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News from Bulgaria / 96-06-14Bulgarian Telegraph Agency Directory - Previous Article - Next ArticleFrom: Embassy of Bulgaria <bulgaria@access1.digex.net>EMBASSY OF BULGARIA - WASHINGTON D.C.BTA - BULGARIAN TELEGRAPH AGENCY14 June, 1996CONTENTS
[01] PRESIDENT ZHELEV RETURNS FROM TURKEYSofia, June 13 (BTA) - At the meetings I had with Turkish Prime Minister Messut Yilmaz and President Suleyman Demirel we established that we share very similar views on the promotion of bilateral relations, cooperation in the Balkans and integration with the European and Euro-Atlantic structures," President Zhelyu Zhelev said returning from Turkey where he took part in the HABITAT II U.N. cities conference.Mr Zhelev said that he had met Albanian President Sali Berisha who informed him about the elections in Albania and the problems "some people have been trying to create" about them. "I think the conference was a success, there were very interesting reports that stressed different aspects, depending on the progress each country has made in its development," President Zhelev said. [02] VIDENOV GOVERNMENT SURVIVES NO CONFIDENCE MOTIONSofia, June 13 (BTA) - In a secret ballot vote, Parliament defeated by an overwhelming majority an opposition motion of no confidence in Zhan Videnov's Democratic Left Government. Of a total of 235 MPs voting, 135 were against the no confidence motion, and 99 were in favour. Judging from the tally, at least several opposition MPs supported the Government (the Democratic Left holds 125 seats in the 240-place legislature).The no confidence motion was introduced last week by 75 MPs of the opposition Union of Democratic Forces (UDF), the Popular Union and the ethnic Turks' Movement for Rights and Freedoms (MRF) over "the failure of the Cabinet's economic policy." During the debate on the motion, the Democratic Left MPs said they would vote against and would support the Government and the structural reform it is carrying out. "I regard the rejection of the motion of no confidence in the Government by a comfortable majority as an expression of common sense, national responsibility and statesmanlike wisdom," Prime Minister Zhan Videnov told Parliament after the results of the vote were declared. In his view, "the fact that at least several opposition MPs voted against the motion is indicative - probably not as an expression of unqualified confidence in the Government and its composition but then an expression of support for the programme of structural reform, financial stabilization of the country now, which the Government has proposed, received international support for, and is already implementing." Mr Videnov admitted that the Democratic Left and its Government are to blame for not coming up earlier with a structural reform programme before Parliament and the public, but said this "can be corrected." "The Government received the strongest parliamentary support for its worst failure. This shows that the UDF is right to press for early general elections and a new Parliament because the incumbent one is totally irresponsible," UDF leader Ivan Kostov said in a declaration read before Parliament on behalf of the Union. "The majority entirely assumed the Government's responsibility for the crisis and for its imminent aggravation," Mr Kostov said. "For the opposition, the way out is to turn the presidential elections into a truly popular vote against the BSP. The UDF persists in its efforts to unite the opposition," the UDF leader declared. He attacked the Bulgarian Business Block (BBB) for saying one thing and voting otherwise. During the debate, BBB declared its support for the motion of no confidence and its intention to vote against the Government. The Co- chairman of the Popular Union Stefan Savov also accused BBB of voting in support of the Cabinet. BBB MPs rejected Mr Kostov's and Mr Savov's "insults." For his part, Democratic Left Floor Leader Krassimir Premyanov expressed the view that separate MPs of the UDF, the Popular Union and the MRF had voted in favour of the Government. On his way out of Parliament building, Prime Minister Videnov told reporters that after some time he may ask the National Assembly to vote on a motion of confidence in the Government because the policy it is implementing needs support. "The no-confidence motion which Parliament rejected by 135 votes today means that some people do not want the incumbent Government to go. It is to their interest to keep it in power because they are afraid to assume the responsibilities of the executive at this moment of hardships," President Zhelyu Zhelev told journalists atreturning from Turkey. [03] CABINET ADOPTS STRATEGY TO ATTRACT FOREIGN INVESTMENTSofia, June 13 (BTA) - The power industry, electronic and electrical engineering, machine building, the chemical and pharmaceutical industry, agriculture and tourism are the priority sectors for foreign investment under a government strategy designed to attract foreign investment until 1999. By end-July individual ministries are to submit implementing programmes to the Government.Joint ventures will get incentives and