said.

[05] BULGARIA, E.U. TO DEEPEN RELATIONS

Each country's application for full membership will be considered by the EU on a case-by-case basis, Mr Burghard said. An objective assessment of Bulgaria's condition and readiness for accession to the EU will be given in mid-July 1996, when on behalf of Bulgaria, Mrs Irina Bokova, Deputy Foreign Minister and Secretary of the Government Committee on European Integration, will present the answers to a questionnaire sent in April 1996 at a session of the Union in Brussels.

"The questionnaire is large in volume, but the Government will undoubtedly prepare sufficiently exhaustive answers in terms of statistics, legislation and priorities," Mrs Bokova said. According to her, by mid-July 1996 the Government will have an initial version of the replies, and the difficulties and ambiguities encountered by Bulgaria will be presented at the session. The report on the adoption of a strategy of Bulgaria for implementation of the recommendations contained in the White Paper on Preparation of Associated Countries for Integration into the Internal Market, which the Government approved yesterday and handed Mr Burghard today, is part of these answers, Mrs Bokova emphasized.

The forthcoming Balkan foreign ministers' meeting in Sofia in early June 1996 also figured on the agenda of the head of government and the European Commission official. Mr Videnov thanked for the EU assistance for the arrangement of this meeting.

[06] PM VIDENOV: LANGUAGE ISSUE SHOULD NOT SPOIL RELATIONS WITH MACEDONIA

"The theory for the existence of a Macedonian language as an attribute to the Macedonian nation and a so called Macedonian minority [in Bulgaria] is unacceptable for us," the Prime Minister said. "We consider it unrealistic to bind the promotion of bilateral relations with claims on Bulgaria to recognize the term 'Macedonian language', " Videnov added. He stated that the Bulgarian side has proposed a number of compromise options, but the Macedonian side has not shown flexibility. "We have not given up the hope that this reasonable and balanced approach will find understanding and support which will be in the interest of bilateral relations," Videnov said.

[07] BULGARIA TO RECEIVE 150 MILLION US DOLLARS FROM THE WORLD BANK

The mission reviewed and reached agreement in principle on the Government's stabilization and structural reform program, particularly banking and enterprize sector reforms and enhancement of the safety net to mitigate the social cost of adjustment. The program includes measures to regain confidence and stabilize the economy as well as to improve efficiency and resume growth, by irreversible transformation into a private-sector-led market economy.

The mission noted that several of the key actions have already been taken - for example, the passage of legislation allowing the liquidation of ailing banks while providing adequate protection of the depositors, tax and price adjustments. The mission concluded that, it the remaining measures are implemented expeditiously, they will yield the desired results soon. The mission also noted with satisfaction the Government's commitment to accelerate the privatization of state-owned enterprises. On this basis, World Bank management is now in a position to recommend to the Board of Executive Directors that funding be made available immediately to mitigate the social cost resulting from closing and downsizing inefficient enterprises.

Finally, World Bank management will be able to recommend to the Board of Executive Directors that incremental balance of payments support be granted to Bulgaria as soon as the first stage of the proposed program of reforms is satisfactorily implemented, and provided that the macroeconomic framework, agreed with the International Monetary Fund, is successfully put in place. According to the Government's program, implementation of its first stage would be completed by September 1996, the press release says.

[08] BUDGET WILL BE UPDATED, FINANCE MINISTER SAYS

According to the Finance Minister, an opportunity to increase the budget revenue is yesterday's change in the value added tax rate from 18 to 22 percent. This will provide about 10,000 million leva for the budget, according to Dimiter Kostov. Another 5,000 million will come from the excise duty increase the Government made a decision for yesterday. Improving the tax collection rate, the introduction of a temporary 5- percent fee on imported goods and the mark-up of profit tax are the other sources for budget revenue. As a result of this measures, the percentage of the deficit in the gross internal product will remain unchanged, the Finance Minister believes.

[09] BANKRUPTCY PROCEEDINGS INITIATED AGAINST TWO BANKS

According to the Act on State Protection of Deposits and Accounts with Failing Banks which parliament passed by proposal of the Government, physical persons can transfer their hard currency deposits from Mineralbank and First Private Bank to the Bulgarian Post Bank and draw 25 percent of their assets every six months. Lev accounts, including hard currency deposits converted into lev ones, which will be available at the State Savings Banks without restraint. Under the Act, personal deposits are guaranteed 100 percent and company deposits 50 percent.

