Simeon to Summon Ministers Because of Bulgartabac.
Standartnews
PM Simeon Saxe-Coburg-Gotha urgently called in Justice Minister Anton Stankov and Vice-Premier Nikolay Vassilev yesterday to ask them about Bulgartabac's deal. Firstly, he had tete-a-tete talks with Stankov for over a couple of hours. Then, in private again, Simeon discussed the suspension of the deal with the Vice-Premier. His tete-a-tete with Vassilev lasted for more than an hour and a half. Yet, the Vice-Premier admitted, they had discussed the situation with Bulgartabac. Immediately after meeting with the Premier, he said that the deal's postponement won't cause problems for the budget salaries' payment. He reminded, that direct revenues to the fisc amounting to 75 million levs are envisaged from taxes levied upon the deal. Other 110 million euro are expected to enter the fiscal reserve. 'BG credit rating increase may well depend on that,' the Vice-Premier stressed.
Court Racketeered because of Bulgartabak.
Standartnews
For several months now the "Standart", as a newspaper that has always lent a hand to the government, has been criticizing the cabinet in a friendly way for the privatization of Bulgartabak. The cabinet, however, turned a deaf ear to its well-meaning supporters. What has happened next? The court put the deal on hold. To us this decision didn't come as a surprise. Because any court would have suspended such a deal. If not this, then the one in Strasbourg. Actually, the moves of Nikolay Vassilev have compromised Deutsche Bank and created the impression that the respectable and influential bank is implicated in a shady deal. Why is the deal shady?
The reasons presented by the Supreme Administrative Court are explicit and clear: the court suspends the deal because its repercussions would be detrimental and irreparable. Only "Standart" has always maintained that Deutsche Bank is a serious financial institution that doesn't partake in shady affairs. The most worrisome in the whole tobacco saga is the fact that someone again is trying to put at stake lives of millions of people for whom tobacco is the only livelihood. This somebody intentionally creates problems with the buy-out campaign under the pretext that Bulgartabak is insolvent.
Isn't it strange that Bulgartabak turned out to be out of money? Hasn't Nikolay Vassilev himself previously explained that the holding's performance this year is much better than in the last one, when tobacco buy-out went on without a hitch. The whole affair shows one thing only. In Bulgaria every government gets involved in business instead of being engaged in politics. They use MP's immunity and numerous other privileges that make them unapproachable for the law. Immediately after the deal was suspended, an MP by the name Ivan Iskrov had the cheek to threaten the entire judicial system hinting that it can happen that money for the judges may be frozen. Only when the case is heard in Strasbourg what scarecrows would he put out to threaten the judges there? What can he take away from them? All this looks like open racket. But, as people say, fish begins to stink from the head.
BULGARIA-CZECH REPUBLIC.
BTA
Chief of Czech Army's General Staff Sedivy Proposes Czech Method for Bulgarian Missiles' Destruction.
Sofia, September 19 (BTA) - Speaking before a news conference after meeting his counterpart General Nikola Kolev, the Czech army's general staff chief General Jiri Sedivy said he had proposed that Bulgaria apply a special Czech method in the destruction of the solid fuel engines of the SS-23 missiles.
"We cannot accept the proposal because of the short deadlines which we have to meet," Gen. Kolev told reporters.
Speaking before BTA, he said that two options for the destruction of the missiles' solid fuel are being considered: to break it into pieces and mix it with other components and use it to fire anti-hailstorm missiles; or to incinerate it in a special installation after first breaking it into pieces.
"We are researching the possibilities to do so at the incineration of highly toxic refuse facility in the town of Rakovski, which is under construction," said Gen. Kolev. "If we decide on this method, what remains after the incineration may be cleaned up and utilized," he explained.
Gen. Sedivy arrived Thursday on a one-day official visit to Bulgaria at Gen. Kolev's invitation.
The two generals talked about the reforms in their countries' armed forces.
Sedivy said the Czech government has decided to shorten the deadlines for the transformation of the army into a fully professional one from 2010 to 2006.
After the Czech Republic joins NATO some army production facilities will be closed down because of the lower price of armament offered by NATO countries, said Sedivy.
Bulgaria will find the NATO membership burden more bearable because it will not repeat the mistakes of the Czech Republic, Poland and Hungary, said Gen. Kolev. The implementation of the Plan for the modernization and armament of the Bulgarian army will be launched in 2004 - 2005, said he, noting that the modernization of the army's armament is already underway. He pointed as an example to the upgrading of the MiG-29 planes and the army's communication field systems.