joint production can count on tax concessions, Deputy Prime Minister and Minister of Economic Development Roumen Gechev said after the Cabinet meeting. The document envisages setting up a foreign investment guaranty fund. It will be partly financed through grants-in-aid under the PHARE programme, Gechev said. The foreign investment attraction strategy envisages enacting laws on insurance, natural and ground resources. Emphasis is on foreign direct investment. Direct investment in Bulgaria totalled 59 million dollars in the first quarter of 1996 and was considerably larger than in the year-earlier period. [04] COUNCIL OF MINISTERS DECISIONSSofia, June 13 (BTA) - At a regular meeting today, the Government decided to open a new border checkpoint on the Bulgarian-Romanian border, in connection with the opening of a highway and ferry link between Toutrakan (Bulgaria) and Oltenica (Romania).Doctors' salaries double as of July 1, according to a new pay scheme for senior medical personnel. The managers of national hospitals will be getting over 32,000 leva monthly, and surgeons some 23,000 leva monthly. The monthly salary of senior medical staff in hospitals subordinate to the Ministries of Health and Transport will average 19,000 leva, and of doctors at municipal hospitals 16,500 leva. The Cabinet doubled Interior Ministry vehicle registration fees. It introduced charges for services provided by the Energy Efficiency Centre set up under an agreement between the Governments of Bulgaria and Japan in August 1995. The step is justified by the fact energy consumption is measured with expensive Japanese equipment. The Council of Ministers gave agreed for holding a multinational ground forces exercise "Cooperative Determination'96" on Bulgarian territory. The Government urged Parliament to okay the participation of military officers from six countries, as well as their transportation here on military transport aircraft. The exercise is part of the Partnership for Peace programme for fostering cooperation between NATO and former Eastern bloc nations. It will take place from June 4 through 12 in the area of Belene on the Danube. The Government asked the National Assembly to okay the participation of Bulgarian military in the air force exercise Cooperative Change'96. The exercise is part of an individual plan for cooperation between Bulgaria and NATO, in the framework of the Partnership for Peace programme, and will be held in Hungary. Prime Minister Zhan Videnov will head the Bulgarian governmental delegation for the summit of the European Union member countries and EU associate members from Central and Eastern Europe in Florence on June 21 and 22. The Cabinet approved the idea for Bulgaria's accession to the European Convention on Spectator Violence and Misbehaviour at Sports Events and in Particular at Football Matches. The Convention entered into force on November 1985 and is open to accession by all members of the Council of Europe and the European Cultural Convention. The Government approved the text of the Charter of the Regional Environmental Centre for Central and Eastern Europe seated in Sent Endre, Hungary. Deputy Environment Minister Yordan Ouzounov was authorized to sign the Charter on behalf of the Bulgarian Government. Bulgaria was among the founders of the Centre in 1990. At a closed sitting the Council of Ministers approved a letter proposing to the World Bank a draft agreement on a Finance and Enterprise Structural Adjustment Loan. The agreement was approved in principle last week. The Government undertakes to denationalize 19.6% of the enterprises by mass privatization and 22.4% by a combination of mass and cash privatization, Government spokesman Nikola Baltov said. [05] BNB GOVERNOR SAYS BNB NOT RESPONSIBLE FOR COMMERCIAL BANK LIABILITIESSofia, June 13 (Alexander Kirov of BTA) - The liabilities of Mineralbank Inc are not for the Bulgarian National Bank (BNB, the central bank) to cover, BNB Governor Lyubomir Filipov told journalists today. The bank supervision body of any state cannot be held responsible for the liabilities of illiquid banks, Filipov claims. The problem is within the competence of the Government and the central bank may render assistance only as a consultant, Filipov said.Today's press published reports that Western financial circles are threatening Bulgaria with isolation because of the liabilities of the state-owned Mineralbank Inc for which the BNB opened insolvency proceedings last month. Mineralbank Inc owes the Japanese Industrial Bank USD 50 million at an annual interest rate of 5.8%. The bonded loan was issued in 1989 by the bank. The claims of the Japanese Industrial Bank that Mineralbank Inc liabilities be paid by the Government are unjustified, Finance Minister Dimiter Kostov told journalists today. The fact that the state owns the Mineralbank commercial partnership does not mean that it should undertake additional liabilities, Kostov said. It is ridiculous to claim that the West would turn its back to Bulgaria because of Mineralbank Inc, this is impossible, the BNB Governor said. Exceptions should not be used for making generalizations, Filipov said. This