News from Bulgaria / 96-06-12

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

12 June, 1996

CONTENTS

[01] PARLIAMENT DEBATES NO-CONFIDENCE MOTION

[02] INTERNATIONAL CONFERENCE TO DISCUSS URBAN DEVELOPMENT, TRANSPORT, ENVIRONMENT IN SOFIA

[03] BULGARIAN RED CROSS HELPS REFUGEES

[04] MAKAZA: THE BULGARIAN KLONDIKE

[05] MEASURES TAKEN TO PREVENT F.M.D. OUTBREAK

[01] PARLIAMENT DEBATES NO-CONFIDENCE MOTION

This is the opposition's third no-confidence vote in the Cabinet since the latter took office in January 1995. But it is for the first time that there is talk about a possibility of the Cabinet actually falling after tomorrow's vote. In an interview in today's press Socialist MP Alexander Marinov speaks of a possible fall of the Government. Alexander Marinov became highly critical of Videnov's policy after his removal from the leadership of the Sofia organization of the BSP. The Bulgarian Business Block (BBB) today called on the Left to form a new Cabinet. Democratic Left floor leader Krassimir Premyanov said his parliamentary group rejected the no-confidence motion.

"In the second year of its rule the Bulgarian Socialist Party (BSP, ruling in coalition with left-wing Agrarians and environmentalists) brought us to an unprecedented total crisis in Bulgaria's modern history. A crisis in agriculture, a crisis in industry, a crisis in the banking system, a financial crisis, a food crisis, a national currency crisis and a confidence crisis," said UDF floor leader Yordan Sokolov, setting forth the motives of the opposition in Parliament. "The main reason for the failure of the economic policy of the Government of the BSP stems from the untenability of the idea of the so-called left transition, from the incompatibility between the necessary reforms and leftist phraseology, from corruption in the top echelons of power and the incompetence of the Government's economic team," the opposition claims.

The opposition also accuses the Government of blocking the restructuring and privatization of state-owned enterprises, the rehabilitation and stabilization of the banking and financial system and the bringing of the public sector in conformity with market principles and requirements. The Government has lost the confidence of the people in Bulgaria, it has no prestige among foreign economic circles and no programme for overcoming the economic crisis, the opposition claims.

Addressing Parliament Prime Minister Videnov refuted the accusations of the opposition calling them unsubstantiated. The left- wing is the force capable of leading this country out of the crisis, he said. "The left-wing has launched the reform and if someone stops it he will be responsible," Videnov said. He denied the allegations that the Government has stopped privatization, that its attitude to foreign investors is supercilious, that it is obstructing private business and that by its action or inaction it has brought about a crisis in the banking system. On his part Videnov accused the UDF saying the crisis was the result of the "criminal" policy pursued by the UDF government in 1992. Videnov did not deny that the Government is still working on its structural reform strategy and explained that this requires time.

"If you disagree with our policy, tell us what you propose as an alternative. The truth is you have no alternative," Deputy Prime Minister and Minister of Economic Development Roumen Gechev said. Cabinet ministers took the floor repeatedly during the debate to reply to MPs of the opposition.

The debates were strongly politicized, with bouts of recriminations between the opposition and the majority. The Cabinet's policy was sharply criticized by MPs of the BBB, who supported the arguments offered by the opposition. BBB deputy leader Georgi Dilkov stated that his parliamentary group would support the no-confidence motion. Dilkov appealed to the majority to replace "its failed Cabinet team", but said that at this point the Business Block was against the restructuring of Parliament, a parliamentary crisis and early parliamentary elections.

In a strong-worded statement against the Cabinet's policy, UDF leader Ivan Kostov called on the Democratic Left to vote according to conscience. He accused the Cabinet of imposing creeping martial law in the country, manifested, for instance, in the barriers set up around Parliament.

Krassimir Premyanov called Kostov's statement a "propaganda speech", charging that the UDF broke the law and set an example of "chaos and disorder" by tolerating its MPs' rough behaviour towards police around the Parliament building. "We accept the need for dialogue in society but we do not accept this vote," Premyanov said, adding that the majority in Parliament and the Cabinet had taken the responsibility for carrying out reform and wanted respect for this responsibility.

