Bulgarian Telegraph Agency (BTA), 97-01-30

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

30 January, 1997

CONTENTS

[01] PRESIDENT STOYANOV: BULGARIA AIMS TO JOIN THE EU

[02] PRESIDENT STOYANOV AND NATO'S SOLANA NEWS CONFERENCE

[03] SOCIALIST PM DESIGNATE SAYS HE WILL NOT EVADE RESPONSIBILITY

[04] NATIONAL STRIKE BEGINS

[05] BRITISH FOREIGN SECRETARY RIFKIND ENDS VISIT

[06] ANALYST'S COMMENTS RIFKIND'S SOFIA VISIT

[07] ON IRAQI DEBT TO BULGARIA

[08] BULGARIAN BUSINESS BLOC LEAVES PARLIAMENT

[09] LEFT DISCUSSES PACKAGE OF MEASURES AMID GALLOPING INFLATION

[10] BULGARIAN LEV PLUMMETS AGAIN

[11] 24TH DAY OF PROTESTS AGAINST RULING SOCIALISTS

[01] PRESIDENT STOYANOV: BULGARIA AIMS TO JOIN THE EU

The EU is Bulgaria's only model and cherished dream, Stoyanov said before the European Parliament. "Unlike other political issues, Bulgaria's integration in the EU enjoys a broad consensus among the political forces," he stressed. The driving mechanism behind cooperation with, and integration in the EU is the consistent implementation of this country's Europe Agreement and the strategy for preparation of the associated countries for accession. The EU has become Bulgaria's major political and economic partner, Stoyanov said.

Bulgaria needs assistance to cope with its external debt at a time of extremely difficult transition, the Bulgarian President said. He pleaded for faster provision of balance-of-payments support even before the end of negotiations with the IMF.

Asked about the situation in the country, President Stoyanov said Bulgaria is a victim of ersatz reforms, incompetence and corruption in government, as well as of utter disrespect for public opinion by the incumbents. The Left's attempt to put into practice its own socially- oriented version of transition led to hyperinflation and a disastrous lack of confidence in the Government and Parliament, Stoyanov said. The strength of the parliamentary majority has substituted the much needed social consensus in solving the problems of the State, which means a new social contract is needed. Stoyanov emphasized he was optimistic about the outcome of political confrontation in Bulgaria. He assured the MEPs he would spare no effort to end the crisis. He was certain there would be early parliamentary elections in Bulgaria.

Asked about the Bulgarian Constitution, the President compared it to a chessboard on which bad, good and grand master's moves are possible. He said he would work hard to live up to the high expectations of the people who placed their confidence in him at the 1996 presidential elections. He believes the political forces will understand his call for national unity. At noon Peter Stoyanov met with European Parliament President Gil-Delgado.

[02] PRESIDENT STOYANOV AND NATO'S SOLANA NEWS CONFERENCE

President Peter Stoyanov said joining the European Union and NATO will be major successes for Bulgaria. He said the country is about to take important decisions and the current crisis clearly shows that feigning reforms no longer works. The country needs clear political priorities, Stoyanov stated, adding that the reforms start with a clearly stated desire to join NATO.

Asked about when a consensus in Bulgaria on the necessity of joining NATO is likely, Stoyanov replied that his victory with two-thirds of the popular vote at the presidential elections on November 96 was also a referendum of sorts on the country's desire for membership in this organization.

[03] SOCIALIST PM DESIGNATE SAYS HE WILL NOT EVADE RESPONSIBILITY

About the current government, Dobrev said in the interview "Our government was inadequate and it failed. There is no point in pretending we are blind about it". He said the political crisis released energy and long-suppressed financial, economic and social tension exploded finding an outlet in the just discontent and nation-wide protests of the people. Hyperinflation is at our door, the financial system has collapsed, the economy has ground to a halt, private businesses have been virtually blocked, chaos threatens public peace, Dobrev estimated. The shadow of violence hangs over big cities and the criminal elements are the ones who are happy about it, according to Dobrev. He believes chaos and lawlessness are among the most serious problems of Bulgaria.

