BALKAN INFORMATION POOL
1606 Sofia, 19 Macedonia Blvd., tel.: 540 222, fax: 520 009, e-mail:bip@mbox.infotel.bg
 

LEADING HEADLINES
TRUD Ilia Pavlov at a mason’s meeting 24 CHASSA Foreign money deposits in SSF SEGA Kavaldjiav: UDF failed MONITOR The sunrise of the masons	STANDART Bulgaria army left without sugar and fuel DEMOKRATSIA The free medicaments are in the pharmacies again DUMA Bankruptcy. The healthcare endure three more months PARI DSK bank launches foreign currency operations	THE LAST 24 HOURS PRESS ROUND-UP ADDITIONAL ARTICLES ECONOMIC NEWS ECONOMIC ROUND-UP CURRENCY EXCHANGE RATES WEATHER

 

Nikopol air was polluted again by the Romanian chemical plant in Turno Magurele, announced by the citizens protection service in Pleven. The value of the ammonia surpassed with 3.6% the permissible concentration. This is the 10th case since the beginning of the year.

The list of the free medicaments that the National health insurance fund /NHIF/ will provide is distributed to the pharmacy network, announced the NHIF CEO and Sofia mayor Stefan Sofianski. He added before the National radio that he is going to withdraw from the post when all the organization problems will be solved.

From the citizens movement ‘Gergiovden’ said on occasion of the start of the health insurance system, that it is possible that the funds for health care to be exhausted soon because 9% of them are used for other purposes.

The lists with the ratings from the national test for the high schools were exposed in 20 capital schools.

In Sofia was opened a municipal house for temporary settling of orphans. The house will be named ‘St. Sofia’ and will be situated in the ‘Zaharna fabrika’ district and will receive 190 children above the age of 16.

A trilateral meeting between Bulgaria, Macedonia and Albania was held in Skopje. The finance and the building of the transport corridor N 8 was described as a common priority.

The changes in the energetic sector are important for the Bulgarian economy. They will be decisive for the Bulgarian EU integration, is said in a letter from Frank Mutkovski /ph/, chairman of the US senate energetic commission, to the vice-premier Petar Zhotev. The efforts of the Bulgarian government to reform the Bulgarian economy and the joint association for modernization of HPP ‘Maritza Iztok III’ between ‘Energy’ and NEC were highly evaluated.

Despite the possible changes in the election law NMRF is for joint presentation in coalition with the UDF to the next parliamentary elections, announced the leader of the formation Gunner Tahir. The formation will search for contacts with the UDF and the Euroleft. Interactions with MRF are also possible. There is no reply from the Ahmed Dogan’s central, but the local contacts already began.

The big federation council ‘Tzarstvo Bulgaria’ /Bulgaria kingdom/ decided to participate independently in the next parliamentary elections but they are going to negotiate with all the political powers for the creation of central coalition. Such negotiations were held with IMRO, ‘Gergiovden’ and the Euroleft.

The traditional fair of the Karakachans will be held in the ‘Karandila’ countryside for the ninth time. Songs and traditions were presented near a restored settlement. The bishops of Sliven and Ksani served a celebrate mass.

Lebanon to send new ambassador in Bulgaria
Trud

The decision for the recall of Ambassador Michel Abuhater is a result of the visit of the Lebanon community in Beirut in January. Mr. Abuhater did not develop the relations between the two countries and did not protect the interests of the Lebanon. Mrs. Michlin abu Samara /ph/ will replace Mr. Abuhated, announced informed sources. She was collaborator of the former Lebanon ambassador Husein Musai /ph/, who have two consecutive mandates in Sofia.

USA criticizes Bulgaria for the corruption
24 chassa

Bulgaria was criticized for the corruption in a report of the US trade ministry, announced BBC radio yesterday. Bulgaria, Austria, Hungary, the Check republic, Slovakia, Switzerland and Spain will be reproached for the inadequate measures against the corruption.

Kostov ready with a model for foreign investments
Demokratsia

Premier Kostov said that his visit in Saltsburg made possible the clear up of the model for attraction of foreign investments. Bulgarian Premier and his Macedonian colleague gave common press conference on fifth annual economical meeting for Central and Southeast Europe.

