PM's wife Margarita was escorted by four generals yesterday during the ceremonial hoist of colours with the Sofia coat of arms in front of the 'Alexander Nevsky' Cathedral on the occasion of the Day of Sofia. Simeon's wife was accompanied by Chief Secretary of Interior General Boyko Borissov, Director of the National Police Service Gen. Vassil Vassilev, head of the Sofia Directorate of Interior General Rumen Stoyanov and General Emil Tanev, head of the 'Aegis' Security Agency. The PM congratulated me as early as Monday and apologized that he won't be able to attend the celebrations, mayor Stefan Sofianski said.
EARTHQUAKE.
BTA
Earthquake Registered in Bulgaria at 12.09 hrs.
Sofia, September 18 (BTA) - An earthquake epicentred some 50 km south of Sofia on Bulgarian territory was registered at 12.09 hrs on Wednesday, according to the Seismological Centre with the Geophysics Institute of the Bulgarian Academy of Sciences.
This was reported by the duty officer at the Civil Defence Agency.
The quake measured about 3.4 on the Richter scale and was felt in the area of Sapareva Banya, according to preliminary data.
No loss of life or damage to property has been reported.
Foreign Minister Passy Sent Medicines to Detained Bulgarian Medics.
Standartnews
Foreign Minister Passy sent medicines to the detained Bulgarian medics in Libya via the first flight of Hemus Air airlines to Tripoli. Yesterday, Hemus Air performed its first flight to Libyan capital Tripoli with 30 regular passengers and a delegation of 26 journalists aboard the plane. It is the first Bulgarian company to fly to Libya following a break of over two years. Balkan Airlines national carrier discontinued its flights to that country in 1999.
Foreign Minister Solomon Passy opened officially the flight at Sofia Airport's VIP hall in the presence of Libyan charge d'affaires Ismail Shalgam, Hemus Air director Dimitar Pavlov and other guests. The foreign minister congratulated Pavlov and the company which he runs for, as his put it, his exceptional effort to overcome all red tape hurdles before the resumption of the Sofia-Tripoli flights. "We achieved a wonderful success in a year," said Passy. Ambassador Shalgam described the reopening of the line as a concrete step in the development of bilateral relations and thanked the Bulgarian side for its effort.
According to the air company's chief Pavlov, the flight is the first step towards the revitalization of bilateral economic relations. It became a fact thanks to the efforts of the ministries of foreign affairs and of transport, Pavlov stressed. The Hemus Air planes will depart from Sofia Tuesdays at 8 p.m., to arrive in Tripoli at 9.30 p.m. local time; the return flight leave from Libya Wednesdays at 6.20 am. local time, to arrive in Sofia at 10.00 a.m. The company has been granted all the necessary permits from Libya's Civil Aviation authorities.
Kalina's Wedding Date Symbolizes Power.
Standartnews
The wedding date of Princess Kalina symbolizes power and force. In combination with the month and the year, 26 can be reduced to 13. In the domain of symbols this figure means power and force. So says the wedding horoscope of Kalina and Kitin Munos, that "Standart" commissioned to astrologer Maria Maistorova. According to her, the date of the wedding is concerted with astrologers.
Vice-PM N. Vassilev Was Panic-Stricken, NMS Threw a Party.
Standartnews
Managers of Bulgartabac are drafting in secret a missing record, antedated August.
The Ministry of Economy was panic-stricken minutes after the Supreme Administrative Court (SAC) released that it was suspending the deal on Bulgartabac. Vice-PM Nikolay Vassilev got dumbfounded. He was not able to utter a word for five long minutes, eyewitness from the Ministry said. Then he retired into his office. In the meanwhile, NMS and UDF MPs were throwing a party at the bar of the Radisson Hotel. They were celebrating the fact that "Vassilev was at long last to get what he deserved for his shady deals." The Cabinet was horrified as well. Some of the ministers gathered immediately and decided to keep strict silence on the matter. "We are not officially informed about the ruling of the court," sources from the Privatization Agency said. The managers of Bulgartabac were also panic-stricken. An urgent sitting was convened to write a record of a sitting, held on August 5, "Standart" learned. Obviously, it was because the SAC required all the records on the case. The Tobacco Capital Partners were uneasy as well. Ultimately, they said they were also to keep silence. The first hearing on the violations of the privatization deal on Bulgartabac is scheduled to be conducted by the SAC on October 3.
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Was The Deal on Bulgartabac Fair?
Yes 11 percent
No 56 percent
Hesitant 33 percent
Is The Deal Profitable to Bulgaria?
Yes 10 percent
No 54 percent
Hesitant 36 percent
Nationwide study conducted by MBMD polling agency
BULGARTABAC.
BTA
PM Saxe-Coburg-Gotha and Deputy PM Vassilev Discuss the Situation Around Bulgartabac Following Suspension of Privatization Deal.
