Bulgarian Telegraph Agency (BTA), 96-11-11

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

11 November, 1996

CONTENTS

[01] CONGRATULATIONS TO PRESIDENT ELECT STOYANOV

[02] PM VIDENOV PLEASED WITH RESULTS OF GRAZ MINISTERIAL

[03] BULGARIAN PM VIDENOV HOLDS MEETINGS IN GRAZ

[04] SOFIA TO HOST ATLANTIC TREATY ASSOCIATION FORUM

[05] AMERICAN UNIVERSITY IN BLAGOEVGRAD MARKS 5TH ANNIVERSARY

[06] P.M. VIDENOV ASKS SOCIALIST M.P.S TO CONFIRM CONFIDENCE IN GOVERNMENT

[07] ENERGY MINISTER OVCHAROV: STUDIES FOR NUCLEAR WASTE STORAGE NOT YET COMPLETED

[08] OCTOBER INFLATION IS 16.7 PER CENT

[09] DEADLINE FOR 1997 NATIONAL BUDGET EXTENDED

[10] BULGARIAN WINES WIN PRESTIGIOUS AWARD

[11] CURRENCY BOARD CONTROVERSY

[12] VIDENOV: NO DECISION YET ON CURRENCY BOARD INTRODUCTION

[01] CONGRATULATIONS TO PRESIDENT ELECT STOYANOV

Yugoslav President Zoran Lilic congratulated Stoyanov on his election, wishing him success in his responsible position on behalf of the peoples of the Federal Republic of Yugoslavia. Lilic said he was convinced the two neighbour countries would continue to cooperate in the interests of their peoples, as well as of peace, stability and good neighbourly relations in the region, says a message from the Yugoslav Embassy.

European Commission President Jacques Santer expressed in a letter the EU's readiness to support democratic reform in Bulgaria, as well as its efforts to become a EU member. Santer expressed a hope that a meeting with the President elect in the near future would further these processes, Stoyanov's press office said.

In his congratulatory message British Prime Minister John Major expressed his conviction that Stoyanov would continue building a modern democratic Bulgaria, for which he would have Britain's full support.

[02] PM VIDENOV PLEASED WITH RESULTS OF GRAZ MINISTERIAL

On Saturday morning Videnov met with his Italian counterpart Romano Prodi. They discussed possible ways to renew contacts within the intergovernmental joint committee and develop bilateral relations, BTA's special correspondent reported from Graz.

On Friday Videnov met in succession with the host of the forum, Austrian Chancellor Franz Vranitzky, and Hungarian Prime Minister Gyula Horn. At his meeting with the Austrian Chancellor Videnov outlined the political and economic situation in Bulgaria after the presidential elections and invited him to Sofia. They discussed matters relating to the CEI and Yugoslavia's desire to join it.

Videnov and Hungary’s Gyula Horn discussed their countries' difficulties along the path of reform. They agreed that there is no alternative to reform and the countries must stick to it despite the difficulties.

[03] BULGARIAN PM VIDENOV HOLDS MEETINGS IN GRAZ

After the meeting PM Videnov told reporters that he and his Macedonian counterpart discussed the development of the bilateral relations, the drafting of the declaration on the principles of good- neighbourliness, the launched negotiations for trade liberalization and the expected meeting of the transport ministers of the region in Sofia due at the end of this month. According to Mr Videnov the meeting will boost cooperation in transport along the East-West corridor, the development of trade and in general and the bilateral relations with Macedonia, which Bulgaria prioritizes as they concern a friendly and neighbouring country.

Branko Crvenkovski voiced satisfaction with this first meeting between the two prime ministers. The Macedonian PM said that in the bilateral relations Macedonia prioritizes cooperation in the economic field. He also said that he and his Bulgarian counterpart had expressed willingness for another meeting at the level of prime ministers.

PM Videnov also met with Belarus PM Michail Chigir and Foreign Minister Vladimir Senko. Bilateral relations and the prospects for import of farm equipment from Belarus were on the agenda of their talks. Belarus showed interest in purchasing farm produce, particularly tobacco and canned products. Later in the day the Bulgarian Prime Minister is scheduled to meet with his Hungarian counterpart Gyula Horn.

