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News from Bulgaria / Jan. 12, 1996From: [email protected] (Embassy of Bulgaria)Bulgarian Telegraph Agency DirectoryCONTENTS[01] PRESIDENT ZHELEV PETITIONS CONSTITUTIONAL COURT[02] CABINET SURVIVES NO CONFIDENCE VOTE[03] IFOR SEEKS FOOD, MATERIEL SUPPLIES FROM BULGARIA[04] BULGARIA EXPECTS TO BE INVITED TO BRUSSELS CONFERENCE[05] "INDUSTRIAL RECOVERY IS A FACT," SAYS INDUSTRY MINISTER[06] PRESS REVIEW NO CONFIDENCE VOTE[07] 5 Mln LEVA MISSING FROM BANK SAFE[08] 32.89% INFLATION IN 1995EMBASSY OF BULGARIAWASHINGTON D.C.BTA-BULGARIAN TELEGRAPH AGENCYBULLETIN OF NEWS FROM BULGARIA[01] PRESIDENT ZHELEV PETITIONS CONSTITUTIONAL COURTSofia, January 10 (BTA) - President Zhelyu Zhelev petitioned today the Constitutional Court, asking it to interpret three articles in the Constitution, connected with freedom of speech and censorship. Already at the end of last week at a discussion with writers and journalists President Zhelev voiced his intention to petition the Constitutional Court for interpretation of these texts in the Constitution. At the end of last year more than 50 journalists of the National Radio signed a protest declaration against censorship in the radio. Seven of the protestors were later discharged.According to one of the articles in the Constitution, which the President asked to be interpreted, "Everyone shall be entitled to express an opinion or to publicize it through words, written or oral.." ; "this right shall not be used to the detriment of the rights and reputation of others, or for the incitement of a forcible change of the constitutionally established order, the perpetration of crime, or the incitement of enmity or violence against anyone." According to the other two articles, "The press and the other mass information media shall be free and shall not be subjected to censorship," and "everyone shall be entitled to seek, obtain and disseminate information." According to the Bulgarian President, it was particularly important to clearly and precisely define the constitutional grounds for restriction of these rights by the state and its officials, says a news release of the President's press office. The news release also says that the President considers it of equal importance that the state fulfils its obligation and establishes clear rules to be applied on an equal basis to all state-owned and private media in their opening and functioning. [02] CABINET SURVIVES NO CONFIDENCE VOTESofia, January 10 (Evgenia Droumeva of BTA) - The parliamentary majority today supported the Zhan Videnov Government. MPs voted by secret ballot on a motion of no confidence in the Democratic Left Cabinet, introduced by the opposition over the administration's failure to ban grain export even though this would result in a critical shortage of bread. The motion was defeated, 130-105. The Cabinet survived the previous no-confidence vote, introduced on another occasion last September, by the same margin. The government majority holds 125 seats in the 240-seat legislature. Taking the floor after the results of the vote were declared, Prime Minister Videnov expressed his satisfaction, noting that "the majority of MPs took a nationally responsible stand." The head of government noted that yesterday's debate showed that the opposition will focus on the deterioration rather than a solution of the grain problem. "Even in this difficult political situation, the Government will do everything possible and necessary for the fastest solution to the grain problem," the Prime Minister said. Basically, the Cabinet will offer farmers incentives to produce grain and sell it on the domestic market, make efforts to maximize and use more resolutely the contingency reserve to regulate the market, and leave no statutory opportunity unseized for state regulation in pricing so as to prevent an uncontrolled rise of bread prices. The PM also said that "seeking a consensus on this problem is a must - for the incumbents and for the opposition alike." Asked by BTA later on whether he is planning a government shake-up, as mentioned yesterday by MPs of the ruling party, Mr Videnov said that personnel changes require more serious grounds. "Bulgaria is long past the time when changes were made for their own sake or ptomoted somebody's self-seeking interests," the Prime Minister added. Addressing the chamber after the vote, leaders of the opposition Union of Democratic Forces (UDF), the Popular Union and the Movement for Rights and Freedoms (MRF) observed that the opposition has not expected a result other than support for the Government. "Still, it is now clear to everybody that there is a grain problem and, what is worse, there is a grain scam," said Mr Stefan Savov MP, Co-Chairman of the Popular Union. He also sees the grain problem as an indication that there is corruption which got out of the Government's control. UDF leader Ivan Kostov lashed out against the Government, calling it "inept," "incompetent" and "good for nothing" and claiming that it cannot handle the state machine. Mr Kostov, as well as Mr Gyuner Tahir MP, an MRF Deputy Floor Leader, predicted that the grain problem and the ensuing increase of bread prices will disillusion even the most ardent supporters of the Democratic Left. The Movement for Rights and Freedoms expressed the hope that today's vote will produce the desired effect and the Government will stand warned to prevent another grain scam in 1996. Speaking on behalf of the Democratic Left, Mr Alexander Marinov MP reiterated the Prime Minister's appeal and the readiness of the majority "to reach agreement and work jointly for the solution of such an important issue." "I hope that the end result of this vote will be good for both Bulgaria and its Parliament," Mr Marinov observed.