Sofia, September 18 (BTA) - Prime Minister Simeon Saxe-Coburg-Gotha met Wednesday Deputy Prime Minister and Economy Minister Nikolay Vassilev. Emerging from the meeting, Vassilev said the two discussed the situation around Bulgartabac.
On Tuesday the Supreme Administrative Court suspended the Bulgartabac Holding deal until a lawsuit filed by bidders Metatabak, RosBulgartabak and Tobacco Holding is completed. On August 23, 2002 Privatization Agency CEO Apostol Apostolov announced that the Tobacco Capital Partners consortium is the winner of the two-tier tender and said that the consortium, supported by Deutsche Bank, and the Privatization Agency are starting negotiations on signing a shareholding agreement and a draft privatization deal.
The deal was expected to be finalized by the end of September. According to press reports, the determination of the Supreme Administrative Court will delay the deal by at least a month.
After meeting the Prime Minister, Vassilev said that the delay in the deal will not create problems in the payment of wages in the state-financed sector. He recalled that the Bulgartabac deal is expected to add 75 million leva in paid taxes to the national budget. An additional 110 million euro are expected to go to the fiscal reserve on which Bulgaria's credit rating depends, he said.
Earlier on Wednesday Deputy Prime Minister Vassilev declined to comment on the decision of the Supreme Administrative Court.
BULGARIAN PRESIDENT-VISIT TO RUSSIA.
BTA
President Purvanov's Visit to Russia Starts with Nonformal Meeting with President Putin in Sochi.
Sofia, September 18 (Ekaterina Kazasova of BTA) - Bulgarian President Georgi Purvanov's visit to Russia starts Thursday with a nonformal meeting with Russian President Vladimir Putin at the Bocharov Ruchey Residence in the Black Sea resort of Sochi. The two presidents will meet again later in Moscow for their official talks.
President Purvanov will pay a working visit to Russia from September 19 through 21, 2002 at the invitation of President Putin. This will be the first meeting of the two heads of state.
The official Bulgarian delegation includes Deputy Prime Minister and Regional Development and Public Works Minister Kostadin Paskalev, deputy ministers of foreign affairs, economy, energy and culture, MPs of all parliamentary groups, representatives of culture, education and science and of the National Association of Municipalities, businessmen and journalists.
The presidents of Bulgaria and Russia will exchange opinions on a broad range of issues of bilateral relations and international and regional problems of mutual interest. In the course of their official talks the two presidents will discuss the state of Bulgarian-Russian relations and possibilities for their activation.
The two presidents are also expected to dwell on important bilateral problems in the context of Bulgaria's presidency of the UN Security Council, including the situation in the Middle East, Afghanistan, the fight against terrorism and security issues, the President's Foreign Political Issues Advisor, Georgi Dimitrov, said.
The visit will devote special attention to bilateral trade and economic relations.
According to Dimitrov, there are numerous untapped possibilities for broadening bilateral economic relations, including encouraging Russian investment in Bulgaria, tourism, regional cooperation, etc.
The visit is expected to map out concrete initiatives to mark the 125th anniversary of the of the Russo-Turkish war under the aegis of the two presidents. The date of a future visit by President Putin to Bulgaria may also be set.
President Purvanov is scheduled to meet the chairmen of the two chambers of the Russian Parliament, Patriarch Aleksey II, Governors, representatives of Russian business and others.
The Bulgarian head of state will read a lecture on "Bulgaria in the Modern World" at the Moscow Mikhail Lomonosov State University.
An exhibition of Bulgarian books, to be donated to the Bulgarian Language and Literature Desk of Moscow University, will be held on the sidelines of the visit.
President Purvanov's visit to Russia is a culmination in bilateral relations following the visits to Moscow this year by Foreign Minister Solomon Passy, Deputy Prime Minister and Economy Minister and Prime Minister Simeon Saxe-Coburg-Gotha.
Its purpose is to establish a political climate conducive to the solution of outstanding problems, the presidential advisor said. These include the imbalance in bilateral trade and Bulgaria's deficit in its trade with Russia. Last year Bulgaria's exports to Russia totalled 130 million US dollars and its foreign trade deficit of 1,300 million US dollars was formed mainly by the import of fuel and energy sources, Presidential Advisor Nikola Karadimov recalled.
According to statistics, in the first six months of this year commercial exchange between Bulgaria and Russia totalled 676 million US dollars which is 80 million dollars less than in the like period of last year. Bulgaria's deficit amounted to 598 million US dollars which is 8.3 per cent down from the like period of 2001. Commercial exchange with Russia accounted for 11.5 per cent of Bulgaria's trade in the first six months of the year.
