Bulgarian Telegraph Agency (BTA), 97-01-09

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

9 January, 1997

CONTENTS

[01] NIKOLAI DOBREV NOMINATED FOR THE PREMIERSHIP

[02] NIKOLAI DOBREV: A PROFILE

[03] PRESIDENT ZHELEV APPEAL

[04] OUTGOING, INCOMING PRESIDENTS MEET

[05] MINISTERS DISCUSS AMENDMENTS TO BNB ACT

[06] IMF'S ROSWADOWSKI: TALKS WILL CONTINUE WITH NEW CABINET

[07] AMBASSADOR IN BELGRADE MEETS CHAIRMAN OF ECONOMIC CHAMBER

[08] AGRARIAN REFORM STALLED DUE TO BAD LAW, MINISTRY SAYS

[09] OVER $ 1,000 MLN PRIVATIZATION PROCEEDS EXPECTED IN 1997

[10] OPPOSITION PRESS ON WITH PROTESTS

[11] AHMED DOGAN CALLS FOR PROTESTS

[01] NIKOLAI DOBREV NOMINATED FOR THE PREMIERSHIP

[02] NIKOLAI DOBREV: A PROFILE

Nikolai Dobrev was born in Gotse Delchev (Southwestern Bulgaria). He graduated from Sofia's Institute of Mining and Geology and worked as an engineer at the Laboratory of Underground Nuclear Geophysics and Geochemistry. He was an activist of the Young Communist League (the youth branch of the former Communist Party) where he advanced to the position of secretary of its Central Committee. In this capacity, he was went for a specialization course at Moscow's Academy of Social Sciences. Mr Dobrev holds the rank of a reserve major of the army.

After the fall of totalitarianism in 1989, Nikolai Dobrev was mayor of a borough in Sofia. He was elected to Parliament on the Socialist ticket in 1991. As member of the Standing Committee on National Security in the previous parliament, he presided over the preparation of a draft National Security Concept of the Republic of Bulgaria. In December 1994 he won a second term as MP. Until his election as Interior Minister in May 1996, he chaired the Standing Committee on National Security at the incumbent National Assembly. At the Interior Ministry, he prioritized the drive against crime and corruption, objects which all his eight predecessors in the post since 1989 have set themselves. Under his direction, the Ministry worked out and implemented measures to crack down on organized and street crime. Police made a number of arrests, solved serious offences, and broke up smuggling rings for stolen cars, drugs and hard currency.

In late December 1996 Mr Dobrev ordered an all-out effort against corruption within the Interior Ministry, which came to be known as "Operation Clean Hands." The Minister, has repeatedly stressed his willingness to cooperate with the prosecuting and investigative authorities and handed the Prosecutor General's Office information on corruption in the higher echelons of the administration, politics and finance. The opposition argues, however, that Mr Dobrev has not performed adequately in this area.

The Left's PM nominee is married, with two children. A couple of days ago he was re-elected to the decision-making Executive Bureau of the BSP Supreme Council, and chairs the party's Commission on Organizational Affairs and Local Branches.

[03] PRESIDENT ZHELEV APPEAL

In his congratulatory address, the President also wished prosperity to the peoples in the world. "Prosperity for the Bulgarian people in 1997, however, will be impossible because of the incompetent governance of the Democratic Left and the inadequate model of governance of the state," Zhelev said. Mr Mohamed Farah AlGamudi, Secretary of the Libyan Popular Bureau in Sofia, who is the doyen of the foreign ambassadors in Bulgaria, responded to Zhelev's address on behalf of the ambassdors.

[04] OUTGOING, INCOMING PRESIDENTS MEET

[05] MINISTERS DISCUSS AMENDMENTS TO BNB ACT

The amendments concern the central bank's structure and powers to effect banking operations in the conditions of a currency board. The ministers also discussed the principal powers and responsibilities of the BNB Currency Issue Department which, will perform the functions of a currency board.

Finance Minister Kostov told a news conference Tuesday that what is being discussed now are the ways of introducing the principles of a currency board rather than the introduction of a currency board as an institution. It is suggested to set up a Foreign Debt Management Agency which will take over the functions performed so far by the central bank. On Tuesday Mr Kostov stressed that the introduction of a currency board is realistic in late February.

[06] IMF'S ROSWADOWSKI: TALKS WILL CONTINUE WITH NEW CABINET

[07] AMBASSADOR IN BELGRADE MEETS CHAIRMAN OF ECONOMIC CHAMBER

Last year the commercial exchange between the two states amounted to 300 million US dollars. In 1997 the two states will seek to establish industrial cooperation in chemical industry, electrical engineering industry, metallurgy and in the manufacture of construction materials. They will also seek opportunities to set up joint ventures and enter third markets. The two officials noted also the necessity to alleviate the customs procedures to facilitate trade.

At a meeting in early 1996, Prime Minister Zhan Videnov and his Yugoslav counterpart Radoje Kontic projected that the commercial exchange may add up to some 500,000 million US dollars already in the same year.

[08] AGRARIAN REFORM STALLED DUE TO BAD LAW, MINISTRY SAYS

On February 22, 1991 the Grand National Assembly adopted the Agricultural Land Tenure Act, popularly known as the "land law". The Act gave the go ahead not only of the agricultural but also of the economic reform in Bulgaria. However, since the law was passed it has been amended 15 times and the Constitutional Court has twice ruled amendments to it unconstitutional.

