Bulgarian Telegraph Agency (BTA), 97-02-04

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

4 February, 1997

CONTENTS

[01] FLASH: DOBREV RETURNS MANDATE. AGREEMENT ON EARLY ELECTIONS REACHED.

[02] LEFT APPROVES SECOND CABINET. PREMIER-DESIGNATE STANDS FOR COALITION GOVERNMENT

[03] OPPOSITION REFUSES OFFER TO TAKE PART IN A COALITION CABINET

[04] WE WANT TO FIGHT CRIME, NOT CIVILIANS, POLICE CHIEF SAYS

[05] MEDICINES BECOME UNAFFORDABLE

[06] FAMINE THREAT

[07] HALF OF BULGARIANS SUPPORT CURRENCY BOARD

[08] NEW RUSSIAN AMBASSADOR SUBMITS CREDENTIALS

[09] HYPERINFLATION A FACT, ADMIT POLITICIANS, MINISTERS

[10] SIXTH DAY OF NATIONAL STRIKE

[11] ONGOING PROTESTS

[12] BULGARIAN ORTHODOX CHURCH BACKS PROTESTS

[13] RUSSIAN PARLIAMENTARY DELEGATION VISITING

[14] IMF, CENTRAL BANK DENY PRESS REPORT THAT BANK DEPOSITS WILL BE BLOCKED

[15] MEETING OF PRESIDENT'S ECONOMIC COUNCIL

[01] FLASH: DOBREV RETURNS MANDATE. AGREEMENT ON EARLY ELECTIONS REACHED.

[02] LEFT APPROVES SECOND CABINET. PREMIER-DESIGNATE STANDS FOR COALITION GOVERNMENT

Seven of the ministers in Dobrev's prospective cabinet would keep the posts they held in the Videnov cabinet, another three were deputy ministers in it. Three deputy prime-ministers were named: Georgi Pirinski (who would also keep the foreign affairs portfolio), Atanas Paparizov (who would remain minister of trade and foreign economic cooperation), and Nikola Koichev (now Left MP and Chairman of the Economic Committee, is to be concurrently minister of labour and social affairs). Five members of the former cabinet would keep their jobs: Dimiter Kostov of finance, Krustyo Trendafilov of agriculture, Roumen Ovcharov of energy, Ivan Marazov of culture, and Georgi Georgiev of the environment. General Lyuben Petrov (Ret.), Chairman of the parliamentary Committee on National Security and former chief of General Staff of the Army, is nominated to head the Ministry of Defence. Three incumbent deputy ministers are to take over from their chiefs: Lyuben Kornezov of justice, Svetla Toshkova of transport, and Lyuben Petrov of regional development and construction.

Although the Left approved the composition of the cabinet named by Dobrev and Parliament is expected to vote it on Wednesday, Dobrev himself still believes that the country needs a broad-based coalition government. "I still think that Bulgaria's problems are so complicated and the future we are in for so hard that the political forces must find a formula and form a cabinet which will show signs of stability and consensus both in the country and outside it," Nikolai Dobrev stressed speaking to journalists.

At his news conference Dobrev paid special attention to the nationwide wave of protests. "I say 'yes' to just protests, 'yes' to any protests staged within the framework of the law because this is a democratic practice and it should be encouraged... But civil disobedience is something lying outside the law," Dobrev pointed out. In his words, no country in a deep crisis could afford civil disobedience. "Civil disobedience is made use of by criminals, thieves and profiteers. And it is the organizers of the civil disobedience who bear responsibility for it," Dobrev said. "Let the protests be held in the forms allowed by the law," was the appeal which Dobrev made.

[03] OPPOSITION REFUSES OFFER TO TAKE PART IN A COALITION CABINET

According to the opposition, during the seven-day time limit which the prime minister-designate has to explore the opportunities for forming a government, the Left has no right to name a different candidate for the prime ministership and even less so relinquish this right in favour of another parliamentary group. The opposition leaders argue that Nikolai Dobrev should decline the mandate, and after that only the President will be competent to ask another political force. In conclusion the United Democratic Forces declared they refuse to play along with the "Socialist Party in its dubious backstage games for formation of a broad-based coalition government."

The opposition leaders also decided that the opposition will be the guarantor and assume political responsibility for all just and peaceful protests and manifestations of civil disobedience. The opposition called on protestors and law enforcers not to yield to provocations and to avoid violence. The opposition asserted in its decision that "the Bulgarian Socialist Party's statements and actions deliberately provoke an escalation of tensions in this country" by "expressing readiness to form a second socialist government while being aware that this might lead to violation of civil peace and to bloodshed." The opposition leaders called on each one of the Left majority MPs to vote against a second Socialist government.