week saw an increase in bank foreign exchange deposits which is the first sign of restoration of confidence in the banking system, Filipov said. We expect this tendency to continue, he added. At its session today the BNB Board of Governors decided to hike the interest rate on commercial banks current accounts at the BNB from 20 to 36%. This is aimed at boosting the efficiency of commercial bank transactions, Filipov said. The BNB Board of Governors gave additional powers to the Monetary Policy Implementation Committee in view of improving payments on public deposits, BNB Governor Lyubomir Filipov said. [06] BULGARIA-MACEDONIA: MEDIA EXCHANGESofia, June 13 (BTA) - There are no political obstacles to broadcasting, to the circulation of printed media and to the exchange of information between Bulgaria and Macedonia, Ms Ana Panovska, Secretary of the Information Secretariat with the Government of the Republic of Macedonia said at a news conference today. Only the Sofia "Continent" daily is circulated in Macedonia because the importers are interested in it, Ms Panovska added. Ms Panovska is paying a several- day visit here.Today Ms Panovska met the management of BTA and Sofia Press and Deputy Foreign Minister Ivan Hristov to discuss media exchange between the two countries. Tomorrow she will confer with National Assembly Chairman Blagovest Sendov, with the chair of the parliamentary Foreign Policy and European Integration Committee, Nikolai Kamov, with Union of Democratic Forces leader Ivan Kostov and the management of the Bulgarian National Radio and Bulgarian National Television. [07] ENERGY MINISTER SEES NO DANGER FOR ELECTRICITY RATIONINGSofia, June 13 (BTA) - Energy Minister Roumen Ovcharov is almost sure there will be no electricity rationing in Bulgaria. Interviewed by the "Douma" daily today, the newly appointed Minister of Energy and Energy Resources says he sees no economic or technical reasons for power rationing. "But neither is there a 100% guarantee for this," said he.Commenting on the upcoming hike of electricity prices, the former chief of the Energy Committee said the price is not a magic key in itself to solve all problems in the energy industry. "It is a prerequisite but not the only one," Ovcharov said adding that structural adjustment of the sector and introduction of market principles are just as important. Ovcharov said a permanent task is providing financing for the overhaul of facilities and energy resources for the autumn and winter. "And, of course, financial stabilization as much as it is possible," he adds. Asked whether he is a supporter or opponent of nuclear power production as opposed to local coalmining, Ovcharov says it is no either-or choice. "We will develop both nuclear power production and local energy resources. I think this opposition is irrelevant. For me this problem does no exist," says he. [08] PARLIAMENT OKAYS GOVERNMENT CONTRACT WITH SIEMENSSofia, June 13 (BTA) - Following arguments, Parliament gave the go-ahead to the Government to sign a tied-credit agreement with Germany's Siemens. The DM 100 million loan will be repayable over 10 years with a two-year grace period at 6 per cent interest. Part of it can be repaid through barter. Bulgaria will buy badly needed X-ray and radiological diagnostic and therapeutic equipment. Hospitals have only outdated equipment which in some cases is a health hazard to patients. Siemens has offered to sign a framework agreement and contracts for joint production of roentgenoscopes and a tied credit for the purchase of Siemens medical equipment. Opposition MPs said they would vote to approve the credit but raised the issue of Bulgaria's guarantees that it will be repaid. They asked how its repayment would fit in the country's general payments scheme.[09] "FRANCE ENTERPRISES'96" EXHIBITION TO OPEN IN SOFIASofia, June 13 (Vanya Ivanova of BTA) - The third exhibition of French companies "France enterprises'96" will be opened on June 17 in Sofia. The Club affaires France-Bulgarie and the trade section of the French Embassy in Sofia are the initiators of this exhibition. Thirty-two French companies in the food processing, automobile, cosmetics, engineering, advertising, electronics, informatics industries and information and banking services will display their goods and services at the third edition of "France enterprises'96"."The fact that this year the participants are two more than last year indicates the growing interest shown by French business circles in Bulgaria, the commercial attache in the French Embassy, Ms Elizabeth Puissant, told a news conference today. Ms Puissant cited a number of figures in support of this statement. Last year commercial exchange between Bulgaria and France totalled 2,000 million French francs which was 10% up from 1994. France has a deficit of 45 million French francs in its trade with Bulgaria. Textiles, goose liver, wine, fruit, vegetables, fertilizers, metallurgical products, ceramic tiles and tobacco dominated French imports from Bulgaria. Last year French exports of machines and appliances to Bulgaria soared 60% from 1994. In 1995 Bulgaria imported from France cosmetics