[04] SOFIA TO HOST ATLANTIC TREATY ASSOCIATION FORUM

Bulgaria will be the first NATO nonmember to host this ATA forum. The invitation was extended by Sofia Mayor Stefan Sofiyanski. The other candidate was Oslo.

NATO Secretary General Javier Solana and another 500 high- ranking politicians are expected in Bulgaria in September or October 1997 for the ATA forum, Sofiyanski said today. He believes Sofia's invitation was accepted for three reasons: the new political situation in Bulgaria after the presidential elections, the busy work of the Bulgarian Atlantic Club and the personal invitation of the Sofia Mayor.

During his Rome visit Sofiyanski met Rome Mayor Francesco Rutelli. The Sofia Mayor also said on November 21-24 he will visit Moscow together with a 10-member delegation of municipal officials on the invitation of his Moscow counterpart Yury Luzhkov.

[05] AMERICAN UNIVERSITY IN BLAGOEVGRAD MARKS 5TH ANNIVERSARY

At present 500 Bulgarian and more than 150 foreign students from 14 states, mainly East European, are enrolled in the University. The courses of study include applied economics, business administration, computer sciences, English language and literature, history, journalism and mass communications, political sciences, international relations and Balkan studies. Two classes of 150 people have graduated from the University. Many of them work for international companies operating in Bulgaria, others continue their education in US and European universities.

The US Government has given 15 million US dollars to the American University in Blagoevgrad through the US Agency for International Development, Mrs Bohlen said. The Government is going to provide other 15 million dollars for the future of the university, she added. Owing to the US Agency for International Development and the Open Society Foundation the University's financial stability has been provided in the long term, Dr Julia Watkins, President of the University, said.

[06] P.M. VIDENOV ASKS SOCIALIST M.P.S TO CONFIRM CONFIDENCE IN GOVERNMENT

"My colleagues in the government have given me the freedom to act on their behalf and on Monday I will test the confidence of the Democratic Left parliamentary group," Videnov said answering the question whether he is planning to dismiss some government ministers or is considering an en bloc resignation of the government. In the meantime, MPs of the Bulgarian Business Bloc-turn-independents said next week they will move a vote of no confidence in the government.

The BSP Supreme Council, which is the top political leadership of the party, has scheduled a sitting for Monday to analyze the results of the recent presidential elections. The Democratic Left's Ivan Marazov and his running mate Irina Bokova lost the presidential runoffs last Sunday to the opposition's contenders with a margin of about 20 percentage points. It is the first loss of the Left after its landslide victory in the 1994 general elections. Earlier this week, 19 Socialists including former party leader Alexander Lilov, deputy leader Yanaki Stoilov, other members of the BSP leadership and MPs sent an open letter declaring themselves in favour of a new government of the Left with a new policy. They said a new government of the Left will help Parliament serve its full term expiring in late 1998. Yesterday the opposition announced it starts preparing for early general elections.

[07] ENERGY MINISTER OVCHAROV: STUDIES FOR NUCLEAR WASTE STORAGE NOT YET COMPLETED

[08] OCTOBER INFLATION IS 16.7 PER CENT

[09] DEADLINE FOR 1997 NATIONAL BUDGET EXTENDED

[10] BULGARIAN WINES WIN PRESTIGIOUS AWARD

Even though the company was re-established under its present name only two years ago, it has more than 60 years of history. The first wine cellar was set up in Oryahovitsa in 1932 on a French model, and the Menada-Vinprom state-owned company was founded on its basis in 1947. The company was privatized in 1994. The new owners, the Syarov brothers, have a family background of wine-making and trading dating back to the start of this century. Menada Syarov Bros. 1901 became Bulgaria's first private wine-maker. Four workshops located in four different population centres in that part of the country produce some five to six million bottles annually. All output consists of seasoned and young wines of controlled appellation of origin, mainly Cabernet, Cabernet Sauvignon and Merlot. The most popular brand is Cabernet Sauvignon Special Reserve from Oryahovitsa's oldest wine cellar. It matures in 225 l Californian oak casks and is seasoned for one more year in bottles. "We only make well balanced, harmonious wines," company owner Georgi Syarov asserts. "A pretty girl makes a pretty bride, and fine grapes make fine wines," he explains.