[04] WE WANT TO FIGHT CRIME, NOT CIVILIANS, POLICE CHIEF SAYS

Gen. Marinski called upon President Peter Stoyanov, the political forces and state institutions to summon a sitting of the Consultative Council on National Security with public participation to provide preconditions for preserving public peace and preventing violence. "We want to make sure the crisis is not fought with the instruments of violence and lawlessness, but through civilized dialogue," said Gen. Marinski.

He said in the current situation of mass protests the Interior Ministry bodies are doing their best to carry out their legal obligation, ensure public order and prevent violent clashes. He warned the deployment of larger troops to ensure public peace is an impediment for the combat against crime and it has been on the rise recently. Speaking on behalf of the Interior Ministry, he called for the support of political forces, MPs, the prosecution, district governors, mayors and the organizers of the protests in making sure the protests do not go beyond the legal bounds. "We call upon all people in the country to prevent the use of violence that will make the situation difficult to handle. Do not place the Interior Ministry bodies between law and the civil protests. Police serves all and must not be used in pursuing political goals," said he.

[05] MEDICINES BECOME UNAFFORDABLE

The ordinance on free supply of medicines is totally inapplicable. The Medika municipally-owned company paid more than 3 million leva for the purchase of life-saving medicines. Medika provides free medicines to people suffering from cancer, epilepsy and mental diseases. The municipality has refunded only 850,000 leva and the company will stop performing this service. There are not enough life- saving and supporting medicines in the country's chemists. This affects mostly people suffering from cancer, diabetes, heart diseases and pregnant women. There is a shortage even of basic drugs. The price of aspirin, analgin and antipyretics is rising very day.

The Union of Pharmaceutists in Bulgaria (UPB) proposed to name the prices of the Bulgarian medicines in hard currency. According to the Union, the other possibility involves liberalizing of the drug prices. The UPB says that if either of these measures is not taken the pharmaceutical market will collapse, this will have fatal consequences for the population's health and the responsibility will rest with the Health Ministry.

According to an expert of the Drugs Wholesalers Associations, the medicines are expensive because there is no health insurance fund. The fund should be set up immediately, according to him. The Association and the UPB are unanimous that a health-care fund should be set up with the Health Ministry and revenues from the duties on imported medicines should be contributed to it.

[06] FAMINE THREAT

Over the last two weeks government-monitored prices - foods and fuels - soared by the record high of 31.8%. The murderous hike of foreign exchange has also emptied pharmacies, said the Pharmacies Directorate. Thousands of grocery shops are closing down, while others sell only bread and milk. The longest lines are for bread in spite of the daily adjustments of its price. The situation is further aggravated by the depleting grain stocks after a bad year's harvest. Thefts of bread and other foods are frequent.

The so called "suitcase trade" is getting busier and semi-legal peddlers of consumer goods are waiting on long lines to cross the border into Serbia to cash in on retail price differentials. Clothes, household appliances furniture and the like stay long unsold and the longer they stay the more expensive they get, re-priced to the US dollar. Many people admit they survive only thanks to help of relatives in the countryside who have tinned food for the winter.

[07] HALF OF BULGARIANS SUPPORT CURRENCY BOARD

The Gallup pollsters also found that 59.6% of Bulgarians describe the outgoing government of Prime Minister Zhan Videnov as the worst after the launch of democratic changes in 1989. The caretaker cabinet of prime minister Reneta Indjova that served for only three months in 1994 gets a 15.8% approval rating, the highest of all. Next on the governments list with 15.7% approval and 15.1% disapproval rating is that of the anti- Communist Union of Democratic Forces headed by Filip Dimitrov that served in 1991-92. The coalition government of independent Dimiter Popov that held office in 1991 gets 4.8% approval and 0.8% disapproval. The 1992-94 coalition government of independent Lyuben Berov gets 3.3% approval and 1.4% disapproval.

The respondents in the poll say no government deserves to be described as "the best".

[08] NEW RUSSIAN AMBASSADOR SUBMITS CREDENTIALS

The Russian Ambassador said he will study the Bulgarian position on NATO's expansion, an issue to which Russia is very sensitive. After having discussed with President Stoyanov the issue, ambassador Kerestedjiyanz said he found no elements of anti-Russian sentiments in any of the views of Bulgaria in favour of joining NATO.

The future of the Topenergy joint venture is a purely pragmatic issue, said the diplomat adding that the project is equally important for Bulgaria and Russia, for Russia because it will be a gas supplier to Western Europe, and for Bulgaria because soon it will not be able to pay market prices in hard currency for the gas deliveries. He also said the project gives Bulgaria additional opportunities for gas supplies.