Balkans – the building ground of europe
Demokratsia

‘I‘m sincerely hoping that the Balkan’s infrastructure will play the same role as the coal and the steel had for the West Europe after the World war II, President Stoyanov said at the forum of Crant Montana - Switzerland.

There are no problems between sofia and moscow
Duma

There are no political problems in the relations between Bulgaria and Russia. This was announced after the one-hour meeting between Russian foreign minister Igor Ivanov and Bulgarian ambassador in Moscow Ilian Vasilev. The chief of the Russian diplomacy said that Bulgaria should refrain from sudden moves for European-Atlantic integration.

British ambassador lost in the rhodopes
Standart

UK ambassador Richard Stag panic the whole diplomacy mission disappearing for more than three hours in the countryside near the ‘Diavolskoto Gurlo’ cave. Ambassador Stag was invited to open the cave restored with money from UK know how fund. Early in the morning Mr. Stag and his wife Arabella left for the cave. They insisted to walk without guards and leader in the forest. Three hours later a car drove them from the Yagodina village.

udf to chase the betrayers
Trud

‘There is no place in the party for villains and betrayers who announce to the media information about the party problems and protests against the UDF NC decisions’, premier Kostov relied to a question about the punishment of Dr. Ianko Stanev’s punishment yesterday at a blue seminar in Varna. The later was the former party leader in Varna.

letters and gifts received by the Bulgarian medics in libia
Trud

The arrested medics appear calmer and with a better spirit at the meeting with the Bulgarian consul in Tripoli, announced FM spokesman Radko Vlaikov. The meeting continued nearly 50 minutes was held in the Bureau for people claim. The six were driven in a civil car. The consul Emil Manolov gave to them the letters and the gifts sent by their relatives. In Mr. Manolov’s opinion Dr. Zdravko Georgiev looked better.

400 Bulgarians select libya
24 chassa

‘I’m not afraid, I’m leaving for the first time for Libya’, said Dr. Tzvetkov /ph/ yesterday before he enter the plane. 20 medics went to the Djamahiria. They will work one year in the Sepha town. The firm hired the medics is the Libyan ‘Interwork’. It has a mission in Bulgaria. Another 400 Bulgarian are expected to leave in a month.

Kostov announced new economy policy
24 chassa

Bulgarian premier was satisfied with the fifth economy meeting for Central and East Europe in the Austrian town Salrsbourg. He tried to convince the politics, businessmen, and financiers present at the meeting that their expectations for Bulgaria were more pessimistic than the reality is. He said that Bulgaria is expecting to be noticed by EU as island of stability in the region.

Bundjoulov left the euroleft
Demokratsia

Andrei Bundjalov followed the example of Kammov, Radoev and Karadimov, and announced that he is leaving the Euroleft. ‘I’m doing this to give a dimension of my activities in the ‘Socialdemokrati’ movement’. The movement will be registered in the court according to the law for political parties. The Euroleft leader Tomov, warned that he will consider the members of the two formations as excluded from the party because its rules do not permit double membership.

Common celebrating at bouzloudja made bsp angry
Trud

The BSP-Sofia chairman and BSDP honorable leader Dr. Petar Dertliev will discuss the question for common celebration at Bouzlodja and the social-democracy referendum.

gergievden demands asen agov’s retirment
Duma

Asen Agov should retire as chief of the NA commission for foreign policy, after for the second time spoke for independent Kosovo at the forum ‘Democration encouragement in Southeast Europe’ in Berlin. Luben Dilov jr. said this yesterday. He demanded by the Premier Kostov, NA chairman Yordan Sokolov and Foreign minister Nadejda Mihailova if they support the statements of the blue MP.

The sunrise of the masons
Monitor

The free masons from all over the world that in Bulgaria was established the High council of the brotherhood. Among the gathered yesterday at the Japanese hotel are Ilia Pavlov, Stoyan Denche, Stoyan Alexandrov, Vejdi Rashidov, Andei Pantev, Iavor Milushev and Vasil Michailov. The masons from Bulgaria, USA, Portugal and Italy collected at the ‘Kempinski-Zografski’ hotel to announce the establishment of the High council under the guidance on the High council – mother, ‘South jurisdiction council of USA’

SSF to collect foreign money deposits
Standart

The State savings fund is going the accept deposits in foreign monay, announced the bank. The service will start at the central of the fund on the 19 ‘Moskovska’ street. The next three monts the service will be available in all the branch offices.

