News from Bulgaria / Dec. 22, 1995

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] BULGARIA STATES POSITION AT CONFERENCE ON BOSNIA

The Bulgarian representative at the conference, Irina Bokova, Council of Ministers Secretary for European Integration and First Deputy Minister of Foreign Affairs, hailed the initiatives of the European Union and the World Bank to start the reconstruction of Bosnia and expressed Bulgaria's readiness to participate in the implementation of the programme by supplying goods and services. Bulgaria is willing to cooperate in the carrying out of both the three- month urgent programme for the rebuilding of Bosnia and in the 1996-1999 one, the announcement of the Bulgarian Ministry of Foreign Affairs says.

The participants in the conference were informed about the Bulgarian Government decision to support donors' efforts, providing at least one million leva for the reconstruction of Bosnia and Herzegovina in addition to its humanitarian aid. World Bank Vice President Kemal Dervis highly commended the decision of the Bulgaria Government, made despite the large economic losses Bulgaria suffered as a result of the Yugoembargo.

[02] PRESIDENT ZHELEV CONGRATULATES SPAIN AT THE END OF ITS EU PRESIDENCY

The Bulgarian President congratulated Spain for its successful presidential mandate. He praised the new programme for cooperation between the United States and the European Union, which emphasizes that EU and NATO share the same values and priorities. President Zhelev underlined the importance of the new type of agreement relations between the EU and MERCOSUR.

Dr Zhelev particularly emphasized the significance of the EU summit in Madrid at which Bulgaria presented its application for full EU membership.

In conclusion the Bulgarian head of state voiced his conviction that Bulgaria may be a worthy partner of the EU in its efforts to achieve lasting and peaceful solution of the conflicts in Southeastern Europe. The hopes for peace in the region were further raised as a result of the successful operations of EU and NATO after the signing of the peace agreement for former Yugoslavia, President Zhelev said.

[03] PRESIDENT HAS THE RIGHT TO POLITICAL STATEMENTS

The case was filed by 56 Socialist MPs challenging the constitutionality of public statements by the President calling on voters to support a certain political figure or party. It was occasioned by a statement made by President Zhelev calling on Sofianites to vote for the mayoral candidate of the Union of Democratic Forces, Stefan Sofiyanski. The statement was made in the run-up to the second ballot in the local elections. Then MPs of the ruling Bulgarian Socialist Party (BSP) said they would approach the Constitutional Court after the elections.

The BSP MPs also requested that the Constitutional Court rule whether the President's public statements indicating preferences for a certain political figure or party violate the Constitution. The MPs invoked a provision in the Constitution which says that the President "shall embody the unity of the nation". Parliament and the President were constituted as parties in the case, who were legally bound to submit their statements before the Constitutional Court.

In his statement to the Constitutional Court, President Zhelev said that the claim was legally untenable. "The President embodies the unity of the nation but a head of state has political functions as well. As such the President is entitled to express his political attitudes and make political statements," President Zhelev wrote in his statement to the Constitutional Court.

Another argument cited by the President against the Constitutional Court's hearing of the case was that "it is absurd and even harmful to claim that the head of state is something different, separate and 'above' or 'below' political life and the institutions in this country. "The Constitution can be violated by action or inaction, but not verbally," the President also stressed in his statement.

[04] COUNCIL OF MINISTERS DECISIONS

Cabinet ministers adopted amendments to a 1991 decree for payments on the export and import liquidation accounts in transferable roubles with the member-countries of the former council for mutual economic assistance. At present Bulgaria has unsettled trade deficit with Poland - 125 million, Hungary - 86 million, Romania - 20 million, Mongolia - 10 million and the former german democratic republic (GDR) - 531 million, reads a Government press release. As far as trade deficit with former GDR is concerned negotiations on the recognition of mutual debts are still in progress, the Government Spokesperson said. According to the newly adopted amendments, one rouble exchanges for five leva rather than for 3.50 leva as it was so far. The agreements on mutual payments in transferable roubles were signed on government level in 1990-1991 and since then the exchange rate has not been changed.

