Giwrgos Kapodistrias
From: [email protected] (Embassy of Bulgaria)
Subject: BTA inf/ Mar. 28, 95
BTA - BULGARIAN TELEGRAPH AGENCY BULLETIN OF NEWS FROM BULGARIA
The cabinet today decided that 6,000 million leva in the 1995 national budget be allocated for solving the existing housing problems. This is three times more that last year's figure, Finance Minister Dimiter Kostov told journalists. The cabinet discussed a draft decision for urgent measured to address the problems of housing, drawn up by Minister of Regional Development and Construction Doncho Konakchiev. A decision was taken to set up a group with the interagency council on regional development and local government to work on the housing policy and develop a long-term program on its implementation.
Deputy Prime Minister and Minister of Economic Development Roumen Gechev will lead a Bulgarian delegation to the annual meeting of governors of the European Bank for Reconstruction and Development due on April 10 and 11 in London. The delegation, whose members the cabinet named today, includes central bank Governor Todor Vulchev.
The cabinet approved an intergovernmental agreement in culture, education and science between Bulgaria and Egypt.
The cabinet also approved a draft intergovernmental agreement on mutual investments promotion between Bulgaria and the Sultanate of Oman.
Foreign Minister Georgi Pirinski reported on the preparation of the March 30, 31 visit here by Greek Foreign Minister Karolos Papoulias.
Today's sitting of the cabinet approved the cash privatization section of the draft privatization program submitted by Deputy Prime Minister and Minister of Economic Development Roumen Gechev. Projections set the budget revenue from cash privatization at 20,000 million leva. The program envisages that 600 enterprises be denationalized and privatization procedures opened for another 450-480 units. "One fifth of the national economy will go the private hands by year's end and we will seek ways to speed up the small privatization," Chairman of the Privatization Agency Supervisory Board Vesselin Blagoev told the press. He believes that tourism, the food-processing and transport industries should get special attention. The cabinet will also submit to Parliament the voucher privatization section of the privatization program. The list of the enterprises subject to voucher privatization, however, will be drawn up later, probably in September, as mass privatization itself will hopefully be taken off the ground in November 1995, said Yosif Illiev, Executive Director of the Center for Mass Privatization.
At its session today the cabinet discussed the interrelation between the draft budget and the structural policy. Finance Minister Dimiter Kostov told journalists that this was the second discussion of the 1995 national budget draft and that the next Government session would also be devoted to the draft budget. "We discussed issues related both to the revenues and to the expenditures side, but above all the achievement of a balance between the budget and the policy of economic adjustment - privatization and the financial discipline of the enterprises and the banking sector, Kostov said. Privatization revenues have not been included in current expenditures, with the exception of expenditures on environment protection and agriculture, the Finance Minister said. Privatization revenues will be channeled into easing the burden of the national debt, he said. The Government will seek to restore financial discipline in the enterprises. Finance Minister Kostov recalled that towards the end of the third quarter of 1994, the enterprises owed the national budget a total of over 42,000 million leva and 10,000 million leva to the social insurance funds. Loss-making enterprises, accounting for two-thirds of the total losses in the economy, will be placed under observation and control, Kostov said. The government also intends to tighten discipline in the banking sector. The banks should refrain from extending credits to enterprises for covering losses. According to Finance Minister Kostov, the tightening of tax discipline is also of considerable importance. The draft budget provides for expenditures on subsidies to total 8,400 million leva which will be allocated to assisting structural adjustment in power engineering, railway transport and public and passenger transport. The budget allocates 2,123 million leva to agriculture, including for covering the debts of this sector. The budget will also finance extra-budgetary accounts and funds. Thus, for instance, it allocates 2,700 million leva to the structural adjustment of mining and about 1,000 million leva to the Land Fund. State expenditures on the economy will total 15,000 million leva, 7,500 million of which will go to agriculture, the Finance Minister concluded.
Colonel General Tsvetan Totomirov, Chief of the Bulgarian General Staff, will visit Hungary from March 29 to 31, at the head of an official military delegation, the Defense Ministry's press office said. A program for military cooperation between the Defense Ministries of Bulgaria and Hungary in 1995 is expected to be signed.
In accordance with Bulgaria's rights under the Conventional Forces in Europe Treaty, a team of the Bulgarian General Staff will inspect a Hungarian military unit from March 29 to 31, the Defense Ministrys press office said.