A considerable number of Bulgarian companies are expected to attend the Russian Bulgarian business forum in the Russian capital. In Moscow President Purvanov will be accompanied by 30 representatives of Bulgarian business, mainly of export-oriented companies or of companies with a firm foothold on the Russian market.
This is the third time representatives of Bulgarian business arrive in the Russian capital this year. This time, however, the forum will be somewhat unconventional, Karadimiv said. Following a plenary session, chaired on the Bulgarian side by Deputy Prime Minister Kostadin Paskalev, the forum will proceed in three roundtables - in infrastructure and construction, energy and trade in industrial goods and tourism. The decisions and ideas of the forum will be presented to the two presidents.
President Purvanov is expected to seek the support of the Russian President for his idea to make Bulgaria an energy centre of the Balkans. A total of 18,000 cubic meters of gas a year transit through Bulgaria now, its capacity being 30,000 million cubic meters, Karadimov said. Possibilities for Russian investment in the building of the Bourgas-Alexandroupolis and Bourgas Vlore pipelines will also be discussed. There is also an idea to build a gas pipeline to Vlore from where the gas will be transported by sea to Italy.
IMF-JERALD SCHIFF-ARRIVAL.
BTA
Jerald Schiff: Second Brady Bonds Exchange Fits in with Government's Debt Strategy.
Sofia, September 18 (BTA) - IMF Mission Leader for Bulgaria Jerald Schiff said the second bonds exchange "fits in" with the government's debt strategy, of which the IMF has been supportive in general.
Schiff made this statement on his arrival for a discussion of the fiscal policy for the rest of 2002 and the budget for next year.
Asked whether the current mission would be difficult or easy, Schiff said:
"We'll get together and we'll discuss our views. I don't think we'll agree on everything but that's never the case."
Schiff called reform of the health care and education sectors "an important part of the government's programme".
Returning from the Salzburg European Economic Forum on Tuesday, Finance Minister Milen Velchev said serious concessions would not be made at these negotiations with the IMF because the views of the government and the IMF did not differ widely.
"We will insist on keeping the social orientation of the budget for 2002 and will not budge from our stance that enough resources must be budgeted for social policies in 2003," Velchev said.
BRADY BONDS-SWAPS-JP MORGAN.
BTA
Parliament Ratifies Agreement on Swap of Bulgarian Foreign Debt Bonds.
Sofia, September 18 (BTA) - Parliament ratified by 124 votes for, 67 against and 31 abstentions a dealer manager agreement between Bulgaria and JP Morgan Securities Inc., JP Morgan Europe Limited, and Salomon Smith Barney Inc. following an almost four-hour debate on Wednesday.
The ratification was supported by the MPs of the Simeon II National Movement (SNM) and the mostly ethnic Turks' Movement for Rights and Freedoms. The deputies of the United Democratic Forces (UDF) voted against. Most of the MPs of the Coalition for Bulgaria abstained, 17 voted against and one MP supported the ratification.
The ratified agreement will allow to exchange Bulgarian foreign debt bonds (Brady bonds) for new US-dollar denominated eurobonds, says the Parliamentary Budgetary Committee in its report. The exchange mechanism, used in April 2002, will be applied as an additional amount of securities of already existing issues will be released for this purpose.
According to the motives behind the motion for ratification, the positive aspects of the swap involve nominal reduction of the debt to the amount of 87 million US dollars and net reduction by 238 million US dollars given that the 151 million US dollars' worth security will be used for reduction of the debt.
Other advantages include achievement of improved debt indicators, net savings from the debt servicing totalling 346 million US dollars in the next 10 years and release of the blocked 151 million US dollar security.
The deal is very good for Bulgaria; it fits perfectly in the debt management strategy and will bring about a number of positive results, Finance Minister Milen Velchev said in Parliament's lobbies following the ratification. Apart from financial there will be other types of benefits for Bulgaria as well: extension of the debt term and reduction of the risk, related to the fluctuation of the interest rates on the world markets, he added. Velchev stated that he does not expect negative effects of the deal. The deal is expected to be implemented within the shortest possible terms and a promotional campaign is about to be carried out among foreign investors next week, the Finance Minister also said.
"Consultations with the President's experts have been carried out and we do not expect problems with the signing of the decree [on the ratification]," Velchev stated. The time frames within which the Head of State will decree the ratification depends on him and his schedule but it is not of particular importance whether the agreement will be promulgated on Friday or next week, added he.
At the debates UDF made objections to the ratification. According to ex-finance minister Mouravei Radev, following the second deal on the exchange of Brady bonds Bulgaria's losses will total some 2,500 million US dollars.
Radev said that it is real madness to accept a fixed interest rate of 8.25 per cent given that so far Bulgaria has been paying a floating interest of some 2 per cent. It is almost impossible that the average interest reaches 8 per cent, he added. He urged the national representatives not to support the agreement. "I wish to the young authors of this product to abandon the frame of mind of a broker and start thinking like Bulgarian statesmen," Radev also said.