The Government sanctioned Russian military ships to call at the Varna Port (on the Black Sea) for repairs in the Flotski Arsenal Shipyard-Varna. The ships should not carry arms and surveillance equipment on board.

[05] GOVERNMENT APPROVES LOAN TO STATE RAILWAYS

Investment into BDZ rehabilitation projects totals USD 296 million, of which USD 170 million will come from international financial institutions. The World Bank will grant a USD 95 million loan for a term of 20 years with a grace period of five years and the EBRD will extend the BDZ USD 45 million for a term of 15 years with a three year grace period. In addition, the BDZ will receive export credits of USD 12 million and the EU PHARE programme will grant it USD 18 million in gratuitous aid.

The BDZ rehabilitation programme covers the 1996- 1998 period and provides for the financial stabilization of the railways, introduction of modern technologies, upgrading of railway lines, the construction of security installations, new communications, etc.

The documents approved by the Government today will be submitted to Parliament for ratification.

[06] SERB ENVIRONMENT MINISTRY DELEGATION VISITS SOFIA

The talks also considered certain aspects of the multilateral cooperation in the field of environment protection.

[07] BULGARIAN, ROMANIAN INTERIOR MINISTRIES SPECIFY

The protocol specifies the guidelines of joint work between the two interior ministries set in the agreement signed in February 1992, Nachev said at a news conference. Taracila expressed the hope that the visit and the protocol would yield immediate results.

The protocol provides for cooperation in preventing the smuggling of excise goods and stolen cars, illegal movement of people and illegal migration, illegal drugs and narcotics and illegal operations with ammunition, arms and radioactive substances. The protocol regulates the interaction between the two ministries in combating business fraud and in guarding the state borders.

The new forms of crime necessitated an updating of the texts of the agreement which was signed some four years ago, Interior Minister Nachev explained. According to Romanian Interior Minister Taracila, the signed protocol removes all intermediate forms and makes it possible for the experts of the interior ministries of the two countries to carry out joint activities and exchange information on concrete forms of crime.

Interior Minister Nachev said that a meeting of experts will be held in January on illegal movement of people and the guarding of the state border between Bulgaria and Romania. It has been provided for holding such meetings every six months. He stressed that there is good cooperation between the Bulgarian and Romanian regional police and border troops units.

[08] BULGARIAN-INDIAN POLITICAL CONSULTATIONS END

Mr Grover also conferred with Foreign Minister Georgi Pirinski. According to a Foreign Ministry press release, the two sides stressed the wish of their countries to activate political dialogue. According to them, a meeting between the foreign ministers and the prime ministers of the two countries would play an important role in this respect as well as meetings between parliamentarians of the two countries. These meetings could complete the legal framework of bilateral relations. One of the most important documents which could be signed is an agreement of reciprocal investment protection and promotion. Mr Grover informed Foreign Minister Pirinski that representatives of leading Indian companies will visit Bulgaria to study possibilities for investment early next year.

The forthcoming session of the Bulgarian-Indian Commission of Economic and Scientific and Technological Cooperation was in the focus of today's meeting between Indian Deputy Foreign Minister Vinod Grover and Bulgarian Deputy Prime Minister and Minister of Trade and Foreign Economic Cooperation Kiril Tsochev.

According to a Council of Ministers press release, the Indian side expressed readiness to take part in the process of privatization in Bulgaria after making the respective inquiries.

[09] PARLIAMENT PASSES NEW STATE FINANCIAL CONTROL ACT

The main task of state financial control under this act is to protect the property interests of the state and the municipalities. State financial control includes possibilities for making inquiries into liabilities to the national budget without duplicating the work of the tax administration.

The new act broadens the scope of state financial control which so far covered only state-owned enterprises. Now it also includes joint-stock companies, cooperatives, non-profit partnerships and foundations, regardless of the source of their funding. According to the Government, this provides for more active control against financial and economic crime and more efficient protection of the property interests of the public.

The new act also differs from the previous one in that it provides only for full property liability.

[10] 1996 BUDGET BILL PASSED ON FIRST READING

This is the first time for the past several years that budget is moved for discussions before the beginning of the new calendar year. If the budget is passed on second reading in January we will have the most important conditions for the implementation of the 1996 Government program, Zhan Videnov said as introducing the budget.

