News from Bulgaria / Nov. 15, 95

From: bulgaria@access1.digex.net (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

CONTENTS

[01] PM ZHAN VIDENOV ADDRESSES OSCE SEMINAR ON TRANS-EU

"There is no doubt that the growing interdependence among states and their economies, in particular through developing infrastructures and the ever closer cooperation between neighbouring countries, are key factors for stability in any region and in Europe as a whole. Moreover, a well-developed infrastructure corresponding to the new economic conditions could be a basic prerequisite for the successful integration of the economies in transition into the world economy, " Videnov said. According to him, one could not imagine any further progress of the states in the Black Sea region without joint and coordinated efforts, aimed at establishing modern transportation networks and most effective communications and energy systems, meeting the highest world standards.

The Prime Minister stressed Bulgaria fully supports the conclusions of the Second European Conference of Ministers of Transport in Crete in March 1994, and its recommendations for harmonious and efficient development of infrastructure in conformity with present conditions and trends, taking into consideration the interests of each state in the context of the European integration process.

"We therefore attach a particular importance to the present seminar, and do hope that you will make every effort for the joint search of specific ways for the improvement of infrastructure in the Black Sea region in the fields of transport, telecommunications and energy, taking into consideration requirements for protection and rehabilitation of the environment, " Videnov said. He also said Bulgaria is not seeking unilateral benefits, but is striving for mutually acceptable, balanced and efficient solutions to the problems of all countries concerned. According to the Bulgarian Prime Minister, there are practically unlimited opportunities to identify projects of mutual interest, both to the states on whose territories they could be accomplished, and to donor countries and investors. "Examples exist where agreement has already been reached on preliminary projects, which are at the stage of feasibility studies, " Videnov observed, hoping the seminar will contribute to the acceleration of their practical implementation. The Prime Minister dwelled on the unsatisfactory state of Bulgaria's infrastructure in comparison to other countries of Central and Eastern Europe. Videnov said that the situation in Bulgaria was further complicated by its strict observation of the sanctions imposed by the UN Security Council on the FR of Yugoslavia and by the conflict in the former Yugoslavia which isolated this country from its main European partners. Stressing that the Bulgarian Government attaches primary importance to the activities to follow the meeting, the Prime Minister said that it would be appropriate to consider and outline the possibilities to convene at a later stage a meeting at the respective political level from the countries of the Central European Initiative and the countries participating in Black Sea Economic Cooperation. "Bulgaria is prepared to work for synchronizing efforts at subregional level for developing infrastructural projects through its territory, taking into account the interests of the individual states and in the context of European integration. In this respect we will support an institutionalization of such efforts, " Prime Minister Zhan Videnov said in his statement.

[02] OSCE SEMINAR ON ROLE OF TRANS-EUROPEAN INFRASTRUCTURE BEGINS

Sofia, November 15 (Iva Toncheva of BTA) - A three-day seminar on "The Role of Trans-European Infrastructure for Stability and Cooperation in the Black Sea Region" under the auspices of the Organization for Security and Cooperation in Europe (OSCE) opened here today.

Attending are delegations of 54 countries, 17 international organizations including the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, and business circles.

In the course of three days, the participants will openly discuss key aspects of the development of trans-European infrastructure in transport, communications and energy, and their role for economic and social progress of the nations of the Black Sea region. The seminar is expected to help promote cooperation between all countries concerned, international economic and financial institutions and private companies with a view to the implementation of existing projects for infrastructure upgrading and development.

The seminar is held at the initiative of the Bulgarian government and under a OSCE decision.

The seminar was addressed by Bulgarian President Zhelyu Zhelev and Prime Minister Zhan Videnov. Both speakers stressed in their addresses the significance of the forum.