[03] IFOR SEEKS FOOD, MATERIEL SUPPLIES FROM BULGARIASofia, January 10 (BTA) - "Both Bulgaria and IFOR, as parties to the negotiations on this country's participation in the mission of the Implementation Force, are showing interest in the successful completion of these talks, and neither has declared a renunciation of any form of cooperation," reads the official stand adopted at today's meeting of the Consultative Council on National Security with the President. The stand was announced by the President's Chief of Staff Ivailo Trifonov. National Assembly Chairman Blagovest Sendov, MPs, Prime Minister Zhan Videnov, Government officials and representatives of the parliamentary political forces gathered at the office of President Zhelyu Zhelev to discuss Bulgaria's participation in the reconstruction of the former Yugoslav republics which until recently were at war with each other. At the meeting, several government ministers reported on the progress of the negotiations and the current situation in Bosnia-Herzegovina. "The Government of the Republic of Bulgaria has promptly contacted the Implementation Force (IFOR) amd is already holding to-the-point talks on Bulgaria's possible participation in the implementation process, according to the reports," Mr Trifonov said. This participation could take various forms, including commitment to the international police force, he added. "The Ministry of Foreign Affairs has not received any documents according to which NATO or IFOR deny Bulgaria a share in the reconstruction process," Foreign Minister Georgi Pirinski told BTA, dismissing certain press reports to this effect. Today Mr Pirinski briefed the members of the Council on Bulgaria's specific participation in the multinational forces and specifically on prospective Bulgarian deliveries in which NATO is showing interest. "Foods and maintenance supplies for military equipment are among the Bulgarian products of interest to NATO, and any order from them will be only too welcome to us," the Foreign Minister commented.[04] BULGARIA EXPECTS TO BE INVITED TO BRUSSELS CONFERENCESofia, January 10 (BTA) - Bulgaria expects to be invited to the conference on the restoration of Bosnia and Herzegovina which is to be held in Brussels in March. The conference is expected to raise serious funds and consider projects and programmes for the restoration of the region in the coming period of three to five years.Bulgaria's constructive role in the region during the Yugo conflict received recognition and so far the country has been invited and taken part in all the forums dedicated to the conflict's settlement. "We expect and we have reasons to hope that we shall be invited to Brussels in March," Chief of "European Integration" Department with the Bulgarian Foreign Ministry Emil Vulev told reporters today. He emphasized Bulgaria's position, which has been stated at all forums so far, that this country has the moral and the political right to be allowed to take part in the economic restoration of former Yugoslavia on a preferential basis. "This is not to say that Bulgaria will directly receive contracts and projects without taking part in tenders. Considering, however, this country's advantages like its proximity to the region and its traditional relations with the countries, we believe that we are in position to take an active part in the process," Mr Vulev said. The Government's Committee on European Integration discussed on Monday the country's preparations, the coordination between the ministries and the prospects for contracting companies. The Government is expected to take concrete decisions on the matter in the nearest future. Bulgaria's preliminary suggestions for cooperation with the multinational Dayton accords Implementation Forces (IFOR) include a field hospital with civil staff, civil engineers for defusing mines and ammunitions, possibilities for medical treatment and recreation in Bulgaria and repair services. "All Bulgarian suggestions were met with strong preliminary interest by NATO," Foreign Ministry expert Plamen Bonchev said at today's news conference. The conference denied the press allegations that NATO has rejected Bulgaria's suggestions. The ministers of foreign affairs and of defence are ready with a summing-up information for the preliminary talks. Concrete suggestions are also being prepared. A Government's meeting on Thursday is expected to decide on the concrete proposals which Bulgaria will present to NATO. The issue was discussed today at the meeting of the Consultative Council on National Security, which was summoned by President Zhelyu Zhelev. Bulgaria is also paying attention to the regional cooperation. In the nearest future this country will officially come up with an invitation for a meeting of the foreign ministers of the Balkan states in Sofia, Head of "Coordination and Analysis" Department Zahari Radoukov said. The latest meeting of the Balkan foreign ministers was held in Tirana in 1990. Bulgaria considers that the conditions for resuming Balkan cooperation are ripe at present. Consultations are being held