Many criticisms were levelled at the draft budget in the plenary chamber. "The 1996 budget bill is antisocial," UDF MP Filip Dimitrov said. The fact that next year social security will be provided not by employers but by employees is unprecedented," UDF Floor Leader Yordan Sokolov stated in connection with the projected introduction of an additional social security tax of two percent. MPs proposed increase of appropriations for health care, social security, education, culture, agriculture and subsidies for municipalities. There was a suggestion to utilize part of the cash privatization funds to this effect. It was stated during the parliamentary debates that the stipulated annual budget deficit of 12 percent is unrealistic.

MRF MP Gyulbie Osman said that there will be difficulties when implementing 1996 budget. According to her, it does not reckon with the 1995 financial results and will hardly give impetus to economic growth in the country. The too low inflation on the basis of which the budget bill has been projected was also a target of criticism. According to UDF Leader Ivan Kostov, next year inflation will exceed by far the 20 percent, set in the bill.

Krassimir Premyanov, Floor Leader of the Bulgarian Socialist Party (BSP) said that BSP MPs support the budget bill moved by the Cabinet. It will provide actual growth of economy, he stated. "The budget bill is probably imperfect but it is within the country's real potentials," Premyanov noted.

The MPs are to move amendments to the budget bill in three weeks' time, by the end of the Christmas recess. Already before the end of January the bill is expected to be introduced for second reading discussions in the plenary chamber.

[11] BUSINESS PRESS

Nestle wants to take over Prima Lacta, the powdered milk maker in Lovech, "Troud" reports. The Agriculture Ministry has not okayed the deal because Prima Lacta is the only company of its kind in the Balkans. In 1994 Nestle took over the Sofia-based chocolate factory Malchika for 2.1 million dollars along with its 4.2 million dollar debt and committed to invest 7 million dollars.

The Pernik coal mines are on the verge of bankruptcy, says "Troud", quoting Director General Aleksi Aleksiev. In 1996 the mines will get 235 million leva in subsidies instead of the required minimum of 500 million leva. The management demands that subsidies per tonne of coal be fixed according to a new method.

Yambol Bank posted losses of 800 million leva in 1994, it emerged at a general shareholders' meeting yesterday. Early in 1996 the bank's creditors will be approached about its debt according to a Government bank rehabilitation programme adopted on Monday. The central bank and the Bank Consolidation Company will act as mediators.

The press says end-year stock trading is sluggish. Three stock exchanges reported a corporate paper turnover of 79,000 leva yesterday. No transactions were made on Sofia Stock Exchange. Only Treasury bills traded on First Stock Exchange. Corporate paper worth 37,000 leva traded on Plovdiv Stock Exchange, the highest figure on Wednesday.

[12] BULGARIA-BELARUS

The broken bilateral ties in the military sphere should be restored and the agreement provides a good groundwork for it, Defence Minister Pavlov said after the signing of the document. He went on to say that Bulgaria is willing to develop military cooperation with Belarus with priority to be given to the military-technical and military-scientific fields, including barters.

Bulgaria is interested in Belarus' expertise in the establishment of a professional army, Pavlov said. Belarus has a 10,000-strong professional army and maintaining it is 30- 40% cheaper than maintaining the conscript units, the guests said during the talks with the Bulgarian Defence Minister.

The sides agreed in principle to cooperate in the military-technical sphere in 1993 in Sofia when the two countries' Heads of State Zhelyu Zhelev and Stanislav Shushkevich signed a bilateral friendship treaty. The agreement signed today also envisages cooperation in training of personnel, culture and information, among other things.

Interviewed by "Douma" in August, Sofia-based Belarussian Ambassador Alexander Gerasimenko outlined the export of Belarussian-made spare parts for Bulgaria's combat equipment and exchange of products of the two countries' military-industrial complexes as major opportunities for bilateral military cooperation. Bulgaria is particularly interested in the possibility to repair its Su aircraft at the works near Baranovich in Belarus as it does not have the necessary facilities, Daily News learned from well-informed sources.