"It is not by chance that all Bulgarian state institutions pay attention to the programme for development of the national infrastructure drawn up with a view to Euro-integration, " President Zhelev said. He stressed that the development of a modern transport and communications structure will undoubtedly have an enormous political effect for the Balkans. "It [the infrastructure] can provide a long-term strategy for the lasting peace and understanding that the Balkans, Europe and the world need. The question is whether there is a political will for partnership and goodneighbourliness in this region. My answer is 'yes', " said the Bulgarian President adding he was encouraged to say this by the declaration the leaders of Albania, Bulgaria, Macedonia and Turkey signed several weeks ago in New York pledging to support with political means the project for a transport corridor from Western to Eastern Europe, believed to be one of the most urgent projects. Dr. Zhelev further said he was also encouraged by Bulgaria's constructive stand in the negotiations with its southern and northern neighbours on the construction of a second cross-Danubian bridge and on the opening of new border crossings on the Bulgarian-Greek border. "Noone in Bulgaria underestimates the importance of other projects under discussions, such as, for example, the link between the Baltic region and the Mediterranean or cooperation within the framework of the Danubian commission, " Dr. Zhelev said in his address.

"We could not imagine any further progress of the states in the Black Sea region without joint and co-ordinated efforts aimed at establishing modern transportation networks and most effective communications and energy systems meeting the highest world standards, " Prime Minister Videnov said in his address. He hailed the conclusions and recommendations of the Second European Conference of Ministers of Transport held in Crete in March 1994. "We believe that there are practically unlimited opportunities for drawing up projects that are mutually beneficial: both for the countries on whose territory they could be implemented and for the investors, " Zhan Videnov went on to say. He stressed that at the Bulgarian delegation at the seminar is ready to discuss, among other things, various possibilities for development of infrastructure projects in the period of post-conflict recovery of the region. "We are prepared also to make our contribution in other fields of economic development and it strengthening stability in Central and Southeastern Europe.

The forum was also addressed by Andre Erdos, Deputy State Secretary of the Hungarian Ministry of Foreign Affairs and Personal Representative of the Chairman-in-Office of the OSCE. He hailed the participation in the seminar of international economic and financial institutions and voiced a conviction that their contribution in the discussions will live up to the expectations.

The participants in the forum were also addressed by Ives Berthelot, Executive Secretary of the UN Economic Commission for Europe. He conveyed the greetings of the UN Secretary General and his wishes for success of the forum.

Addresses were delivered on behalf of the European Union, by representatives of Spain which is currently holding the rotating presidency of the EU, of Germany, Italy, France, Belgium, Turkey, the Netherlands, Slovakia and Romania.

The first day of the seminar will discuss the present status of existing infrastructure projects - short, medium and long-term ones - and identification of future possibilities for developing and modernizing infrastructure in the field of transport, communications and energy in the Black Sea region.

[03] MEETINGS

Prime Minister Zhan Videnov met with Charles Meissner, US Assistant Secretary for International Economic Policy. The talks focused on the importance of infrastructures for uniting the economic potentials of countries in regional and transregional terms and for ensuring economic growth. The sides noted the unique role of the forum of the Organization for Security and Cooperation in Europe in discussing economic, political and national security issues. Zhan Videnov stressed the great importance which Bulgaria attaches to infrastructure projects in the process of the country's integration into the European structures. The Prime Minister familiarized Charles Meissner with the progress of negotiations for Bulgaria's accession to the World Trade Organization.

[04] PARLIAMENT PASSES SOCIAL SECURITY FUND ACT

The Social Security Fund (SSF) will be managed by a National Insurance Institute (NII) that will report directly to Parliament. The SSF will take over all assets and liabilities of the state social security system that has existed to date. The fund is financed from mandatory pension and short-term insurance contributions, from the budget (for the payment of certain benefits), from property proceeds, donations, fines and other. The central bank and Finance Ministry will name the banks to operate with the fund.

The NII will get ownership over buildings for administrative activities as provided for by the law on confiscation of property of former totalitarian organizations, including the Bulgarian Communist Party, the Bulgarian Agrarian Union, the Fatherland Front, and other. The NII will also become owner of the facilities of the Social Recreation Service.

At the proposal of Labour Minister Koralski, texts providing for the setting up of funds for voluntary additional insurance dropped from the final version of the law. He said this matter will be regulated by a separate law.