for holding further meetings of the Ioannina type (a meeting of the foreign ministers of Bulgaria, Greece and Romania) and their possible enlargement with Austria, Hungary and Slovakia (the first being an EU member and the other two associate members). The Bulgarian diplomacy is also striving to enhance cooperation between the countries of Central and Southeastern Europe. A meeting of transport and communications ministers has been planned to be held. [05] "INDUSTRIAL RECOVERY IS A FACT," SAYS INDUSTRY MINISTERSofia, January 10 (BTA) - Looking for markets, attracting investment and wrestling with an imperfect legal framework were the main problems confronting Bulgarian industry last year, Industry Minister Kliment Vouchev told a news conference here today. In 1996, the Ministry will focus on coping with these problems. Export of industrial output rose 104.34 per cent in 1995, according to the Ministry's figures. Pulp and paper industry took the lead on this indicator with 178.37 per cent inrease of sales abroad, followed by the chemical and oil-processing industry, textile and knitwear industry, electrical engineering and electronics. The Ministry assigns top priority to the search for investment. Even enterprises of established market positions have severe investment problems, Mr Vouchev said. Enterprises' self- financing approximates 1,800 million leva. All investments made so far are with a short payback period and environmentally sustainable, the Minister specified. The Ministry's investment programme for 1996 envisages investment amounting to 323.15 million US dollars. Most of this money will be invested in metallurgy, 134.65 million dollars, and in the chemical industry, 105 million dollars. The Ministry is trying to redress the input/output imbalance in certain branches by introducing a government contract mechanism. According to Mr Vouchev, Bulgarian industrial output could supply power generation, agriculture, transport and the army. The problem here is the huge inter-company indebtedness and the higher-than-international prices in certain branches, above all in the chemical industry and ferrous metallurgy. The latest revision of foreign-trade regulations further facilitated export opportunities for industrial products, the Minister noted. "As Bulgarian goods compete mostly with goods made in the European Union, we tried to make sure that these revisions be consistent with the rules of GATT and the European Union," Mr Vouchev said. He argued in favour of a lifting of restrictions on import of capital goods and other items which are not manufactured in Bulgaria. The Ministry has reached agreement with the commercial banks on a reduction and rescheduling of part of the enormous debts which enterprises owe to banks. The Ministry is also working on several projects of bad debt-for-equity swaps. Winding-up is also a way out, according to Mr Vouchev. Liquidation proceedings were instituted for more than 40 enterprises in dire financial straits last year. Eighty-five privatization procedures were initiated during the year, 23 transactions totalling 1,062.7 million leva were effected, and 339.6 million leva in extra investment agreed. Unlike previous years, in 1996 the Ministry will prioritize financing applied research and development, for which funds have already been identified. In an effort to end its dependence on the National Statistical Institute, the Ministry will set up its own system for current information and financial control. Efforts will be channelled into locating fresh investment. Negotiations are being held with the Export Import Bank of Japan on a reactivation of a ball bearings production project at the Vazov Engineering Works (VMZ) of Sopot (Central Bulgaria) and with the World Bank on a package of projects for environmental protection in the heavy chemical industry. A 10.5 million dollars lent from the World Bank for the Bulgarian refrigeration industry will be utilized shortly. The Ministry is planning to intensify the funds provided by the PHARE Programme. The priority areas in this respect are accelerating privatization, increasing the share of foreign investment and improving the export potential of Bulgarian enterprises.[06] PRESS REVIEW NO CONFIDENCE VOTEToday's press reports extensively of yesterday's debates in Parliament on the opposition-sponsored no confidence vote in connection with the grain crisis in Bulgaria. "Second No Confidence Motion to Be Voted Today", runs a headline in "Continent". After almost seven-hour debates on the grain problem, the voting of the no confidence motion was left for today. The parliamentary majority insists on a secret ballot while the opposition prefers an open one, Prime Minister Videnov called upon the MPs to vote according to conscience, "Continent" writes. In an interview for this daily the Prime Minister says that the Government can solve the grain problem. "Yesterday the Prime Minister preferred to play the role of a political leader. He did not say whether groupings close to the Cabinet were involved in the grain affair and did not mention whether and to what extent cabinet ministers and the prime minister himself are responsible for the crisis. Videnov once again gave a firm shoulder to the Cabinet and to the results of its rule. In this sense he preferred the stronghold of silence," according to a signed article published in the same daily."Troud" writes that the Government has shown its