The land restitution proved very complex and costly and did not yield the expected results, Deputy Agriculture Minister Haralampiev told a "Daily News" reporter. In his view the main reason for the slow land ownership restitution was the bad law. The opposition also considers the law imperfect attributing the sluggishness of the reform mainly to the latest amendments to the land law, proposed by the majority in Parliament.

"If the question is to be resolved radically the effective Act should be revoked and replaced by a new, more simple and efficient one making possible the land ownership restitution within a year. There is hardly a politician or statesman, however, who would take such decision give the reform is already in an advanced stage," according to Haralampiev. In his view at present the restitution of land is hindered mainly by financial problems. Some 10,000 million leva have been spent on the land ownership restitution so far and the Agriculture Ministry will insist on a 1,800 million leva's worth budget allocation for 1997. Another problem are the arguments between owners and people to which land was allocated for use. These arguments should be settled by a separate special law, Deputy Minister Haralampiev said. A bill to this effect will be moved in the Council of Ministers in the next few months. Haralampiev said the Ministry will seek a solution which will be in the interest of both sides and will settle arguments the soonest possible.

By late January a land consolidation bill which is necessary for the further progress of the land reform will be proposed to the Government, Haralampiev stated. The next serious problem will be the division of the land among the heirs, experts say. There are more than 10.5 million plots on the total of 5.5 million ha of arable land in this country.

According to experts, a land market proper cannot be established in Bulgaria for the time being. They attribute this mainly to the inefficiency of farm production and the lack of legal framework: laws on the cadastre, on land registration, etc. Little interest is shown in purchasing land but for plots in the city outskirts, near the roads and in the costal areas. Experts say interest in land will increase only after the recovery of farming.

[09] OVER $ 1,000 MLN PRIVATIZATION PROCEEDS EXPECTED IN 1997

There are about 100 large strategic enterprises on the list which is to be approved by the Council of Ministers and endorsed by the National Assembly. 30 mechanical engineering, electronic, metallurgical, chemical and other plants will be offered to investors ready to introduce new production lines and to enter new markets, Mr Iliev said. Shares in 660 enterprises, where the state's interest is under 33 per cent after the voucher privatization, will be sold for cash. Some 200 enterprises will be offered for management-employee buyout and a separate list of 90 enterprises will be saleable only with the approval of the Council of Ministers.

Mr Iliev expects the cash privatization to bring not less than 1,000 million US dollars proceeds in 1997. The Agency plans that the new owners will invest 35,000 million leva and to pay 13,000-15,000 million leva obligations of the privatized enterprises. 45,000 jobs are expected to be preserved and another 5,000 to be opened. According to Mr Iliev's projections, the process of ownership restructuring will be completed in general terms by the end of 1998.

32 million shares or 42 per cent of all offered interest were purchased at the first session of the mass privatization auction, said Mr Iliev who is also Chairman of the Auction Commission.

Of the 968 enterprises offered at the first session, the privatization funds have acquired shares in 578. They have bought out 3, in 55 the individual participants prevail over the funds and 390 have been sold to individual bidders alone.

With 2.8 million shares, the Doverie Privatization Fund has acquired the largest number of shares among the privatization funds. It is followed by Petrol - 2.4 million shares and Moultigroup - 2.3 million. The Doverie Fund has also acquired shares in the largest number of enterprises, 90, followed by the Bulgarian-Dutch Privatization Fund - 74, Aktsioner Favorit - 70 and some others. 52,000 million leva of capital will be offered at the next auction.

Mr Iliev commented that unsold portions in the enterprises on the mass privatization list have been increasingly attracting the bidders, as the funds are interested in acquiring a majority stake in these enterprises.

[10] OPPOSITION PRESS ON WITH PROTESTS

"We must not allow the BSP to waste Bulgaria any longer!" said Metropolitan Inokentii of Sofia, opening the rally. Marching past the Socialist Party headquarters, the protestors chanted "Down with BSP!" and "Jail for Criminal Incumbents!" and sang patriotic songs.

The rally and procession were organized by the United Democratic Forces (which, apart from the UDF, includes the Popular Union and the Movement for Rights and Freedoms) and with the support of major labour amalgamations. Wednesday's rally was a sequel to a rally held in Sofia on January 3 under the motto "No to a New BSP Government, Yes to Early Elections, Support for the Draft Declaration on National Salvation." The declaration in question, tabled in Parliament by the united opposition on December 19, 1996, calls for immediate dissolution of the legislature and early general elections. On January 3, 1997 Parliament failed to take a vote on the declaration because it ran out of time. Another extraordinary sitting will be held on January 10.

Rallies and processions against the BSP government were held in several large cities during the week. Protests were staged in the provinces on Wednesday as well. Further actions of the opposition are planned.

"Provided they are well organized and provided there is discipline, the protests may only play a positive role," President Zhelev said on Wednesday. "If, however, excesses or violence are provoked somewhere, this will trigger destabilization of the country," he added.

[11] AHMED DOGAN CALLS FOR PROTESTS

The UtdDF coalition partners - the Union of Democratic Forces, the Popular Union and the MRF - will walk out of Parliament if necessary and will organize a national political strike if the Socialist Party forms a second cabinet. Dogan called MRF members and sympathizers to take action for the ouster of the Socialist Party from power and for early parliamentary elections. Under the law, elections are to be held in two years. The seventh anniversary of the setting up of the MRF's first district branch was marked in Kurdjali on Wednesday.

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