[05] ICFTU SECRETARY GENERAL BILL JORDAN ENDS VISIT

Sofia, November 15 (BTA) - Before his departure from Bulgaria Mr Bill Jordan, Secretary General of the International Confederation of Free Trade Unions (ICFTU), told a news conference that his today's meeting with Prime Minister Zhan Videnov may become the first constructive step in the dialogue between the Government and the trade unions in Bulgaria. After his meeting with PM Zhan Videnov, Mr Jordan commented that improvement of the dialogue between the trade unions and the authorities in Bulgaria is quite possible. The trade union leader arrived in Sofia yesterday at the head of a ICFTU delegation at the invitation of the influential trade union amalgamations "Podkrepa" and the Confederation of Independent Trade Unions in Bulgaria (CITUB). The visit was intended to familiarize the foreign labour leaders with the social economic situation in Bulgaria and with the relations between the trade unions and the Cabinet. It is also in connection with CITUB's application, backed by Podkrepa, for membership in the ICFTU, Podkrepa's press office told BTA. This May the two trade union amalgamations signed an agreement for joint actions after five years of alternating good relations and conflicts. Mr Jordan told reporters that he had assured Mr Videnov of the readiness of the Bulgarian trade unions to do their best and improve their relations with the Government in the name of Bulgaria's economic prosperity. He said he had called on to the Prime Minister to take personal initiatives to this effect. According to ICFTU leader, Bulgaria cannot possibly cope with the crisis unless the tripartite cooperation between employers, trade unions and government is improved, with the Government taking an active role in this process. The ICFU has committed itself to persuade the Bulgarian Government into delivering to the labour organisations the property of the former state-controlled trade unions, which was nationalized under the 1991 Act on the property of political parties and organisations, Mr Jordan also said. (In 1993 the Constitutional Court repealed acts of the Government which distributed this property among the state (10 per cent), the Podkrepa Labour Confederation (35 per cent) and the CITUB (55 per cent). According to ICFU leader, in the talks with Bulgaria's Prime Minister and President, they have agreed that the trade union property issue was an obstacle to warming the relations between the Government and the labour organisations. "Today's meeting of Mr Jordan with PM Videnov was intended to support Podkrepa and the CITUB in their bare-faced robbery of trade union property, " Mr Pancho Moutafchiev, Vice President of the National Labour Union, which has not been recognised by any post-totalitarian Government. According to Mr Moutafchiev, the property should be delivered to the social funds so that it is protected from misuse.

[06] DEPUTY PM TSOCHEV'S VISIT TO MOSCOW

[07] INTERDEPARTMENTAL FOREIGN INVESTMENT COUNCIL HOLDS MEETING

Sofia, November 15 (BTA) - Chaired by Deputy Prime Minister and Minister of Economic Development Roumen Gechev the Interdepartmental Council for Foreign Investment held a regular meeting today. The meeting discussed changes in the system of reporting the foreign investment, moved by the National Statistical Institute. Investment projects, presented by the Bulgarian Telecommunications Company were also on the agenda. The Chairman of the Interdepartmental Council for Foreign Investment Roumen Gechev familiarized the participants with suggestions for holding a forum on investments in Bulgaria, as well as with the prospects for future participation of the European Bank for Reconstruction and Development (EBRD) on the Bulgarian insurance market. It was suggested that a framework draft agreement be worked out for the protection and encouragement of foreign investment, one that will comply with all pertinent international agreements and conventions, to which Bulgaria is a signatory.

[08] BUNDESTAG FOREIGN POLICY COMMITTEE CHAIRMAN IN SOFIA

Sofia, November 15 (BTA) - Dr. Karl-Heinz Hornhues, Chairman of the Foreign Policy Committee of the Bundestag today met Bulgarian President Zhelyu Zhelev and Prime Minister Zhan Videnov. The guest arrived on a two-day visit here yesterday. Dr. Hornhues was particularly interested in Bulgaria's Balkan policy. Dr. Zhelev stressed that this country has signed interstate treaties with all neighbouring countries except for the Federal Republic of Yugoslavia and Macedonia. The treaty with Yugoslavia was shelved for obvious reasons: it is subject to UN sanctions which Bulgaria strictly implements. The only obstacle for the signing of a treaty with Macedonia was of linguistic nature [Bulgaria and Macedonia fail to come to a common understanding on the existence of Macedonian language], Dr. Zhelev told the guest.