Meeting with Defence Minister Nikolai Svinarov, General Sedivy voiced his country's conviction that at the Prague Summit NATO will invite seven new members and that the Bulgarian army will become an equal ally, the Defence Ministry press centre reported.
Svinarov informed Sedivy about the Bulgarian army's preparation for NATO membership. For his part, General Sedivy shared the experience which his country accumulated in the three years of full NATO membership.
The sides noted that the Bulgarian and Czech armies are faced with similar tasks related to personnel cuts and the gradual transition to a fully professional army, which the two countries expect to be completed by the end of 2006.
The main problem before Bulgaria and the Cezch Republic is to find ways to deal with the superfluous armament and combat equipment.
The Sedivy-led delegation visited the village of Gulubnik near Pernik (Western Bulgaria), where it laid wreaths and flowers in memory of Czech and Slovak parachuters who died 30 years ago in a railway accident.
General Borissov Asks FBI for Helicopters.
Standartnews
Antoaneta Peteva
Yesterday Chief Secretary of the IM Boyko Borissov said that the FBI should help Bulgarian police granting us helicopters, cutters and computers. He handed in to FBI Coordinator for the Balkans, Richard Clifford a list with 14 kinds of hi-tech equipment. This happened during the official lunch in the 'Hilton' hotel attended by the members of the US Chamber of Commerce . Gen. Borissov said that Bulgarian big business also has to help buy the necessary equipment for the IM. 'We'll try to provide all the equipment we can mentioned in the list of Gen. Borissov. The cooperation between the USA and Bulgaria is of great importance to us', Robert Clifford said. Before the official lunch at 'Hilton' General Borissov met President Georgy Parvanov. Chief Secretary of the IM informed the head of state of the measures taken to curb crime and their results.
BALKAN AIRLINES - COMMENTS.
BTA
Finance Minister Recommends Establishment of New Airline to Replace Balkan Airlines.
Sofia, September 19 (BTA) - "The best way to protect the interests of the State and taxpayers is to establish a new airline which will replace Balkan Airlines," Finance Minister Milen Velchev told the press Thursday. "Balkan's creditors may thus be satisfied to a larger extent than if the current situation is preserved."
"The State should not be financially committed to the future company any more than by virtue of the receivables which it currently expects to collect from Balkan," he said.
It is up to the Transport Ministry to decide on possible suspension of Balkan Airlines flights, he said.
Earlier in the day Transport Minister Plamen Petrov confirmed that Sofia Airport had sent Balkan a second notice urging them to repay their debt. "Any creditor could be expected to make such a request," Petrov said.
According to press reports Thursday, Sofia Airport is planning to force Balkan Airlines to suspend operation on October 19 due to a 1,467,000 leva debt.
President Parvanov Brings President Putin a Gift Kept in Secret.
Standartnews
A very special message-like gift is to be presented to President Putin by his counterpart Georgi Parvanov. To make the surprise complete the Presidency keeps the gift in utmost secrecy. Today the two Presidents will meet and have talks in Sochi. President Putin insisted on a shirt-sleeve meeting and hoped for dialogue as sincere as possible. An impressive group of businessmen and intellectuals accompany president Parvanov.
PURVANOV-RUSSIA-DEPARTURE.
BTA
President Purvanov: Visit to Russia Is Symbolic, But the Time of Symbols Is Over, Now Is the Time for Concrete Work.
Sofia, September 19 (BTA) - The visit to Russia is symbolic but the time of symbols has passed, now is the time for concrete work, President Georgi Purvanov said, summing up the purpose of his three-day working visit to Russia at the invitation of Russian President Vladimir Putin which starts on Thursday.
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.
"Concrete proposals will be made to the Russian side and they too will probably make their claims," President Purvanov said, adding that solutions will be sought in dialogue.
Russia's claims on part of the assets of Bulgartabac may be raised at certain levels, President Purvanov said in response to a question. However, he said he does not expect questions related to the deal as it is a sovereign right of the Bulgarian state.
The Iraq issue will be commented within the context of the work of the UN Security Council, the President said, taking another question. "This is a major challenge for the UN and I believe Bulgaria will be up to its duties," Purvanov said. Bulgaria holds the rotating presidency of the UN Security Council in September.