A Canadian delegation led by Eric Dequenn, Chief of the Central and East Europe Department with the Canadian Foreign Ministry, arrived here today, at the invitation of the Bulgarian Industrial Association (BIA). The delegation includes civil servants of the Quebec province and businessmen working in the telecommunications, transport and pharmaceutical industries as well as in the field of air traffic control. "We are here to study the opportunities for investment and setting up of joint production lines," Dequenn said upon his arrival. "The 1994 trade between Bulgaria and Canada amounted to 36 million dollars; Bulgarian exports to Canada account for 29 million dollars," BIA Chairman Bozhidar Danev said. The Canadian businessmen have offered projects and investment in railway transport, the construction industry and in training of air-traffic controllers. Consultants of Canadian pharmaceutical companies will study the opportunities available in the Bulgarian medical industry for joint production of medicines. All projects and studies will be financed by the Canadian side. Tomorrow the Canadian guests will have working meetings at the Trade Ministry.
The radiation levels in Danubian Dobroudja during the weekend were within the norms, the Civil Defense Service today told BTA's local correspondent in Silistra. This report was prompted by press allegations about radiation contamination of the area from the Hmelnizky Nuclear Power Plant in Ukraine, that alarmed local people. Radiation measured 0.012 to 0.02 miliroentgens/hour which, experts say, is ten times lower than the critical level and poses no health hazards. After the Chernobyl accident, radiation in Doulovo and Toutrakan measured 0.07 to 0.08 miliroentgens/hour. Measurements are taken three times a day. No changes in radiation were identified this morning.
Deputy Prime Minister and Minister of Economic Development Roumen Gechev today received Fabrizio Ossella, permanent representative of the UN Development Program for Bulgaria, said the cabinet's press office. The guest showed particular interest in the measures the cabinet takes to improve the living standards in this country. He stressed the UN Development Program has serious plans for helping the Bulgarian government to have the lowest possible social price of the transition. Roumen Gechev said for his part that to find effective solutions to its economic problems, this country needs the help of international organizations and institutions. That is why the cabinets actively seeks cooperation with the European Union, European Bank for Reconstruction and Development, the UN, International Monetary Fund and the World Bank, said he.
Expansion of the contacts and cooperation within Partnership for Peace (PfP), the situation in the Balkans, regional and European security were high on the agenda of today's talks of Deputy Defense Minister Dimiter Vitkov and Deputy Chief of General Staff Colonel General Petko Prokopiev with Major General Gunar Lange, head of the PfP coordination center. General Lange arrived to this country yesterday. He commended the performance of the Bulgarian officers accredited to the PfP coordination center in Mons, Belgium. The talks also discussed problems pertaining to staff training, joint military exercises within PfP and contacts at different levels. Later today General Lange left this country for Kiev, the next stop on his European tour.
Acting Chairman of the Committee of Sport, Youth and Children Hristo Hristov today returned from Greece where he signed a protocol on bilateral exchange in sport. The two countries' sport leaders agreed to assist joint projects launched under Council of Europe and European Union programs.
Deputy chief of Foreign Ministry Consular Department Nikolai Kaloudov today met journalists to expound yesterday's entry into effect of the agreement with the Schengen Group. He voiced a hope that Bulgaria will be admitted to the Schengen Group, as first it get equal treatment with the Visegrad countries. Bulgarian citizens have already called the Consular Department to protest against having to wait nearly two months for a Schengen visa.
The National Bank of Bulgaria (BNB) plans to decrease the base interest rate, which is 72 percent at the moment, as from the beginning of April, "Standart News" writes referring to the Balkan News Agency. BNB chiefs confirmed the change in base interest, the paper says recalling that the International Monetary Fund also demands to bring down interest rates. The Government insists on lower interest rates as well, in order to reduce expenses on the servicing of the internal debt. BNB was planning to decrease the base interest already a month ago its Governing Board postponed the decision for fears the exchange rate of the US dollar might surge, according to "Standart News".
The IMF will extend 93 million US dollars before the end of 1995 for the completion of the Chaira Pumped Storage Electric Power Station and the innovation of Unit 8 of the Maritsa-Iztok 2 Termo-electric Power Station, "Continent" writes referring to an interview Dyanko Dobrev, Director of the National Electricity Company, had with the Balkan News Agency.
Bulgarian private companies have utilized only 12.5 million of the 50 million US dollars loan floated by the World Bank for the promotion of private enterprise in Bulgaria, "Standart News" says. eight projects have been approved so far. Another 20 are awaiting consideration by Washington. The Bulgarian companies are not capable of making reliable programs and this is what hinders the utilization of the loan, the paper writes quoting bankers. A week ago the World Bank said it was about to float another 50 million US dollars designed for private business in Bulgaria, the paper says further on.
Foreign companies will invest 180 million US dollars in oil drilling in Bulgaria this year, "24 Chassa" writes referring to information released by the Committee of Geology and Mineral Resources. Since 1991 foreign companies have spent 120 million US dollars on exploration projects in Bulgaria. Experts say that there are about 39 million tons of oil and 139 million cu.m. of natural gas in this country. However, Bulgaria has neither money nor equipment to prospect the deposits on its own, the paper adds.