Unfortunately, some politicians fail to understand the depth of the problems, and true to Balkan traditions, are ready to try and earn political dividends from anything, including people's dire straights, he said, adding that these politicians ignore the national interests.

Dobrev accepts the idea of early elections as the only solution to the crisis. He said, however, that before early elections are held, the country should adopt a package of anti-crisis measures as well as laws on the introduction of a currency board and a national budget, which couldnít be do in only 10 days. It is the politicians' duty to sit to the negotiating table and set reasonable deadlines for this, said the interviewee.

In the period before general elections Bulgaria needs a new government of patriotic minded people, experts and politicians, a broad-based government officially appointed on the mandate of the Socialists, to take decisive and irreversible steps on the road to reforms and ensure people's survival through the winter, guided by an anti-crisis programme supported by all political forces, Dobrev said. This government will work for three to five months at the most.

"I want us all to fight the crisis together and if it doesnít happen, do not expect me to abdicate my responsibilities. I will observe the constitutional deadline and submit a line-up of a broad-based government of experts to the President," he concluded.

[04] NATIONAL STRIKE BEGINS

Today the trade union of the railway employees with the Confederation of Independent Trade Unions in Bulgaria (CITUB) joined the general strike declared on Tuesday. On Wednesday some trains in the country as well as international trains for Belgrade and Athens were stopped for an hour, the strike committee said. According to figures of the trade union, over 90 per cent of the railway employees are expected to join the strike, which will disrupt passenger, fast and international train services. More than 300 local trade unions sections in kindergartens and schools were also reported to have started strike actions. Local CITUB structures nationwide continue joining the general strike.

[05] BRITISH FOREIGN SECRETARY RIFKIND ENDS VISIT

The British Foreign Secretary said he appreciates President Stoyanov's efforts to achieve stability and progress in Bulgaria. The Bulgarian President clearly needs the cooperation of all Bulgarians who wish to see progress and strengthening of the democratic institutions, he stated. "Britain and other European countries are very much aware of the very serious economic problems that Bulgaria faces at the present time," Rifkind added.

"We are pleased that Mr. Rifkind came here at this moment and highly appreciate the support Great Britain provides to the development of the democratic processes in Bulgaria and the progress of the economic reforms," Acting Foreign Minister Bokova said. She stressed that during the talks the sides were unanimous that there are untapped possibilities for strengthening Bulgarian-British relations and that efforts should be made to attract more British investments to Bulgaria.

To a question from a reporter about Bulgaria's chances to join the EU and NATO, Rifkind replied that at present the European Commission is examining the EU applicant countries, including Bulgaria. He expressed hope that the Commission's opinion will be positive. "As far as NATO is concerned there has been over the last two years some ambiguity and uncertainty as regards the desire of the Bulgarian government to join NATO and I hope that it will be one of the first priorities of the new Bulgarian government to clarify its position on this question," he added.

Asked about his opinion on the investigation of the murder of Bulgarian dissident writer Georgi Markov in London in 1978, Rifkind said this issue was on the agenda of his talks with President Stoyanov. New, democratic Bulgaria will wish to see that matter clarified, investigated and those responsible identified so that it can be seen as distancing itself from the old regime that could carry out such a terrible murder, Rifkind stated.

[06] ANALYST'S COMMENTS RIFKIND'S SOFIA VISIT

He sees the visit as a direct signal of support for the efforts of Bulgaria's new President Peter Stoyanov. Rifkind came to Bulgaria even though the British cabinet needs his vote in Parliament and on Monday the British cabinet was defeated in votes in the House of Representatives on two issues, because of the absence of key cabinet ministers, Isle recalled.

[07] ON IRAQI DEBT TO BULGARIA

Mr. Ahmad recalled that the governments of the two countries had signed an agreement on settling the debt by the delivery of 4,750,000 t of Iraqi oil. The oil should have been supplied in full by the end of 1993. He said that Bulgaria had received oil worth 144 million USD before the imposition of embargo on Iraq. The supplies were suspended on February 8, 1991 after the Gulf War broke. The Iraqi Ambassador expressed hope that the embargo on Iraq would be lifted soon and his country would be able to repay its debt.