inability to rule. Eighteen Socialist MPs want its resignation, according to this daily. "The opposition's no confidence motions help justify the existence of the Cabinet," Bulgarian Socialist Party (BSP) spokesman Nikolai Kamov, Chairman of the parliamentary Foreign Policy Committee, says in an interview for "Troud". This daily also runs an interview with Alexander Bozhkov of the Union of Democratic Forces (UDF) who calls the Socialist Government "incompetent and criminal". "If the BSP supports this Cabinet, as its intentions are, then it simply does not deserve to govern Bulgaria," Bozhkov told "Troud". "Firms Make 3,000 Million in Grain Affair" runs a headline in the private "24 Chassa" daily which claims that this country will run out of wheat in two months. Former finance minister in the cabinet of Filip Dimitrov and now leader of the UDF Ivan Kostov calculated that the present average monthly wage buys 100 loaves of bread less than the average wage in 1992, "24 Chassa" writes. In an editorial this daily writes that for the first time yesterday the BSP praised the opposition for moving a no confidence vote on a serious problem, "The UDF waited in vain for its disclosures to draw the support of the red MPs dissatisfied with Videnov, However, Videnov should realize that yesterday the opposition was not engaging in demagoguery but speaking the truth," "24 Chassa" writes. "Zhan Videnov's Vote Will Not Fill the Granaries," the opposition "Demokratsiya" daily writes in a headline. The subheading says that red firms made enormous profits from the grain crisis and the flour black market. "The proven frauds, however, did not make the BSP MPs see reason. The majority defended its ministers apathetically but will support them today. "Standart News" writes that the BSP has left the dismissal of ministers for this spring when its leadership and parliamentary group will have analyzed the one year rule of the left-wing, this daily writes citing Agriculture Minister Vassil Chichibaba and Interior Minister Lyubomir Nachev as saying that they do not feel responsible for the grain crisis. [07] 5 Mln LEVA MISSING FROM BANK SAFE"24 Chassa" says that Russia offers money for the safety tests of Power Unit One of the Kozlodoui Nuclear Power Plant, on the Danube. Templates of the reactor of Unit One can be taken no sooner than April. Moscow is ready to provide the financing for the tests, the daily writes quoting the chief of the Committee for Peaceful Uses of Atomic Energy, Yanko Yankov. The European Commission also pledged to provide funds for the tests. Kozlodoui experts, however, are against the tests believing that taking templates poses a danger, this daily writes.The press publishes extensive stories on the upcoming general meeting of the Topenergy Bulgarian-Russian gas partnership. The general meeting is expected to open by the end of this week after it was suspended on December 19, 1995. Topenergy Managing Board Chairman and former prime minister Andrei Loukanov is quoted as saying the representatives of Gasprom, the Russian partner in the joint venture, are expected to arrive here today. The general meeting is expected to name the new shareholders in the partnership. A poll of the Angora pollsters carried out for the "Continent" daily, found Prime Minister Zhan Videnov and President Zhelyu Zhelev share "people's love". The Prime Minister was named by respondents as politician of the year, the President following immediately after. Both are way ahead of the rest in their approval rating. The poll has representative character and covered 1,180 respondents. Bulgarian footballer Hristo Stoichkov was named sixth in a FIFA Footballer of the Year poll. He got 37 points, just as much as Chilean Ivan Samorano of Real Madrid. All dailies write about Milan striker George Weah who was first in the poll. "Troud" says the CEO of the Balkan Holidays - London tour- operator, Stefan Dragostinov, has been dismissed. Dragostinov was urgently summoned in Sofia on Monday and relieved of his office by the Board of Directors of Balkan Holidays International. He was replaced with Nikolai Antonov, a former steward and chief of the reservations section at the London office of the company. "Troud" recalls that the liabilities of Balkan Holidays International amount to USD 3 million and GBP 1 million, with the London affiliate accounting for GBP 1.5 million of them. [08] 32.89% INFLATION IN 1995Sofia, January 10 (BTA) - Inflation was 2.6 per cent in December, said the National Statistical institute today. Flour has gone up nearly 12 per cent and white bread 5.4 per cent. Almost no mark-up is observed with meat and meat products.The annual inflation for 1995 is calculated at 43.89 per cent. Services account for the largest appreciation of nearly 57 per cent. According to official figures, inflation in Bulgaria has dropped almost four times since 1994 when it was 120 per cent. The official inflation figures are challenged by the Confederation of Independent Trade Unions in Bulgaria (CITUB). Experts of the trade union claim that the annual inflation in 1995 amounts to 68.8 per cent, which is almost twice as much the official figure. In their view the discrepancy is due to the different consumer baskets used as a basis for calculation. While the basked of the trade union experts includes 578 goods, the official statisticians use a basket of 1,400 goods. |
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