"I fully agree with Mr Pavlov's presentation of the priorities of cooperation," Gen. Maltsev said. The Bulgarian proposals for training Belarussian cadets and auditors in Bulgarian military schools, which have good traditions, are, among other things, of economic advantage to Belarus, he also said. Belarus showed interest in Bulgaria's experience acquired as a result of participation in the Partnership for Peace (PFP) initiative ( for forging closer ties between NATO and its Eastern neighbours), the head of the Defence Ministry Press Office Capt. Tsvyatko Donchev said. Bulgaria joined the PFP in early 1994, a year before Belarus.

At the signing ceremony, the two ministers outlined many similar problems facing the Bulgarian and Belarussian armies. The talks were very open and friendly; Maltsev even shared his alarm with negative developments in the Belarussian army, and asked for cooperation, a Defence Ministry source present at the meeting told "Daily News".

Maltsev's schedule today includes meetings with President Zhelyu Zhelev, National Assembly Chairman Blagovest Sendov and Prime Minister Zhan Videnov.

[13] GDP EXPECTED AT ABOUT 2.5 PERCENT, STATISTICS SHOW

The projected consumer prices index for 1995 is 133.4, Karamfilov said. This means that inflation is expected at 33.4 percent or 3.5 times less as against 1994 inflation which reached 121.9 percent.

NSI expects project a positive trade balance for the current year. Production in the public and private sectors, including agriculture, will worth 1,300 million leva, the NSI President stated. This is about five percent more compared with 1994 production. The private sector accounts for approximately one third of the overall production and agriculture and almost 40 percent of industrial production growth.

In 1995 industrial production will amount to 760,000 million leva which is four to five percent more compared with last year, Zahari Karamfilov said. Half of the industrial enterprises are expected to report higher production as from 1994. According to projections of NSI experts, in 1995 goods sales on the home market will exceed 410,000 million leva or they will be three percent more as of the previous year. The relative share of the private sector in these sales is more than 75 percent.

Although more favourable macroeconomic indicators are expected in 1995 larger part of the enterprises' problems are still unsolved, Mr Karamfilov said. These problems include raw materials and their high prices, financial indebtedness and the unsteady economic environment in which some of the enterprises operate.

[14] NATIONAL RADIO DIRECTOR ON JOURNALISTS' DISMISSALS

Earlier this week seven radio journalists were dismissed. The seven are among the 50 journalists who on November 21 signed a protest declaration claiming that there was censorship at the radio. At a news conference immediately following the signing of this declaration the radio managers said no one of the protestors will be fired.

Yesterday journalists staged a protest rally in front of the national radio building in protest at the dismissals. The rally demanded the resignation of Vyacheslav Tounev. On Tuesday the opposition also insisted that Tounev resigned. Commenting on the rally, Tounev said that it confirmed his suspicions that the concern for freedom of speech is not the main concern of the rally organizers. In his view the participants in the rally levelled sharp and unjustified attacks not only against the radio, but also against Parliament and Government in violation of the Bulgarian Constitution. Vyacheslav Tounev said that he, himself, had decided to discharge the seven journalists and takes the whole responsibility for this.

Today the Union of Bulgarian Journalists circulated a declaration insisting on the immediate reinstatement of the dismissed journalists of the Horizont Programme. Today a copy of the declaration was handed to Vyacheslav Tounev. Even if the criticism levelled at the management is not well sustained it should not prompt dismissals, reads the declaration.

In a letter to Prime Minister Zhan Videnov, the Reporters sans Frontieres international organization voiced its concern over the dismissals of the seven radio journalists. The organization insists on the reinstatement of the discharged. The letter also urges for taking all necessary measures to lift the pressure which deprives journalists from the freedom to provide information, reads the letter.

[15] MASS PRIVATIZATION STARTS ON JANUARY 8

This week Parliament approved the mass privatization programme and the Privatization Funds Act. There is only one technicality to arrange: the gazetting of these instruments.

The information centre which will conduct the mass awareness campaign opens on December 28, Mitrev said. Campaign contracts will be made with the national media too.