News from Bulgaria / Jan. 5, 1996

From: [email protected] (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

CONTENTS

EMBASSY OF BULGARIA WASHINGTON D.C.

BTA-BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

[01] BUSINESS PRESS

The National Bank of Bulgaria (BNB, the central bank) did not intervene on the market. In November alone, its foreign currency reserves decreased by US$ 100 million which were sold on the market; the US currency sold by BNB in December amounted to US$ 60 million. "Troud" quotes brokers as saying that since payments on this country's foreign debt are to be made soon, BNB is keeping its money.

*** The press quotes BNB Governor Professor Vulchev as saying yesterday that the central bank will strengthen the financial discipline in the State Savings Bank (SSB) if the institution continues to pour money into the commercial banks. "BNB cannot introduce tighter restrictions on the commercial banks when for a month alone SSB poured more than 4,000 million leva in them," Vulchev says. In his view, the money flow on the market can badly destabilize the lev/dollar exchange rate.

*** Bulgarian owners of mobile phones will be able to use them in Romania as well, the press says, citing information of the Mobikom company. Mobikom - the first operator of mobile phones in this country, signed a roaming agreement with Telefonica Romania.

*** The BORIKA Ltd. - the banking system for card settlements, will be transformed into a joint-stock company, "Pari" says. The BNB-owned institution will increase its capital, which currently amounts to 145 million leva, through the shareholding commercial banks' making contributions by means of payment in kind.

*** The press reports about major thefts form SSB. A fraud succeeded in drawing some 13 million leva (nearly US$ 200,000, according to the current official rate), possibly with false money orders. A pretty blond woman is wanted by the police.

[02] BULGARIAN-RUSSIAN TALKS IN METALLURGY

The Kremikovtsi visit is Avdeev's first visit this year, which is a sign of expanding bilateral cooperation in metallurgy, according to the radio.

Avdeev reaffirmed Russia will repay $52 million of its $100 million debt to Bulgaria in equipment and spares for Bulgarian ferrous metallurgy. With the two economies struggling, the dialogue which began in the first months of 1996, will continue at other industrial companies and help make progress together, said Bulgarian Deputy Industry Minister Plamen Dimitrov.

[03] BULGARIA TO BUILD SHIPS FOR ITS NAVY

Dating from 1991, the corvette project was approved by a military scientific and technical commission only now. This is the first project answering the purpose to protect Bulgaria's borders.

The ambitious plan involves the Navy, the shipyards in Varna, Bourgas and Rousse, manufacturers of optical electronic products and research institutes of the Defence Ministry and the Bulgarian Academy of Sciences. The Varna shipyard is to build the first corvette within three years.

The Bulgarian navy now operates the flagship Smeli, six corvettes, eight minesweepers, twelve minelayers, six guided missile boats, the guided missile corvette Mulniya, two subs and two tankers, based in Varna and Atiya. "There is a shortage of spare parts, and 80% of the boats have been used for 25 years, with the normal life of a boat being 10 years," navy commander Vice Admiral Hristo Kontrov said a year ago. Of four submarines operated until 1988, two have been decommissioned and sold as scrap. Two frigates, four torpedo boats and two minesweepers have also been decommissioned.

According to the programme, navy vessels will be almost fully replaced by the year 2015. Bulgarian shipyards will be building corvettes, guided missile corvettes, minehunters, minelayers, tugboats and tankers. These will be multipurpose 800 to 1,000- tonne vessels. "Bulgarian ships will be 25 to 40% cheaper than counterparts on the international market," Defence Minister Dimiter Pavlov says. A guided missile boat now runs at $80 million, and a state-of-the-art frigate costs $250 million to $300 million.

Regardless of its old fleet, the Bulgarian navy joined exercises under the Partnership for Peace programme for fostering close links between NATO and former Eastern Bloc countries, in the Black Sea and the Mediterranean.

[04] COUNCIL OF MINISTERS' DECISIONS

The health agreement was drafted by the Bulgarian Ministry of Health as agreed with the Romanian medical department. It provides for the exchange of information and experience between experts in the organization and management of the health care system, implementation of joint medical programmes and projects, scientific forums, etc. Bulgaria and Romania will provide free medical care to citizens of the two countries for the duration of their stay on a reciprocal basis. Some categories of public servants will also receive free medical care during their stay in the respective country.

The draft programme for cooperation in science, education and culture will serve as a basis for negotiations because of the expiry of the 1993-1995 programme. The draft lists traditional and new forms and initiatives that will stimulate bilateral contacts.

*** The Cabinet approved a draft programme for cooperation in culture, science and education between the governments of Bulgaria and Sweden in 1996-1998. The previous one was operative until the end of 1995. It provides for the granting of scholarships on reciprocal basis and specialization in the Swedish language. Artistic events will be arranged through the agency of impresarios.

*** The Cabinet allocated 292 hectares to the Elatsite-Med state copper enterprise in the village of Mirkovo (Sofia Region) to extend its tailings pond. By 1999 the capacity of the existing one (160 million tonnes) will be fully used; the extension will meet the enterprise's needs until the year 2020. The local copper ore reserves guarantee the operation of the plant for another 40 years, the Government Press Office said. The extension project will cost 1,400 million leva (the central exchange rate of the US dollar is 71.129 leva at the moment).

*** The Government allowed the Varna-based Black Sea Shipping Co. to charter ships sailing under Maltese flags for the transportation of passengers along the Bulgarian Black Sea coast until 1998. The company's previous permit expired at the end of 1995.

*** Amending its decision of 1992, the Council of Ministers allocated new premises to the Bulgarian-Danish College of Trade, Export and Marketing set up at that time. Operating in a village near Sofia so far, the College will move to the House of Technology in Botevgrad (Northern Bulgaria). The conditions there are much better, experts of the Ministry of Education, Science and Technology said.

*** The Cabinet decided to allocate new premises to the National Pricing Commission and the Ministry of Justice free of charge. The building has been held by foundations, public organizations and structures of the Bulgarian Agrarian National Union so far. The Ministry of Justice will house its foundation Bulgarian French Legal House at it. The House will provide consultations for the Bulgarian lawmakers and will draft statutory acts harmonized with the European legislation, the Government Press Office told BTA.

[05] PRESIDENT ZHELEV TO SEEK CONSTITUTIONAL COURT

For more than three hours writers and journalists discussed the situation in the Bulgarian media at a round-table organized by the "Literaturen Forum" newspaper. They converged on the view that censorship and political control of information has been practised in Bulgaria over the last few years. One example of censorship has been the firing of seven journalists from Bulgarian National Radio last month.

Addressing the meeting, President Zhelev expressed solidarity with the dismissed journalists. He said that probably on Monday he will approach the Constitutional Court for an interpretative ruling on how free speech is defined, what constitutes censorship, and whether the Constitution applies directly in the absence of a media law. He invoked Article 40 of the Constitution, according to which "the press and the other mass communication media shall be free and shall not be subject to censorship."

"In Bulgaria there are no rules of the game, and the mass media play into the hands of political forces and journalists fall victim to this play," Dr Zhelev said. He unveiled his intention to share in the establishment of a Free Speech Foundation because, as he put it, "solidarity is a very important thing but people who may find themselves on the receiving end of a crackdown need financial backing."

According to Dr Zhelev, the future media law must guarantee limited terms of office and irremovability of the national media chiefs so that they would not be dependent on political forces. The public board, which will supervise and control the national media, should also be subject to limited terms of office and its members should be elected within definite quotas by all institutions and not just by Parliament, the President argues. In his view the national media should be largely financed out of the public purse.