News from Bulgaria, 96-10-31

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

31 October, 1996

CONTENTS

[01] PRESIDENTIAL CANDIDATES STOYANOV AND MARAZOV ON WAYS OUT OF THE CRISIS

[02] IMF MISSION LEADER FOR BULGARIA MCGUIRK ARRIVES TOMORROW

[03] UPCOMING BULGARIAN-MACEDONIAN TALKS

[04] INDIAN INTERIOR MINISTER VISIT TO BULGARIA

[05] SLOVAK CHIEF OF GENERAL STAFF ENDS VISIT

[06] A NATIONAL COUNCIL FOR PROTECTION, REHABILITATION AND SOCIAL INTEGRATION OF THE DISABLED TO BE SET UP

[07] DROP IN GROSS DOMESTIC PRODUCT

[08] AGREEMENT FOR HEAT-FLOW METERS DELIVERY SIGNED WITH WORLD BANK

[01] PRESIDENTIAL CANDIDATES STOYANOV AND MARAZOV ON WAYS OUT OF THE CRISIS

"The sole Government which had the courage to start the economic reforms, though with a bit of delay, did not have the courage to say that none of the political forces, including the Bulgarian Socialist Party, could cope with the crisis alone," Ivan Marazov, Minister of Culture in Zhan Videnov's Cabinet, said.

The official results of the October 27 presidential elections released by the Central Electoral Commission show that Peter Stoyanov garnered 44.07 percent of the vote and Ivan Marazov 27.01 percent. Observers explain the results of the first round with the grave crisis which has become even worse over the last year. Both the united opposition and the ruling Left stated they would rely on the mobilization of voters for a victory in the run-off. However, political scientists believe that any hopes of the Left that its candidate can close the large gap and win the elections remain in the theoretical realm. Today the Left opened negotiations with third-placed George Ganchev of the Bulgarian Business Bloc (21.87 percent) and Alexander Tomov, an independent candidate and leader of the Civil Alliance for the Republic (placed fourth, 3.16 percent) .

Georgi Purvanov, BSP Deputy Chairman and Marazov's campaign manager, described the talks of representatives of the Together for Bulgaria coalition with the Civil Alliance for the Republic and the Bulgarian Business Bloc as first steps to the revival of the dialogue on the future of political and economic reforms. "The leaders of the two organizations, Tomov and Ganchev, will announce their official positions in a day or two but the voters will decide themselves who they will support," Purvanov said. Marazov sees the only way to overcome the crisis in national concord. The Left repeatedly stressed during its election campaign that it wanted the Presidency in order to achieve unity of action of state institutions and to go on with the structural reform.

Today Peter Stoyanov had a meeting with representatives the Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Podkrepa Labour Confederation (the two major labour amalgamations in Bulgaria) and the Union of Bulgarian Women. Unemployment was in the focus of their discussion. "The severe unemployment in the country is perhaps the most stinging indictment against the incompetent rule of the BSP," Stoyanov stated.

Two days ago the leaders of CITUB and Podkrepa, who have been criticizing Videnov's government for a long time, declared their support for Stoyanov. "We hope for a more convincing repetition of last Sunday's vote which, among other things, would lead to overcoming this country's international isolation," CITUB President Krustyu Petkov said. He stated that the loss of the candidate of the Left in the first voting was "something expected and logical, one of the reasons for which is the failure of BSP's rule". The two labour amalgamations declared their readiness for nation-wide protest actions on November 20. The trade unions are prepared for general strike but wait for support from the opposition, Podkrepa President Konstantin Trenchev said yesterday. He announced that the trade unions and the opposition would open negotiations immediately after the presidential elections.

[02] IMF MISSION LEADER FOR BULGARIA MCGUIRK ARRIVES TOMORROW

The IMF mission will make a complete review of the implementation of the memorandum the Bulgarian Government drew up signing the fourth stand-by agreement with the Fund in July 1996. The agreement is for a loan of 580 million US dollars' worth, 116 million of which Bulgaria received already in late July. The second tranche of some 100 million US dollars' worth should have been remitted in late September but the IMF delayed it because of the sluggish pace of the reforms.

If the mission is satisfied with the results achieved the country will probably receive the second and third tranches which are of the total worth of 180 million US dollars as a lump sum, according to representatives of the National Bank of Bulgaria (BNB) and the Government. Bulgaria's Prime Minister Zhan Videnov said yesterday he will try to persuade the IMF mission that all possible measures to stabilize the banking system, accelerate privatization and liquidate the losing enterprises have been taken.

The IMF mission, led by Anne McGuirk, will also get familiarized with the projected macroeconomic indicators and the draft budget for 1997. The macroeconomic parameters together with the privatization and the liquidation of loss-makers is the third precondition for the extension of financial assistance by the IMF. Regardless of the firm Government policy the condition of the macroeconomic indicators is unsatisfactory, Videnov stated. Two days ago Finance Minister Dimiter Kostov said that if the Government and the central banks reduce the budget deficit and implement uncompromizingly stabilization policy inflation may be curtailed down to 33 percent in 1997. Kostov said he is optimistic about the receiving of the second and third tranches adding that this will facilitate the foreign debt payments.

[03] UPCOMING BULGARIAN-MACEDONIAN TALKS

An agreement about bilateral talks was reached during a meeting of Bulgarian Foreign Minister Georgi Pirinski with his Macedonian counterpart Ljubomir Frckovski at the time of the 51st session of the UN General Assembly in New York. Initiative for the talks came from the Bulgarian side. The Bulgarian delegation will be headed by Deputy Foreign Minister Ivan Hristov.

The two parties will exchange opinions about the proposed draft declaration on the principles of Bulgarian-Macedonian relations. The possibilities to promote bilateral relations in all spheres of mutual interest will also be on the agenda of the talks, reads the press release.