[10] BREAD CRISIS

During question-time in Parliament today Deputy Prime Minister and Minister of Agriculture Svetoslav Shivarov denied allegations that he ordered not to sell flour to private bakers. "The queues in front of bakeries are due to rumours for grain and bread shortage that has been spread for six months now," Shivarov stated. "Unlike senior government officials and the MPs the prevailing part of the population has increased its consumption of bread because it cannot afford buying meat, meat preparations, milk and dairies," Minister Shivarov added. According to him, the Government has taken all necessary measures to promote bread and flour manufacture, but in the conditions of market economy the state cannot fully provide the companies with inputs and subsidize them. Stoyan Raichevski, MP of the opposition Union of Democratic Forces, urged Shivarov to take part of the responsibility for the crisis by tendering his resignation.

Throughout the whole week BTA local correspondents reported about problems with bread supply nationwide. In many population centres the bread was sold out for several hours and in others rationing was introduced. In Sofia people stood in lines to buy bread and profiteers sold loafs of bread at several-times their price. According to recent reports, private bakers hid flour for the purpose of profiteering and transported large amounts of bread to certain regions where they sold them at higher prices. In the past few days economic groups and owners of bakeries threatened private bakers from Plovdiv, Stara Zagora and other regions in the country to maltreat them and destroy their property, if they keep on producing bread, reads an Interior Ministry press release issued today. The Interior Ministry states it will crack down on all these who using illegal means impede the population's supply with bread.

[11] PARLIAMENT AMENDS BULGARIAN CITIZENSHIP ACT

This amendment brings the Bulgarian Citizenship Act in line with the new Constitution (passed in the summer of 1990) introducing the term "citizenship by birth". Under the Constitution, presidential candidates have to be Bulgarian citizens by birth. This provision sparked heated debates in the left wing on whether incumbent Foreign Minister Georgi Pirinski is eligible to run for president, being born in the US. Sociological surveys published this week show that Pirinski leads all other presidential candidates.

This week the opposition accused the majority of amending the Bulgarian Citizenship Act to solve an internal party problem - this of Pirinski candidature. Because of a single person the opposition is ready to deprive of Bulgarian citizenship thousands of Bulgarians born abroad, Vulkanov said in response to the accusations.

[12] STRICT CHECKS BLOCK CUSTOMHOUSES

[13] P.M. VIDENOV ON SECOND N-PLANT IN BULGARIA

According to the Prime Minister, the completion of the second nuclear power plant is also necessitated by the fact that, according to expert estimates, energy industry may count on inexpensive Bulgarian coal only until the year 2010. The other alternative to constructing an N- plant is to build power stations operating on expensive imported coal or natural gas which would increase the country's dependence on imported energy sources, Videnov said.

In 2004-1005 two 800-megawatt reactors at the N-plant in Kozlodoui (on the Danube) will be decommissioned which makes indispensable the introduction of 1,000 megawatt new nuclear capacities. Having in mind the danger of nuclear incidents, which in the contemporary conditions may be minimized, electricity production in nuclear power plants is the most environment-friendly method, Videnov said. In 1995 alone the N-plant in Kozlodoui spared the environment harmful emissions of 19 million tonnes of carbon oxides, 1.1 million tonnes of sulphur oxides, 32,000 tonnes of nitric oxides and 4,000 tonnes of dust.

About 40 per cent of the basic equipment for the construction of the first reactor of the Belene N-plant have already been delivered, it has been completed some 40 per cent and more than 1,000 million US dollars have been invested in the project. According to the Prime Minister, these investments are not to be disregarded. Preliminary estimates show that the completion of the first reactor needs another 1,400 million US dollars, which may be provided by an international consortium in which Bulgaria will have interest together with European and world financial institutions.

[14] BULGARIA LEADER IN ANTIPIRACY LAW

The theft of intellectual property has been a criminal act since June 1995, "Pari" recalls. According to experts, however, the compact disc market in Bulgaria only got going in 1995, and pirated products launched before this country joined the Geneva intellectual property convention are still for sale, the paper says.

[15] SIMEON II'S VISIT

[16] JUNE 2 - THE DAY OF BOTEV AND THE FALLEN FOR BULGARIA'S FREEDOM

As sirens sounded at noon, the nation came to a standstill for three minutes of silence, paying tribute to the dead. The traditional pilgrimage to Peak Okolchitsa (in the Western section of the Balkan Range) where Botev's detachment fought its last battle, ended this morning. Almost 1,500 adults and children took part in this year's pilgrimage. Metropolitan Kalinik of Vratsa celebrated a thanksgiving service for the heroically won fre freedom of Bulgaria.

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