Before the embargo annual trade between Bulgaria and Iraq reached 1,000 US dollars. Vassil Vassilev, President of the Bulgarian-Iraqi consortium, believes technically it is possible for Iraq to start repaying its debt even now. He said that Turkey and Jordan have already set precedents, obtaining a the necessary permission from the UN Security Council.

[08] BULGARIAN BUSINESS BLOC LEAVES PARLIAMENT

"We are leaving Parliament in protest against the irresponsible position of the BSP and the United Democratic Forces and their refusal to introduce urgent measures for salvation of the nation," says a declaration of the BBB Parliamentary Group, read by its Spokesman Yasho Minkov. The BBB MPs said they will not attend Parliament's sittings and will be only present when the programme and the composition of the Left's second cabinet come up for a debate. The document recalls that the BBB leadership believes early elections should be held not later than September 1997, as the confrontation between the BSP and the UtdDF has turned parliament into an inoperative body and BBB bills are systematically blocked.

"The acceptance by prime minister-designate Nikolai Dobrev to form a cabinet is tantamount to rejection by the BSP and the UtdDF of the BBB's proposal for formation of a programme government and the adoption of a programme for short-term stabilization," the declaration says. This programme calls for tightening of discipline and control in the management of public finance, legal protection for personal savings, adoption of a budget act providing for the maintenance of health care, education, the army, the police and the other state-financed sectors, as well as urgent measures for adequate food supplies in 1997.

The BBB-proposed formula for a programme cabinet formula supported by all parliamentary forces is the only feasible option for a constitutional way out of the deep political crisis, the BBB MPs argue. "By refusing to support such a cabinet, incumbents and opposition assume the responsibility for unleashing the hyperinflation, the erosion of personal savings and possible civil riots," the declaration emphasizes.

On behalf of the Parliamentary Group of the Democratic Left, its Deputy Floor Leader Stefan Gaitandjiev said that the Left had clearly stated its willingness for a coalition or expert programme government and conduct of pre-term elections before the end of this year. The Left called on the BBB to join it in working out a crisis-management programme. Sofia, January 29 (BTA) - "I can well understand the position of the BBB," said the leader of the Socialist Party Georgi Purvanov. "I hope they will contribute to updating the National Assembly agenda so that we could address the most serious issues of society," he said. At present the Left is doing everything necessary so that the problems related to financial stabilization and the introduction of a currency board in Bulgaria come up for a debate at a plenary sitting, he said. "I earnestly hope that in this way we can attract back to Parliament not only our Business Bloc colleague but all other MPs as well," Mr. Purvanov added.

"I would welcome the Business Bloc's walkout if it is in earnest," said Mouravei Radev, an MP of the main opposition force UDF. In his view, the last two years BBB MPs have voted along with the BSP on key matters. "If they really do not return to Parliament and do not vote in favour of a new BSP cabinet, this would be a last try to board the last car of the fast leaving train of democracy in Bulgaria," Radev thought.

Ayroush Hadju, Deputy Chairman of the Central Council of the Movement for Rights and Freedoms, suspects that the Business Bloc took this step guided by partisan rather than national interests.

Popular Union Co-leader Anastasia Moser sees the BBB walkout as further evidence of the need for the Socialists to decline to form a cabinet. "The Business Bloc's stand, which took everybody by surprise, denies the BSP its last chance of garnering a majority," Mrs. Moser commented. In her view, now is the time for MPs of the Left, who have long differed with their parliamentary group, to show consistency and vote against when a new BSP government is put to the vote in Parliament.

[09] LEFT DISCUSSES PACKAGE OF MEASURES AMID GALLOPING INFLATION

Central bank Governor Filipov said that Bulgaria can expect to achieve financial stabilization in about a month and a half, provided that a broad coalition cabinet is formed within a week's time and a mission of the International Monetary Fund arrives within a fortnight. Only fresh loans can bring financial stabilization, Filipov said. He stressed that it is absolutely impossible for the central bank to propose freezing of deposits of the members of the public in commercial banks.

[10] BULGARIAN LEV PLUMMETS AGAIN

The central bank set the official exchange rate for Thursday at the record high 1021.9 leva/1 US dollar. Because of the slim trade on the forex market, the central bank refused to update the official exchange rate even after greenbacks crossed the 1,000 leva mark Tuesday, but two days later it caught up with the cash market levels by introducing a new method for calculating the official exchange rate.