[04] INDIAN INTERIOR MINISTER VISIT TO BULGARIA

"We hope very much that our discussions with your incumbent leaders will lead to some positive measures which will strengthen our cooperation to our mutual benefit and advantage and will strengthen our friendship," Mr Gupta said. "The friendly people of Bulgaria are very much appreciated by the Indian people. Past history shows that we have very close bonds of friendship and cooperation and we hope to strengthen them," he added.

The delegation will have talks at the Bulgarian Interior Ministry during which the parties will review the realization of the agreement for cooperation signed between the two ministers in 1994. New directions for the cooperation between the two interior ministries will be mapped out.

The Indian delegation is scheduled to have meetings with Parliament Chairman Blagovest Sendov, with Prime Minister Zhan Videnov, Interior Minister Georgi Pirinski, Minister of Trade and Foreign Economic Cooperation Atanas Paparizov, Industry Minister Lyubomir Dachev. The guests will also have talks at the Ministry of Justice.

An agreement for combat against organised crime, international terrorism and the smuggling of narcotic and psychotropic substances is in force between Bulgaria and India. The accords were signed during the official visits to Bulgaria of Indian President Shankar Dayal Sharma in May, 1994.

[05] SLOVAK CHIEF OF GENERAL STAFF ENDS VISIT

A framework document on cooperation between the Bulgarian and Slovak defence ministries signed in 1995 envisages assistance in the development of the two countries' military doctrines, cooperation in military policy, science and training. The document provides exchange of delegations and visits within military cooperation and exchange of vacations.

In late August 1996 Defence Minister Pavlov and his Slovak counterpart Jan Sitek who made a three-day visit here noted that the agreement was being successfully implemented. Cooperation between the Bulgarian and Slovak armies is particularly useful, especially in the area of military equipment repair and spare parts deliveries, Minister Pavlov then said. He laid stress on the achievements in the exchange of vacations. The major priorities of military policy were in the highlights of Minister Sitek's talks during this visit at the invitation of Minister Pavlov. Before leaving Bulgaria today General Tuchina noted the successful cooperation and implementation of the bilateral agreement too.

During his visit the Slovak Chief of the General Staff got familiarized with the reforms in the Bulgarian army and the problems of its logistical support. He told journalist that the problems facing the Bulgarian and Slovak armies are similar.

During his visit General Tuchina conferred with General Totomirov, deputy defence ministers Vladimir Penchev and Dimiter Mitkov. The guest got familiarized on spot with the training of units of the Bulgarian land and air force.

The guest described as successful this year's drills of Slovak Air Defence units at the Bulgarian shooting range near the Cape of Shabla (on the Black Sea). For his part Tsvetan Totomirov praised the skills of the Slovak servicemen and the excellent results they have shown.

Today General Totomirov said that Bulgaria shows interest in the experience of the Slovak army from the participation of its contingent in the UN Protection Force in Bosnia. The Bulgarian army is ready to send a military contingent of peace-keepers to former Yugoslavia or wherever necessary, if a decision to this effect is taken by the Government and the National Assembly, Totomirov stated.

[06] A NATIONAL COUNCIL FOR PROTECTION, REHABILITATION AND SOCIAL INTEGRATION OF THE DISABLED TO BE SET UP

Slightly over 16 per cent of Bulgarians suffer from disabling diseases. Invalidity pensions are paid to 365,000 people (10-12 per cent of the population), the National Insurance Institute said. There are unions of the disabled, the blind, the deaf and labour cooperatives of the disabled.

Employment has become a serious problem for the disabled since the transition to a market economy began. Only 1,280 of 5,800 blind and poorly sighted people have jobs, said Ivan Kroumov, Chairman of the Union of the Blind. State preference to cooperatives providing jobs to the disabled have been lifted.

At the end of 1994 the then government cancelled free travel for disabled people on public transport. Though cash-strapped, the Sofia city council has provided free travel cards to the disabled.

[07] DROP IN GROSS DOMESTIC PRODUCT

The private sector accounted for 49.4%, or 140,200 million leva, of Bulgaria's GDP in the second quarter, with the greatest share of it generated by the real economy. According to NSI, consumption in April-June shrank by 1.5%. Gross domestic investment dropped by 38.6% as compared to the second quarter figure for 1995. Entrepreneurs do not invest funds to expand their businesses due to the worsening economic situation and the lifting of tax breaks as of January 1, 1996. NSI estimates that the drop in GDP may exceed 10%.

[08] AGREEMENT FOR HEAT-FLOW METERS DELIVERY SIGNED WITH WORLD BANK

Already in early autumn the problem of heat-flow meters became topical in the country due to the sharp monthly rises of energy and heat sources. Individual heat-flow meters which would rationalize the usage of the central heating in Bulgaria, are not affordable for most Bulgarians. As an example, the average monthly wage in the state-financed sector is equal to some 50 US dollars. Thousands of Bulgarian families decided to switch off all or some of the heating radiators in their homes and start using the more economic solid fuel instead.

The World Bank, on the one side, and the Bulgarian ministries of energy, of regional development and construction and of finance, agreed to accelerate the project for delivery of heat-flow meters by transferring to it 12 million US dollars from the water loan, already released by the World Bank.

The project envisages financing of the delivery of 17,000 heat-flow meters for the heat-distribution stations in all centrally- heated buildings in the country. The larger part of the devices will be used by the Sofia heat supply company, which is the biggest enterprise of that kind in the country. The heat supply companies will ensure fast installation of the heat-flow meters and will start calculating the heating bills on the basis of their readings. Pilot projects for delivery of individual measuring and regulating switches have been planned. The funds for these projects will be ensured, in addition to the World Bank, by the European Bank for Reconstruction and Development and by the PHARE programme.

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