In July citizens of Plovdiv were buying most expensive tomatoes.

 

Varna proved to be the most expensive city in Bulgaria, shows the analysis of the last-month's food prices prepared by the State Agency for Bourses and Markets. In July tomatoes were most expensive in Plovdiv and Varna - there they sold at 0.89-0.84 levs a kilo. Water melons were the cheapest food in July - 0.33 levs a kilo. Grapes sold at 3.93 levs and peaches, at 1.41 levs. Zucchini were the cheapest vegetable - only 0.20 levs per kilo.

 

 

Rosalina Dimitrova

 

"Vazrazhdane" Club buys out bonds emission of the BG seaside capital.

 

Members of the "Vazrazhdane" business club will buy out bonds emission worth of 3 million euro that Varna municipality is to release on the internal financial market, said chairman of the club Emil Kjulev. Mayor Kiril Yordanov announced the credit rating of Varna. The grade was B2. In the first six months of the year members of the club invested over 100 million levs in Varna, Kjulev said. By the end of 2002 the investments will double up. They are channeled primarily to tourism and privatization.

 

 

 

and other historical landmarks, envisages a bill on the amended Cultural Monuments Protection Act. The aim is wealthy Bulgarians to be given a chance to build roads and hotels close to the historic sites and to sponsor the excavations. Foreigners may well be granted the same right.

 

 

 

Bulgaria Recovered from 1996-1997 Crisis Rapidly, IMF Says in Latest Report.

 

Sofia, August 6 (BTA) - Bulgaria has made a rapid recovery from the crisis it suffered in 1996-1997, the International Monetary Fund (IMF) says in its latest report published on the IMF Internet site.

 

On July 22, the Executive Board concluded the consultation with Bulgaria under Article IV that provides for the holding of such bilateral consultations with all IMF member states.

 

A robust turnaround took hold in 1998 and by end2001, real GDP had increased by 16.5 per cent over four years, inflation had been lowered from near-hyperinflation levels to single digits, and external debt had declined from more than a 100 percent of GDP to 70 percent of GDP, the IMF report says.

 

These results owe to a policy framework anchored on a currency board arrangement and featuring a prudent fiscal policy, strict incomes policies for state-owned enterprises, and a comprehensive structural reform program aimed at creating a fully-functioning and competitive market economy.

 

The currency board continues to enjoy broad support domestically and has engendered confidence in foreign investors, contributing to its continued viability. In support of the currency board arrangement, fiscal policy has been cautious and flexible, allowing the fiscal deficit to decline to near balance. In the same vein, caps put on the wage bills of struggling state-owned enterprises have contributed to moderate wages increases in the economy, keeping inflation in check and safeguarding Bulgaria's competitiveness.

 

Significant progress has been made in reforming the economy. Almost all non-infrastructure enterprise assets and four-fifths of bank assets have been privatized; bank supervision has been improved; trade and price liberalization have been achieved; and the overhaul of the pension and health care systems is well advanced. However, progress has been more limited in improving the efficiency of the public administration, and in rationalizing the health care and education systems. Also, key enterprises have yet to be privatized and the pace of reforms in the energy and transportation sectors has been slow. In addition, Bulgaria still has to reform key institutions and laws to increase the country's attractiveness as a place to do business.

 

Policy implementation in 2001-2002 remained strong in the face of unfavorable external developments. Consistent with its policy framework, Bulgaria has maintained a prudent fiscal policy, with the general government registering a small deficit of 0.9 percent of GDP in 2001 and a surplus of about 0.9 percent of GDP through June 2002. Also, strict wage ceilings were maintained on public enterprises. In early 2002, Bulgaria conducted a debt swap operation, which limited external risks by reducing the face value of the debt, lengthening the maturity structure, and increasing the share of Euro-denominated and fixed interest rate instruments. Progress in restructuring the
economy included passage of the privatization law, issuance of tenders for the sale of several key public enterprises, and reforms in the energy sector. The latter included notably, increases in electricity and district heating prices toward cost-recovery levels and preparations for the privatization of the electricity distribution companies.

 

Macroeconomic performance in 2001-2002 has been good.

 

Despite the slowdown in Bulgaria's main trading partners, particularly the European Union (EU), 12-month real GDP growth reached 4 percent in 2001 and 3.2 percent in the first quarter of 2002, slightly lower than at the end of the same quarter in 2001.

 

Year-on-year inflation accelerated moderately from 4.8 percent at end-2001 to 5.2 in end-June 2002, reflecting temporary factors, including increases in administrative prices, but underlying inflation remains low. The external current account deficit in 2001 amounted to 6.5 percent, as an improvement in the income balance was offset by a widening trade deficit, but was largely covered by foreign direct investment.

 

In this context, gross international reserves, at 3,600 million US dollars, continued to cover 5 months of prospective imports of goods and nonfactor services. So far in 2002, the external current account deficit remains on pace for a similar outcome as in 2001. While the income balance is due to improve owing to lower external interest payments, the trade balance is expected to widen mainly due to lower exports.

 

Lackluster foreign direct investment in the first quarter of 2002 partly reflected the timing of privatization and the import cover of gross international reserves is expected to remain at close to 5 months. Bulgaria's competitiveness remains adequate, as its market share in the EU has continued to expand and the appreciation of the real effective exchange rate in 2001 and early 2002 was in line with productivity gains relative to Bulgaria's main trading partners.

 

Bulgaria continues to face challenges to sustain high-quality growth.

 

High unemployment and poverty levels have to be reduced to increase living standards and preparations for EU accession still have a long way to go. Also, the country remains vulnerable to exogenous shocks. To overcome these challenges, Bulgaria would need to keep its discipline in implementing macroeconomic policies and accelerate the implementation of crucial structural reforms to increase the efficiency of the economy.

 

Executive Directors agreed with the thrust of the staff appraisal.

 

They acknowledged the impressive progress made by Bulgaria since the adoption in 1997 of a policy framework centered on a currency board arrangement, prudent fiscal and incomes policies, and comprehensive structural reforms.

 

Nevertheless, the country continues to face challenges. Although growth has been robust, unemployment remains high, and poverty is above the levels of before the 1996-97 crisis, the IMF executive directors said in their assessment.

 

 

 

Bulgaria Consistent in Backing UN, EU, US, Russian Iniatitive to Reach Durable Settlement of Middle East Crisis.

 

New York, August 6 (BTA) - Eleven countries, including Australia, Canada, Bulgaria and Romania, abstained when the 10th Extraordinary Session of the UN General Assembly Monday night adopted a resolution calling for an immediate cessation of hostilities and acts of violence in the Middle East.

 

Bulgaria joined the statement made by the Permanent Representative of Denmark on behalf of the EU. "We support the efforts of the UN Secretary General to establish the facts and highly appreciate the report he has prepared," the Information and Public Relations Directorate of the Bulgarian Foreign Ministry said in a press release. "We condemn all acts of violence leading to loss of life and devastation, and we call on both sides to return urgently to the negotiating table," the press release says.

 

Bulgaria is consistent in backing the initiative of the UN, the EU, the US and Russia for achievement of a durable settlement of the Middle East crisis. "We believe that the concerted efforts of the UN, the EU, the US and Russia are decisive for a progress of the Middle East initiatives, and that their consensus is a basis for further actions of the international community. Therefore, support from the four principal sides is a necessary condition for a success of a resolution," the Bulgarian Foreign Ministry said.

 

The UN resolution was adopted by a majority of 114, and 57 states did not support it, including four that voted against (among them the US and Israel).

 

Albania, Kazakhstan, Turkmenistan and other countrues, 42 altogether, stood out of the vote.