Kavaldjiev: UDF failed
Sega

‘I have signals for the corruption of more than 15 people in the government, the party leadership and the prosecution. I give everything to the prosecution’, said the vice-president Todor Kavaldjiev before the ‘Express radio’. The vice-president said that UDF failed in its government, and that thinks like communist.

bsp wants consultative council to discuss large deals
Pari

The Bulgaria Socialist Party /BSP/ will suggest that the large privatization deals, such as the Bulgarian Telecommunications Company, Bulbank, Bulgartabac and the National Electric Company, are discussed by the National Security Consultative Council of the president, scheduled for July 3, leader Georgi Parvanov said. The topic, currently scheduled is not urgent at the moment. It concerns Bulgaria's membership in NATO, he explained. The socialists demand that full information is presented on the specified deals at the session, as the way these deals proceed, jeopardizes the national interests, and we want to hear what the head of state thinks about them, Parvanov stated. This is the only way for the president's consultative council to show it is something more than a decorative body, said BSP's Petar Dimitrov.

The following articles can be sent on request (within 36 hours) and are subject to additional payment.

1. Duma – Stop paying the external debt

Interview with president’s economic aide Prof. Geoffrey Sax

2. Demokratsia - Interview with agriculture Euro-commissar Franc Fischler

3. Demokratsia – The EU enlargement means relations and values, Eniko Landaburu, EC’s GD’s expansion director.

4. Demokratsia – We want to build plants with Bulgaria

Interview with deputy foreign minister of Egypt Mai Abul Dahap.

5. Demokratsia- Bulgaria will take its place in the concert of European nations

Interview with cardinal Paul Pupar

6. Demokratsia – Second reformation in the Catholic Church

7. Demokratsia – On the Balkan is deciding if we are going to return back to the Cold War.

Interview with Stanford’s professor Richard Rorty

8. Demokratsia – The need for Europe – view from downside

9. Demokratsia – Our country is quested partner

Interview with Prof. Dr. Julia Zaharieva

10. Monitor – The trial against Bulgaria medics in Libya should not affect the relations

Interview with Ambassador Hassan Madjid Al-Saffar

11. Duma –There are some hidden ways for the party to take the power

Interview with Dr. Ditmar Keller

12. Duma - Nefarious privatization to be punished

13. Monitor – You are dropping behind in the economy policy and the grow

Interview with IMF mission Chief Uha Kakonen

The Bulgaria State Railways /BDZ/ will raise passenger tariffs by an average of 10% from July 8 to catch up with inflation. The increase is aimed at compensating inflation accumulated since the last increase on October 1, 1998, BDZ's director general Vladimir Dunchev said. The biggest increases of an average of 20% will affect short distance.

Crude processing in Bourgas-based LUKoil-Neftochim has increased 3% for the first five months of the year, the refinery told the PARI daily. The owner of the refinery refuted trade unionists' assertions that there was a rapid drop in the processed volumes.

The foreign debt of the country as on end-April comprises 77% of the GDP, the central bank announced. last year the figure stood at 81.5%. The lesser share is explained with the larger economic growth and the decreasing liabilities to foreign lenders.

850 workers at Arkus AD have not had their contracts renewed as from July 1 and will be registered at the labour bureaus. According to executive director Banko Vankov, the reason for that is that 8 banks have refused to extend credits for turnover capital and that no payments have been received on 6 contracts with foreign partners.

The European Investments Bank /EIB/ will provide funding for the construction of the second half of Thracia high way and the contract will be signed on July 28, said minister of regional development Evgeni Chachev. He will discuss with EIB officials the funding of the second Danube bridge.

US Peace Corps volunteers take lessons in Bulgarian in Dupnitsa. The launch of the next two-year programme of the Corps was attended by Ambassador and Mrs Miles. America plans no changes in its visa regulations for any country, including Bulgarian the diplomat said.