[09] HYPERINFLATION A FACT, ADMIT POLITICIANS, MINISTERS

[10] SIXTH DAY OF NATIONAL STRIKE

A transport strike was called this morning in the second largest city of Plovdiv (southern Bulgaria). All roads into the city were blocked. A one- hour transport strike was staged in Pernik, west of Sofia. An intersection in Yambol (southern Bulgaria) was blocked for several hours. Similar reports also arrived from other cities nationwide. There are reports of blockades at several border checkpoints. Only those on urgent trips and vehicles carrying food were being allowed to pass. The intersection near Danube bridge in Rousse (northeastern Bulgaria), the Rousse-Sofia, Rousse- Silistra and Rousse-Varna international roads were blocked for several hours in the morning. If the political stalemate persists, air traffic controllers at Sofia airport will go on strike, nation radio reported. If the Socialists do not decline to form a cabinet, flights may be stopped for several hours Tuesday.

On Monday strikes were staged at Neftochim, the largest state-owned oil refinery in Bourgas, all mines and many transport companies. Dockers of the ports of Varna and Bourgas were also on strike. A one- hour strike will be staged at Sofia Airport on Tuesday. The strikes are organized by three unions: Promyana, Podkrepa and the Confederation of Independent Trade Unions in Bulgaria (CITUB). Dockers at the port of Bourgas staged a one- hour strike on Monday. The strike committee warned the port will be closed on Tuesday. An indefinite strike continued at the Vazov Engineering Works of the military- industrial complex. Many schools remained closed. Medics and municipal officers also staged protests.

[11] ONGOING PROTESTS

"February 4th is the last day on which the BSP can do something for Bulgaria's good - that is to go. If it doesn't go, we will make no deals with them," Teodor Dechev, Deputy Chairman of the extraparliamentary Bulgarian Social Democratic Party, said addressing the rally. The Free Speech Forum, an organization of journalists fighting censorship, supported the protests of the opposition.

As usual, students marched along Sofia's streets holding their daily procession and joined protesters who had blocked a number of intersections in Sofia earlier on Monday. Only ambulances, police cars, hearses and trucks carrying flour were allowed passage.

[12] BULGARIAN ORTHODOX CHURCH BACKS PROTESTS

[13] RUSSIAN PARLIAMENTARY DELEGATION VISITING

"We have always felt Bulgaria close, but you should agree that in the recent years our relations were rather contradictory," said Baburin at his meeting with the Parliamentary Group for Friendship between Bulgaria and Russia. In Baburin's view many opportunities have been missed in the two country's economic cooperation. He cited as an example that the Bulgarian side has been delaying for nearly an year its decision on the Russian proposal on the project of a Novorosiisk - Bourgas -Alexandrpoulis oil pipeline. Russia will be compelled to realize this project jointly with Turkey although it will become more expensive, the Deputy Chairman of the State Duma noted.

The guest said that Russian has budgeted 400 million US dollars in technical loans to Bulgaria for 1997. The Russian side considers the possibilities of Bulgarian goods to re-gain their positions on the Russian markets. The lowering of customs duties charged by Russia on Bulgarian imports was on the agenda of the talks between the Russian parliamentary delegation and Deputy Foreign Minister Ivan Hristov.

[14] IMF, CENTRAL BANK DENY PRESS REPORT THAT BANK DEPOSITS WILL BE BLOCKED

"In his recent letter to President Stoyanov the Managing Director of the IMF, Mr. Camdessus, indicated that the Fund is ready to help Bulgaria stop the current deterioration of economic conditions.

"This remains true. At the same time we wish to state clearly that there is no truth in the report, published in the press on Sunday, that the Fund has developed or discussed an emergency plan for Bulgaria."

The economic weekly "Capital Press" headlined the lead story in its latest issue "IMF Readies Emergency Measures for Bulgaria." According to the newspaper, the measures envisaged a "bank holiday," i.e. suspension of the operation of the banking system for a definite period or restricting depositors' access to their money with the banks as a way of containing the pressure of depreciation on the national currency.

The National Bank of Bulgaria (BNB) also denied the reports that such measures will be introduced. In a press release received at BTA the central bank observes that the "BNB Governing Board, within its vested powers, will defend the interests of the Bulgarian depositors and will not allow the taking of non-transparent and non-market actions against them, including the blocking of deposits."

[15] MEETING OF PRESIDENT'S ECONOMIC COUNCIL

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