Bulgarian President Georgi Purvanov's visit to Russia will start with a non-formal 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 is scheduled to meet the chairmen of the two chambers of the Russian Parliament, Patriarch Aleksey II, Governors and representatives of Russian business. He will read a lecture on "Bulgaria in the Modern World" at the Moscow Mikhail Lomonosov State University. A Russian-Bulgarian business forum will be opened during the visit.
RUSSIA-PRESIDENTS-MEETING.
BTA
Russian President Putin: Russian-Bulgarian Relations Improved Since Purvanov Became President.
Sochi, September 19 (BTA special correspondent Ekaterina Kazassova) - Relations between Bulgaria and Russia have changed for the better since President Purvanov took office, Russian President Vladimir Putin said on Thursday, welcoming his Bulgarian guest at the Sochi Residence. This, according to Putin, is evidenced not only by increased trade, but also by the improved atmosphere in state relations.
Putin said the quality of cooperation in the economy, culture, education and science should change, which would be a subject for discussion with his Bulgarian counterpart.
Purvanov recalled that Bulgarian-Russian meetings had been held at all levels this year. "We have the ambition to put an end to swing-of-the-pendulum relations and stabilize them," Purvanov said. He emphasized that there is a political will to build relations based, on the one hand, on tradition, and on the other hand, on the changed realities.
Proof of this can be found in the composition of the Bulgarian delegation, which includes more than 100 representatives of the political, cultural and business elite for the first time in many years.
Before their conversation, the two presidents strolled in the park of the residence and along the promenade.
This is the first unofficial meeting of the two state leaders during Purvanov's three-day working visit to Russia. The two presidents and their wives will have dinner later on.
Afterwards Purvanov will leave for Moscow, where the official talks will continue on Saturday.
Bulgarian President arrives in Moscow on visit.
ITAR-TASS
Bulgarian President Georgi Purvanov has arrived in Moscow for a three-day official visit at the invitation of President Vladimir Putin.
He will go from Moscow to Sochi, where he will hold talks with the Russian president. The two leaders are expected to discuss in detail a wide range of topical problems of bilateral relations and cooperation of the two countries in the international arena. When discussing cooperation prospects in the cultural and humanitarian sphere, the presidents may outline activities within the framework of celebrations on the occasion of the 125th anniversary of the end of the Russian-Turkish war and the liberation of Bulgaria from Turkish oppression.
"I am positive we shall hold a dialogue with the Russian leaders, and personally with President Vladimir Putin and with officials from the executive bodies, which will be in line with good historic traditions of our bilateral relations, and which will be geared towards the future," Purvanov said in Sofia on the eve of his departure for Russia.
In his opinion, "politicians should take upon themselves the boosting of the bilateral relations, and should give a chance in this way to economic and cultural relations".
Purvanov is being accompanied in his trip by Deputy Prime Minister, Minister of Regional Development and Public Works Kostadin Stoyanov Paskalev, Foreign Minister Solomon Isak Pasi, MPs from all the parliamentary factions, prominent cultural personalities, representatives of Bulgaria's regions and of the leading companies. A special programme of meetings and talks, including the signing of some documents, has been drawn up for them.
Putin says relations with Bulgaria improving under Parvanov.
AP
MOSCOW - Russian President Vladimir Putin met with Bulgarian President Georgi Parvanov on Thursday and said ties between the two countries have brightened considerably since Parvanov's election last year.
"This can be judged not only by trade turnover, which now amounts to dlrs 1 billion and has great potential for growth, but also by the atmosphere of interstate relations, which is improving noticeably," the Interfax news agency quoted Putin as saying at the beginning of the meeting in the Black Sea resort city of Sochi, where he has been on a working vacation for much of the month.
Parvanov said that the talks with Putin would help stabilize political relations between the countries and that the importance Bulgaria places on the talks was evident from the size of the delegation he led about 100 officials, lawmakers, business leaders and cultural figures. "Bulgarian delegations have not been so representative for a long time," Interfax quoted him as saying.
Bulgaria holds the revolving chair of the U.N. Security Council, which has been discussing the confrontation between the United States and Iraq. Russian officials said the talks between Putin and Parvanov would focus on urgent international issues including ways to counter global threats and strengthen European security, Interfax said.
They were also planning to discuss Balkan issues, including difficulties in the peace process in Bosnia, as well as trade and business cooperation.
After the talks, Putin's deputy chief of staff Sergei Prikhodko said the two held detailed discussions on cooperation in the energy sector, talking about exports of Russian oil and gas to Bulgaria, the processing of those exports in Bulgaria and their transportation further into southern Europe, Interfax said.