On Wednesday banks traded US dollars at 1,200-1,300 leva and tried to pushed them up in the afternoon in spite of the slim demand. The dull trade calmed the marked down and it closed at 1,300-1,450 leva. Dealers, however, are unanimous that the domestic currency will continue dropping steeply amid a political crisis and mounting social tension.

Foreign exchange bureaus bought US dollars for 1,050-1,100 leva and sold them for 1,300 leva. Dealers say people are confused. Some exchange small US dollar bills and German marks they have bought earlier for Bulgarian leva to buy foods while others buy more hard currency driven by fears for a persistent depreciation of the lev and introduction of a fixed exchange rate at much higher levels.

Members of the parliamentary Budget Committee claim public statements by leading financiers and economists advising people to be ready for conditions of hyperinflation have acted as a catalyst for the negative processes. Depositors are besieging branches of the state-owned State Savings Bank trying to withdraw what has remained of their deposits in spite of the increase of the monthly interest rate by 13% as of Monday. Once withdrawn from the bank, most of the leva enter foreign exchange offices and the rest is exchanged for commodities, bank sources say. Dealers say an ever increasing number of companies are buying dollars to make sure they will continue to operate even if some day dollars become unaffordable.

Central bank Governor Lyubomir Filipov said financial stabilization can be expected in a month and a half provided that a broad-coalition government is appointed within a week and negotiations with the IMF start within two weeks.

[11] 24TH DAY OF PROTESTS AGAINST RULING SOCIALISTS

Continuing their daily protests, Sofia students gathered for a concert at the St. Kliment Ohridski University; they organized a torchl-ight march and other happenings. Protesting students in Plovdiv (South Central Bulgaria) organized a round the-clock watch at the local BSP headquarters. Meeting with students' leaders on Wednesday, Nikolai Dobrev pledged he would not allow the police to beat protesting students, Svetoslav Spassov, member of the leadership of a studentsí coordination group, told a news conference. He said the outgoing interior minister had stated he understands and supports the students' protest. Dobrev also said that one party alone could not pull Bulgaria from the crisis, admitting the failure of the BSP, according to Spassov.

Local correspondents of BTA reported that road accidents with protesters caused traffic jams on roads and at some checkpoints on Bulgaria's borders with Macedonia and Greece. "There is no permission for these protests, they are unlawful," the BTA correspondent in Blagoevgrad, Southwest Bulgaria, cited local Police Director V.Dimitrov. The Blagoevgrad police issued a declaration calling upon people in the region to keep law and order. "The trade unions cannot control people's discontent, which they demonstrate by civil disobedience," Iren Zafirova, head of the Podkrepa Labour Confederation strike committee, told journalists Wednesday.

Leaders of the opposition addressed the daily protest rally in Sofia. "They [the BSP] cannot accept the simple truth that the dollar got mad because Bulgaria does not believe in a second Socialist government," said Ivan Kostov, Chairman of the UDF, the largest opposition force in Parliament. Taking the floor, an MP of the Popular Union demanded to call to account the members of the outgoing Socialist cabinet, in particular the ministers of health, of education and of labour and social affairs. "Since last night Nikolai Dobrev has been desperately trying to invite the opposition to talks on forming a coalition government but we will not accept any proposal, " UDF leader Kostov said. "Never", the rally- goers chanted.

Protest rallies were held in other cities and towns. In Sliven (Central Bulgaria) the protesters burned publicly the short-term stabilization programme proposed by the Socialist premier-designate. In Vidin (on the Danube) rally-goers put an effigy of Mimi Vitkova to fire.

The Coordination Council of the Union of Democratic Women in Plovdiv (South Central Bulgaria) issued a declaration demanding to restore constitutional order in the country. "The MPs who call for unrest and chaos and escalate tension must be taken away from streets and squares," the declaration says. For the sake of Bulgaria, the Union calls on the MPs to support the premier- designate of the Left, Nikolai Dobrev, and the cabinet he was asked to form by President Peter Stoyanov Tuesday.

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