The trade unions and the united opposition staged a rally in central Sofia today demanding the Cabinet's resignation and the building of a united front that would work for "Bulgaria's salvation". The rally was "against the government of national catastrophe". It was organized by the Confederation of Independent Trade Unions in Bulgaria (CITUB), the Podkrepa Labour Confederation, the National Trade Union and the Association of Democratic Trade Unions. This was the first of a series of protests against Socialist government scheduled for Wednesday around the country. Podkrepa President Konstantin Trenchev blamed the current crisis on the BSP. Bulgaria has never imported grain or bread in its 1,300-year history, he said. One and a half million Bulgarians staged strikes in the past week to say "no" to the policy which made us poorer than ever, said CITUB Vice President Ivan Neikov. He said all the trade unions want is jobs and bread. UDF Deputy Chairperson Nadezhda Mihailova said that the opposition demands the resignation of Zhan Videnov's Cabinet as well as of any Socialist government and that early parliamentary elections are needed.

[02] INTERNATIONAL CONFERENCE TO DISCUSS URBAN DEVELOPMENT, TRANSPORT, ENVIRONMENT IN SOFIA

BANKING

Nearly half of the due interbank settlements were delayed by low liquidity. 40,000 payments were effected while 48,000 for a nearly 10,000 million leva are overdue, "Troud" writes. In spite of the delays, most payments are effected within the 10-day period provided for by the law. Two banks are unable to make the due payments at all, the report says without naming the banks in question. There is no danger of suspending the payment of pensions and social benefits because the money for this are placed with reliable banks, "Troud" writes further.

The deadline for submitting rehabilitation programmes by a number of banks expired yesterday. The programmes will be reviewed by the central bank by the end of the week and some of them might be returned for updating, the report says. In case a rehabilitation programme does not get the central bank's approval, the bank in question will be placed under special supervision and its managing boards replaced, the story goes. Unnamed analysts are quoted saying that some of the requirements commercial banks are expected to meet are unfeasible. Some minor banks are likely to opt for voluntary liquidation which presupposes repayment of the debts to all creditors, says "Troud".

[03] BULGARIAN RED CROSS HELPS REFUGEES

According to data of the Bulgarian National Bureau for Territorial Asylum and Refugees, there are more than 200 officially registered refugees of Bosnia and Herzegovina in Bulgaria, as well as small groups of people from Afghanistan, Palestine, Ethiopia and elsewhere. The BRC helps these people by providing consultation and information on receiving a refugee status; With help from other institutions, the organizations also provides homes for refugees in Bulgaria.

In 1996, another body, the National Bureau for Territorial Asylum and Refugees, will continue to implement programmes of the International Organization for Migration for helping university students of Mozambique and Tanzania and for voluntary repatriation of illegal alines of Asia and Africa. The programme for voluntary repatriation of Bosnian nationals is currently being drafted. The project will be carried out with the UNHCR Liaison Office in Sofia, it emerged at the news conference.

[04] MAKAZA: THE BULGARIAN KLONDIKE

There are, though, no clear plans for the future of Makaza and the new border crossing might not open in the next 5 years. Even though it has provided 6,000 million drachmas for its side of the project, Greece is in no hurry to launch the construction, this correspondent says. He believes the other two check points due to open on the Bulgarian-Greek border are far more important for Greece.

The Interior Ministry expects to have hard times in the area with the opening of the new border crossing, the dispatch says. Gambling is already becoming increasingly popular, and prostitution and drugs are sure to follow. Police recently busted a ring for stolen cars.

[05] MEASURES TAKEN TO PREVENT F.M.D. OUTBREAK

In May 1993 F.M.D. was reported in Simeonovgrad (southeastern Bulgaria) on the Bulgarian-Turkish border. The government then opted for destroying 2,300 cattle, sheep and goats. Damages from herd killings and disinfection hit some 10 million leva and losses from unrealized exports to Western Europe were ten times as big. There was an F.M.D. outbreak close to the Bulgarian border again last year, but a spillover was prevented.

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