Parvanov and the Bulgarian delegation traveled later to Moscow, where they were to meet with Russian officials and business counterparts on Friday, the ITAR-Tass news agency said.
Parvanov, a Socialist credited with seeking to reform his previously communist party, beat the incumbent in an election last November and vowed to work toward membership in the European Union ( news - web sites) and NATO.
Bulgaria's presidency is a largely ceremonial position, with real power resting with the prime minister and parliament, but the office carries considerable moral authority and legislative veto power.
FINANCIAL INTELLIGENCE.
BTA
Financial Intelligence Agency to Monitor Cash Payments Exceeding 30,000 Leva.
Sofia, September 19 (BTA) - All financial operations and transactions involving cash payments exceeding 30,000 leva will be entered in a special register of the Financial Intelligence Agency (FIA). A provision to this effect is available in a bill to amend the Measures Against Money Laundering Act, approved by the Council of Ministers Thursday. The old provision requires that all dubious deals be reported, regardless of the size of the payments.
If the draft changes pass in Parliament, lawyers providing financial consultation, handling transactions, or assisting the establishment of offshore companies will be required to disclose the identity of their clients. On suspicion of dubious deals, lawyers should report to the FIA, Agency Director Vassil Kirov told a news conference. The requirement will also apply to tax consultants and intermediaries in real estate trading.
Cigarettes and alcohol traders will be exempt from the obligation to report such deals.
The opening of bank accounts will be done in person.
A deputy finance minister will be appointed as chief financial intelligence inspector.
The Agency will be renamed from "Bureau of Financial Intelligence Agency" into "Financial Intelligence Agency."
These changes will serve to approximate Bulgarian legislation to European standards, Kirov said.
EXTERNAL DEBT EXCHANGE-PRESIDENT-COMMENT.
BTA
Purvanov Shares View That External Debt Exchange Operations Are Necessary.
Sofia, September 19 (BTA) - President Georgi Purvanov shares the prevailing view among experts that operations such as the external debt exchange are necessary and improve the country's "debt image". A statement released by the President's Press Secretariat on Thursday says it is high time a strategy for effective management of the external debt was presented instead of priorities for a strategy, as was done in the presentation of the debt exchange operation.
Although the cabinet's inclination to dialogue on the second operation has increased since the debate in March, many questions raised at the time are still outstanding, the statement said.
Purvanov told journalists on Thursday morning before leaving for Moscow that he had signed a decree on the promulgation of the agreement on external debt exchange ratified by Parliament on Wednesday. The decree was signed, in spite of some serious reservations and recommendations for the future, Purvanov said. Such matters should not be tackled "piecemeal". It would be a good thing to have a clear strategy for external debt management and seek solutions within the framework of the law adopted by Parliament, Purvanov said.
Such a strategy should be adopted by the National Assembly every year along with the Budget Act. This would make things easier for the legislature and the executive, and would provide guarantees for better information of the public in Bulgaria, Purvanov said.
The real effect of the exchange of Brady bonds for global dollar-denominated bonds is debt rescheduling rather than a nominal reduction of the external debt, the Press Secretariat said. The fact that security for part of the Brady bonds is released can hardly have a money-saving effect, but it creates prerequisites for more active long-term external debt management, the President said.
The Press Secretariat said that the President and his team prepared his position in consultation with Finance Ministry representatives and well known financial experts, such as Stoyan Alexandrov, Krassimir Angarski, Lyubomir Filipov and Dimiter Kostov.
TOBACCO-PRODUCTION-BALKAN CONFERENCE.
BTA
Plovdiv (South Central Bulgaria), September 19 (BTA) - Oktai Ahmedov, Executive Director of the Tobacco Fund, opened in Plovdiv on Thursday the Second Balkan Conference on "Quality and Effectiveness of Tobacco Production, Curing and Processing".
Ahmedov told the participants that an area of 37,000 ha was under tobacco in Bulgaria this year and the projected output was 65,000 t of raw tobacco. The output of tobacco products is expected to exceed 35,000 t this year.
More than 65,000 Bulgarian families make a livelihood out of tobacco-growing, Ahmedov said. Tobacco processing and trade in tobacco and tobacco products are particularly important for Bulgaria in the environment of a functioning market economy.
The two-day conference has attracted tobacco experts from Bulgaria, Greece, Macedonia, Romania, Turkey and Yugoslavia. They will exchange information and experience on the state and prospects of developing the tobacco sector of the Balkan countries.