The meeting also highlighted Bulgaria's future accession to the European Union. "The negotiations procedure for Bulgaria's EU membership will be a long one because all 15 EU member states should give their consent, " journalists were told after the meeting by Parliamentary Foreign Policy Committee Chairman Nikolai Kamov, who also attended the meeting.

Dr. Hornhues was received by Prime Minister Zhan Videnov as well. Videnov familiarized the guest with the Cabinet's programme for Bulgaria's integration into European structures, transboundary projects in the filed of transport, telecommunications and power generation.

The guest was also briefed on the concrete steps the Bulgarian government and Parliament has taken with a view to Bulgaria's integration in Europe, said the cabinet's press office.

As regards regional policy, reaching a peaceful solution to the Yugoconflict is vital for speeding up the integration processes in the Balkans, according to Zhan Videnov.

The German MP voiced a readiness to speak up for Bulgaria's exclusion from the EU visa blacklist before the Bundestag.

He further inquired into the situation at the Kozlodui Nuclear Power Plant, on the Danube. "Bulgaria will try to keep apace with the highest standards for safety of nuclear power production, " Zhan Videnov is quoted as saying at the meeting. He also said that Bulgaria relies heavily on assistance from interested countries, including Germany, for the launch of safety checkups at the Kozlodui N-plant next year, that will be complex and expensive. The Prime Minister reportedly said that the government has introduced at Parliament an energy strategy that gives priority to nuclear power production.

At a meeting with MPs of the Parliamentary Foreign Policy Committee, Dr. Karl-Heinz Hornhues reportedly said an EU intergovernmental conference will open next year and is likely to continue at least an year. He believes that positive results can be expected for Bulgaria in early 1997. Only then will specific negotiations with the 15 EU member states for the admission of new members, be possible. According to the guest, priority will be given to countries than have been longer on the EU membership waiting list. Turkey, for example, has been waiting to enter the EU for nearly 20 years now.

The German MPs had more meetings at the Bulgarian Foreign Ministry. Later this afternoon he had talks with the floor leaders of the opposition Union of Democratic Forces. The visit ends tomorrow.

[09] BUSINESS PRESS

Budget to Rescue Insolvent Banks with Our Money", runs a front page headline in "Demokratsiya". Losses in the financial sphere increased by 402% in the past six months alone, this daily writes citing Reuters. According to sources cited by Reuters, extended credits total USD 4, 800 million or 40% of the Gross Domestic Product (GDP). That is why experts believe that the financial sphere is on the verge of collapse, "Demokratsiya" writes.

By November the foreign exchange reserves of the National Bank of Bulgaria totalled USD 1, 500 million, "Standart News" writes citing a press release of the bank's "Foreign Exchange Operations" department. This is USD 39 million up from the previous month.

Bulbank started selling dollars to the central bank, "24 Chassa" wrote citing dealers. The purpose is to increase the capital of the bank in implementation of a decision of the general meeting of shareholders. The dollars will enter the market gradually so as not ton influence it, according to Bulbank chief Chavdar Kunchev, cited by the daily.

Balkan Airlines is urgently repaying its debt to Eurocontrol, controlling flights in Western Europe, "Standart News" writes citing the Ministry of Transport. This is the condition for the release of a Balkan aircraft arrested in London two days ago, this daily explains. Balkan Airlines is expecting a USD 25 million budget subsidy and a USD 45 million credit from the State Fund for Reconstruction and Development.

"Troud" reports of the request of The Economic Bank to declare the Dounavia canning factory in Rousse bankrupt. The factory owes this bank almost 30 million leva and according to experts its debts total almost 390 million leva. According to the manager of the factory, Alexander Maksimov, the state of the factory may be stabilized if the state forgives it its bad debts and extends a new credit of USD 3 million. Another possibility is the opening of a privatization procedure offering 60% of the factory for sale.

The Chimco chemical works in Vratsa (Northwestern Bulgaria finally repaid the principal of its debt to Bulgargaz, the press reports, citing the management of the company. An agreement has also been reached on the payment of interests amounting to USD 1, 200 million. The interests are to be repaid by January 1997.