The Oryahovitsa area has been famed for wine-making ever since Thracian times. Even though all London supermarkets stock Menada Syarov Bros. wines, they are less well known in Bulgaria as 90 per cent of the output is exported. Most, 3 million bottles, go to Britain, and some 1 million are shipped to Benelux, Denmark, Norway and Finland. Small quantities are supplied to the US and Canada. Apart from the excellent quality, which puts them on par with the wines of France, Menada owes its market breakthrough to the relatively lower prices, the company believes. The Paris prize is not the first one on the company's record. At a blind tasting in London in 1985, the Menada wines were awarded a gold medal, which was followed by a gold and a silver medal in Brussels in 1991 and 1993, respectively, and by a Gold Star in Spain in 1995, plus several gold medals from the annual international fair in Plovdiv (South Central Bulgaria).

[11] CURRENCY BOARD CONTROVERSY

Videnov said he personally was not yet sure about the currency board and added that before taking a final decision on the matter the government must once again weigh carefully the pros and cons. He is certain, though, that the currency board should be managed by Bulgarians. Zhan Videnov reportedly asked Finance Minister Dimiter Kostov to calculate the social price of the currency board, though convinced that it "will not hit the real incomes of the population".

Following a meeting with MPs of the parliamentary Foreign Policy Committee, Michael Deppler, Deputy Director of IMF European I Department, said the social price of the introduction of a currency board has already been paid by Bulgarians over the past seven wasted years.

The matter was also discussed yesterday at Mr Deppler's meetings with the leaders of the Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Podkrepa Labour Confederation, this country's two most influential trade unions. After meeting the Podkrepa leadership, Mr Deppler said now he is even more certain of the need for having a currency board than when he arrived in Bulgaria. Podkrepa leader Konstantin Trenchev said that the IMF official wants trade unions to explain to people that the currency board is unavoidable and a matter of confidence in the IMF.

Yesterday Mr Deppler also met CITUB leader Konstantin Trenchev. "The meeting started and ended with the currency board and was held in an ultimatum-like tone," Petkov commented after the meeting. The trade union leader proposed a rescheduling of Bulgaria's burdensome external debt payments for after the year 2000. Michael Deppler, however, believes that while not impossible, a debt rescheduling is most risky.

Finance Minister Dimiter Kostov, too, dwelled on the currency board yesterday, saying that compared to the monetary and budget restrictions and the high interest rates, it is less risky and offers more guarantees for a quick macroeconomic stabilization. "If the country agrees to have a currency board, it can rely on a serious support from the IMF," he said yesterday.

The view that the high interest rate as a measure aimed at keeping up the national currency, is more burdensome than the budget, the banking and enterprise sectors can take, was fully shared by Michael Deppler and Deputy Prime Minister and Minister of Economic Development Roumen Gechev who met today. Gechev told Deppler that the currency board makes a sense only if the IMF undertakes clearly to provide sufficient support for the foreign exchange reserves of the country and financial resources exceeding the external debt payments the country is due to make. The sides agreed that Bulgaria will get IMF assistance before the end of January 1997 when sizable foreign debt payments are due, the Ministry of Economic development said in a press release.

The Association of Commercial Banks discussed today the possible introduction of a currency board in the country, the Bulgarian National Television said in its main news cast today. "I believe this measure will not have a positive effect on the Bulgarian banking system and on the Bulgarian private banks in particular," Director of Credit Bank Evgeni Goranov told the Bulgarian Television.

Yesterday Michael Deppler also met the leaders of the opposition Popular Union. It emerged that the Popular Union supports in principle the idea for having a currency board and believes it should be introduced only after a broad public and political discussion.

Michael Deppler and IMF Mission Leader for Bulgaria Anne McGuirk arrived in Bulgaria late last week. The IMF recommendation for having a currency board as a measure aimed at macroeconomic stabilization transpired after a meeting between Michael Deppler and Bulgarian President Zhelyu Zhelev.

[12] VIDENOV: NO DECISION YET ON CURRENCY BOARD INTRODUCTION

"The only thing we have so far is the IMF initiative and the central bank's refusal to deal with the issue. The Cabinet has not formulated, expressed or implemented a position, and things can be discussed only in the most general terms," Videnov said.

"This would be a very important decision about a somewhat risky step for which responsibility must be taken or not taken after a very thorough discussion. This time has not come yet," Videnov said, asked about the currency board.

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