AIG group plans long-term investments in Bulgaria

Bulgaria is a priority country in AIG Group's investment intentions, and more specifically in the field of pension insurance, telecommunications, power generation and media, said Frank Wisner, vice chairman of the US financial group. During his two-day visit he had talks with deputy premier Petar Zhotev, met with senior officials of the major ministries, the central bank and the Insurance Supervision Directorate /ISD/. We monitor the development of the Bulgarian economy attentively and what we see is quite encouraging, Wisner said. AIG Group would like to take part also in the privatization of hydroelectric power stations, he added. Tax policies relevant to the insurance business need to be reconsidered, Mr. Wisner stated. Taxation should be imposed on the net profit, like in Western Europe and Northern America, not on the gross income, he explained. Life insurance needs incentives, for instance through tax relieves. The ISD told me they would draft amendments to the insurance and taxation legislation complying with the EU standards, Mr Wisner said.

Kpn-ote upsets btc’s tender

The tender for delivery of 20 digital telephone exchanges has been upset for a second time. The reason for that is a letter sent by the OTE-KPN consortium. The candidate to acquire the controlling package in the Bulgarian Telecommunications Company (BTC) has threatened the Privatization Agency /PA/ that if an agreement is signed with the suppliers, in the capacity of new owners of the BTC they may claim damages for the losses to be suffered from future cancellation of the tender. That is not the first time when the consortium has tried to force their will although there is no deal on BTC yet, an expert commented a day ago. Contrary to all rules OTE and KPN have access to all confidential documents, as has happened with the offers submitted by Siemens and Ericsson for the tender. I suspect OTE wants to award the contract for delivery of the exchanges to Intracom, the expert said.

Russia ready to take part in new NPP facility

Russia is ready to take part in the construction of new nuclear facilities, replacing the decommissioned, should the government adopt such a project, said the Russian ambassador Vladimir Titov during his visit to the Kozlodui NPP. The guest was acquainted with the progress in the reconstruction and modernization of the four smaller units and with the modernisation programme for Units V and VI, conducted with the participation of Russian organizations. It is expected that Russian will finance the modernisation of the two 1000 MW units with USD 90 million. Ambassador Titov was invited to visit Kozlodui by the NPP's ED Yordan Yordanov. The Russian-Bulgarian cooperation in the field of nuclear power generation is a major part of our overall partnership, the diplomat said, adding that mutually beneficial solutions are available regarding the spent nuclear fuel issue and the partial funding of safety projects. A Bulgarian delegation is expected to visit Moscow soon to discuss the bilateral cooperation in the field of power production, it emerged after the meeting.

Turkey objects sofia’s role in german balkan project

The Turkish Union of Chambers of Commerce and Commodity Exchanges objected the Sofia's to become the hub for a project, developed by the Association of the German Chambers of Commerce /DIHT/ and the Bulgarian Chamber of Commerce and Industry /BCCI/. DIHT's officials presented the bilateral initiative at the general meeting of the Balkan Chambers of Commerce held in Istanbul Friday. The project is developed under the Stability pact programmes and targets the countries that were most seriously affected by the war against Yugoslavia, providing a venue to enhance their cooperation with the EU. The project is financed by Germany and can involve only Bulgaria, Macedonia, Rumania and Albania. As a donor country in the Stability Pact, Turkey is not entitled to subsidies, but it can take part in a training program, said a DIHT representative. The project's goals concern harmonization of the legislation, improving the business climate, and consulting small and medium-size businesses. The Greek project did not encounter objections despite its close relation with specific Greek interests. Under its terms companies will be eligible to participate in the project only if they are Greek physical or legal entities with more than a 50% Greek stake. BCCI's chair Bozhidar Bozhinov proposed that in the future the Balkan Association hold remote conferences in order to save time and money.