and pharmaceutical products, equipment, electronics, cars and spares for them and dairy products. "Representatives of some 30 French companies have visited Bulgaria since the beginning of this year which is indicative of their wish to activate trade contacts with Bulgaria in seeking investment opportunities here," Ms Puissant said. The French Cultural Institute in Bulgaria will publish a French language reference book of Bulgarian commercial laws which would facilitate French businessmen in their contacts with Bulgarian partners. Ms Puissant also said that work is underway on two joint ventures in vinegrowing and wine making and in cattle breeding. The Club affaires France-Bulgarie is also working for activating French-Bulgarian commercial contacts. It was set up in 1994 and now comprises over 50 representatives of French firms in this country and French-Bulgarian joint ventures. [10] BUSINESS PRESSSofia, June 13 (BTA) - The monthly inflation in June and July is expected to be high and the base interest rate should remain at its current level, "Pari" writes citing Lyubomir Filipov, Governor of the National Bank of Bulgaria (BNB). At the moment the amount of refunding floated commercial banks does not stand in the way of BNB's restrictive policy, according to Mr Filipov.Yesterday some banks blocked for several hours the foreign exchange market because they were out of cash, "Standart News" writes citing dealers. A little before noon the dollar trade stopped and was not resumed until the end of the day. The forex market will be blocked if BNB does not resume refunding of banks and does not reduce drastically the base interest rate, the leaders of the Association of Commercial Banks warned late last week. The paper quotes dealers as saying that in a couple of days the US dollar may strengthen further against the lev. The Bulgarian-Romanian negotiations on the establishment of a free trade area will probably be held in Bucharest on July 2-4, 1996, "Continent" says referring to Minko Gerdjikov, Head of Southeastern Europe Department with the Ministry of Trade. "The talks on customs preferences will be difficult because the two countries have similar productions, Mr Gerdjikov said. Negotiations on a free trade area with Slovenia will also be opened. The parliamentary Budgetary and Finance Committee decided to fix a minimum capital of 200 million leva for life insurers, 300 million leva for general insurers and 400 million leva for reinsurers. Few companies will be able to meet these requirements, "Standart News" notes. [11] PATRIARCH OF SERBIA ARRIVES IN BULGARIA TOMORROWSofia, June 13 (BTA) - A delegation of the Serbian Orthodox Church headed by Patriarch Pavle arrives on a five-day official visit to Bulgaria tomorrow. The Patriarch of Serbia returns the visit Patriarch Maksim of Bulgaria paid last year. Patriarch Maksim will meet Patriarch Pavle in Sofia by noon tomorrow. The two church dignitaries will hold a prayer service at Sveta Nedelya's Cathedral. Patriarch Pavle will visit the grave of St Sava, the patron saint of the Serbian people, in the yard of the 40 Holy Martyrs Church in Veliko Turnovo.The patriarchs will hold a solemn lithurgy at St Alexander Nevsky's Cathedral in Sofia. "It is still unclear who of Bulgaria's top statesmen the President, the Chairman of the National Assembly and the Prime Minister, will receive the Serbian guest," Metropolitan Gelassii, Secretary of the Holy Synod of the Bulgarian Orthodox Church, said yesterday. "We contacted the protocol departments of the three institutions but no arrangements have been made yet," he said. On June 19 Patriarch Maksim and Patriarch Pavle will visit the Bulgarians in Tsaribrod (Dimitrovgrad) in the Western Outlands (a territory in Southeastern Serbia, which Bulgaria, defeated in World War I, lost to Serbia under the 1919 Treaty of Neuilly). [12] BULGARIA SWEPT BY EUPHORIA AFTER VICTORY IN EURO 96Sofia, June 14 (BTA) - Thousands of enthusiastic fans came out into the streets last night to celebrate the victory of the Bulgarian team over Romania. The atmosphere was reminiscent of the enthusiasm two years ago when the Bulgarians came fourth at the World Championship in the US. The heavy rain immediately after the end of the live broadcast of the match did not cool the enthusiasm of the fans. They were most noisy and exalted in Sofia. Waving the national flag and wearing T-shirts with the Bulgarian tricolour, footballs fans stormed the streets of the Bulgarian capital until late into the night. They expressed their joy by blowing the horns of their cars and chanting "Bulgarian Heroes!", "Bulgaria - Champion!" and "We'll Beat the French!"President Zhelyu Zhelev cabled his congratulations to the Bulgarian national team. Bulgaria's 1:0 victory over Romania yesterday was its first victory in a European championship. "We won the Balkan 'war'" "Demokratsiya" writes today. Many dailies lead on the victory which seemingly overshadowed even news of the survival of a no-confidence vote by the Cabinet yesterday. Bulgarian Telegraph Agency Directory - Previous Article - Next Article |
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