UDF's MP Assen Agov said that with the ratification the Government transfers the responsibility to the National Assembly.
Parliamentary Budgetary Committee Chairman Ivan Iskrov (MP of SNM) said that UDF misses a chance to capitalize on the successful performance of the incumbent cabinet. UDF fell into the trap of two or three people, said he. "We are using real figures that are calculated in real time and on real markets; the figures are set on the London markets," Iskrov also stated. UDF should specify the figure of losses because at one point they assess them at 200 million US dollars and at the other at 2,000 million US dollars. Iskrov said that while UDF was in office there was an absolute lack of transparency regarding the foreign debt handling. The improving of the debt structure is aimed at more advantageous interests, extension of the payment terms to the time when Bulgaria will be already EU member and upgrading of the country's credit rating, he added.
MPs of Coalition for Bulgaria said that no great fuss should be made about such operations. The benefits that could be derived have already been consumed and the deal is already pointless, said Roumen Ovcharov, Deputy Chairman of the Bulgarian Socialist Party (a member of the Coalition). The current debate is not to be carried out in the plenary hall and the National Assembly should discuss a foreign debt servicing strategy rather than enter a discussion that is not within the competence of many of the MPs, he added.
He proposed that the Parliament adopts such a strategy and leaves the government implement its deals without any bargaining, he said, adding that certain limits should be imposed on the government. There is hardly anyone who is against the nominal reduction of the foreign debt and its effective
handling, Ovcharov stated.
The Finance Minister said that the transparency of such deals is really a problem but without constitutional changes a comprehensive debate cannot be avoided. Such debate is good for briefing the public but it is not useful for the purposes of the deal, he stated. Statements about total losses of 2,500 million US dollars given that the whole deal is of 800 million US dollars' worth need not be commented, Velchev also said.
He also said that he cannot guarantee that everyone, familiar with the deal - exceeding thirty people in number - have used the information to make fair deals. "I can guarantee only for my team and myself that we have not done this," he added. There are grounds to discuss the problem with the current deficit within the context of the foreign debt handling but the government has taken serious measures to this end and the result of them is a matter of time, Velchev also said. The measures involve attraction of bigger foreign investments among other things and this will happen before the year's end, he added.
Velchev said that the appreciation of the Brady bonds is due to the better prospects on the markets, the upgrading of the credit rating and the expectations that the EU will assess Bulgaria as a country with functioning market economy.
VELCHEV-SCHIFF.
BTA
Finance Minister Velchev, IMF Mission Leader Schiff Discuss Utilization of 2002 Budget, 2003 Draft Budget.
Sofia, September 18 (BTA) - The utilization of the 2002 budget and the 2003 draft budget, which will be moved to Cabinet for approval after October 3, topped the agenda of the talks during the first meeting between Finance Minister Milen Velchev and IMF Mission Leader for Bulgaria Jerald Schiff Wednesday.
The 2003 draft budget envisages 4.5 per cent inflation, 4.5 per cent economic growth, 5 to 5.5 per cent drop in the current account deficit and 0.7 per cent budget deficit.
Velchev and Schiff discussed the risks related to the utilization of this year's budget and the future fiscal policy. Health care, the subsidies for the real economy sector and agriculture were also in the highlights of the talks.
According to Schiff, the budget is the most unequivocal expression of the policy pursued by any government. He described the utilization the 2002 budget as excellent, adding that are some very clear indications that the economy is doing very well. Schiff commented that there is pressure in every country for more expenditures in the budget than it can afford.
The IMF mission leader for Bulgaria said he has absolutely no doubts whatsoever that the 2002 budget will be utilized as expected. Asked about the risks, Schiff emphasized that the structural reforms should continue. The privatization process is very important but the IMF does not think it will have a strong effect on the budget in short-term perspective, said he, adding that the government has no problems with the funds for the budget deficit. The IMF expects the privatization to be completed successfully Schiff concluded.
Triumph of Koldamova's Students in Italy.
Standartnews
Students from the State School of Choreography were awarded all possible prizes at the music and dance festival in Italy. Some 1,500 participants were invited this year. The 22 Bulgarian girls and 1 boy made such good impression that 'Rai Uno' TV offered to make a program about them. Children from the class of Krassimira Koldamova were awarded the first prize - 'Silver Dolphin'. Another two of the Koldamova's students - Desislava Stoeva from 8th grade and Nikola Hadzhitanev from 9th grade were also awarded. Martha Petrova won the prize for one-girl show and the award of the audience. The talented ballet dancer is a student in 11th grade and is the favorite of the school. She is a daughter of singer Petko Petkov who once was the frontman of the 'Tram Number 5' group.