Kremikovtsi negotiating with voeest alpine

Kremikovtsi iron and steel works posted a BGL 179.906 million loss for last year after a BGL 66.181 million loss in 1998. Last year's losses were accumulated while the plant was still state-owned, Kremikovtsi's chief executive officer Valentin Zahariev told the annual shareholders meeting. After we took over, we separated loss-making facilities from the core operation and expect to have a profitable year, said Zahariev. Local Daru Metals firm bought 71% in Kremikovtsi in June 1999 for a token price of one dollar, a pledge to invest USD 300 million over five years and pay BGL 850 million in debts to creditors, suppliers and the treasury. The plant, which accounts for 80% of Bulgaria's ferrous metal output, had a 13.005 million lev profit for January-May this year. Kremikovtsi is in talks with the Austrian steel group Voest Alpine to set up a joint venture to upgrade and manage Kremikovtsi's continuous steel casting. Through this arrangement the plant hopes to repay Kremikovtsi's USD 70 million debt to Austria's Kontrol Bank.

Bulbank sold to unicredito/alliantz

The Bank Consolidation Company (BCC) approved a draft contract for selling the whole, 98% stake in Bulbank for EUR 360 million to the consortium of UniCredito and Allianz, deputy prime minister Petar Zhotev told reporters after Friday's meeting of the bank privatization autjority. BCC's board of directors voted unanimously the contract for the sale of Bulbank to UniCredito/Allianz to be signed no later than July 14. The Italian bank receives 93% of Bulbank's capital; the German insurer takes 5%. They will keep the shares of Bulgaria's biggest bank for at least three years. During the negotiations the price was raised by EUR 10 million, Zhotev explained. The EUR 360 million price takes into account the sale of the bank's stakes in UBB, Corporate Bank and Hypovereinsbank. The consultants assessed UBB's shares much higher than the paper value included in the bank's balance sheet, Petar Zhotev explained. The contract for Bulbank's sale will be signed after it receives the approval of the BNB and Italy's central bank, as well as of the Commission for Protection of Competition. EUR 15 million will be blocked for 18 months in a trust account. The whole price will be paid on the day the deal is signed and the shares are endorsed. Zhotev commented that no higher price could be expected. One of Bulbank's problems is actually its overcapitalisation. For good or bad the bank has a 20% credit portfolio as compared with its assets and it is very conservative, Petar Zhotev explained. None of the three candidate buyers has wanted to buy less than 67% in the bank, Zhotev disclosed.

Healthcare reform finally launched

A launching party was cast at the healthcare bank by minister Ilko Semerdzhiev, marking the start of the healthcare reform in Bulgaria. The Soviet system of medical services was finally brought to an end and the first result can be expected no later than three months from now, he said. No more bosses and chiefs, only you will be responsible about organising your work and treating the patients, he commented before doctors. The scandals accompanying the implementation of the reform however show no signs of fading away. Most of the doctors used the first day of the new healthcare system to make repairs in their offices. On Sunday most of the former polyclinics were closed, a check of the PARI daily showed. The secretary general of the Podkrepa Labour Confederation, Dr Evgeni Dushkov said on Friday he would submit to the prosecution information generating doubts about violations, related with the contract with the US company AmeriSoft, which will develop the healthcare bank's software. Podkrepa's chairman Dr Konstantin Trenchev said that the company had announced before the US Commission on stock exchanges that the contract is worth USD 37.5 million, while the health minister announced the amount is ten times less, i.e. USD 3.7 million. We cannot be held responsible about what a US company declares in the USA or in the Internet, the healthcare bank said.

Balkanpharma’s dupnitsa, troyan companies raise capital

The shareholders of Balkanpharma of Dupnitsa and Balkanpharma of Troyan decided last week to raise the capital of the two companies. The pharmaceuticals maker in Dupnitsa posted in 1999 a 131.5% increase in medicine sales abroad as compared with the previous year. Revenue from the company's operations last year amounted to BGN 74.7 million. The net profit of BGN 7.009 million will be reinvested. The shareholders decided to raise the company's capital from BGN 663,531 to BGN 3,317,655 through a new issue of shares with a par value of BGN 1. Balkanpharma of Troyan also decided to raise its capital from BGN 310,498 to BGN 1,552,490. The company will use the money to introduce the GMP standard and to develop new medicines. The shareholders decided not to pay dividend and to reinvest the company's entire profit for 1999.

Source: BNB
These exchange rates are based on art. 29, par. 2 of the Law on the BNB and Reference Rates of ECB for the corresponding day, and they are applied for statistical and accounting purposes only.

On July 3, 2000 the weather will be sunny and hot. Max temperatures in the country will be around 32-36.