Viva Ventures filed an appeal with Bulgaria's
Supreme Administrative Court, requesting a ruling on whether its contract to
take over the state telecom company BTC was approved by tacit agreement. The
privatisation agency has pledged to re-send for approval documents sought by its
supervisory board, hoping to seal the deal with Viva Ventures in the short term.
Bulgaria's Main Trade Partner
for H1 2003 Bulgaria's exports to the countries in Central and Eastern Europe
towered to USD 418.2 M, which make them main trade partners, data of the
National Statistics Institute shows.
Exports to these countries mark a considerable increase - they totalled
USD 293 M for the same period the previous year.
Imports also followed an upward trend, marking an increase of USD 270 M
and reaching USD 414 M.
Bulgaria's trade gap reached USD 1,027 M or BGN 1,845 M for the first half
of this year. Overall exports for this period of time were worth USD 3,508 M,
while imports totalled BGN 8,855 M.
All rights reserved, 2001-2002 (c) Novinite Ltd.
Emirates Airlines Eye
Bulgaria's Flag Carrier 2003-09-23
Dubai's Emirates Airlines is interested in the privatisation of Bulgaria's
recently set-up flag carrier Bulgaria Air, it emerged at the meeting of Deputy
Prime Minister and Transport Minister Nikolay Vassilev and Maurice Flanagan,
Vice Chairman and Group President of the company.
Emirates Airlines boast over 200 international awards and enjoy the image
of one of the fastest growing airline company. It flies to 67 destinations in
Europe, the Middle and Far East, Africa, Asia and Australia.
100 percent of Bulgaria Air, which replaced bankrupt one-time national
carrier Balkan Airlines, will be offered to strategic investors. Some 51 percent
of them will be offered to Bulgarian companies while the other 25 percent of the
shares will be floated on Bulgaria's stock exchange.
Possibilities for the participation of Dubai companies in extending
concessions for Bulgarian airports were discussed at a meeting with air travel
services company Dnata. Dnata recommended that Bulgaria open its air space for
the benefit of the whole sector.
There is no delay in Bulgaria's execution of its commitments under the
World Bank program for the release of the second structural adjustment loan PAL
2, Deputy Prime Minister and Economy Minister Lidia Shuleva said after a late
Monday meeting with one of the World Bank Managing Directors Shengman Zhang.
The new World Bank Country Director for Bulgaria Anand Seth reiterated
last week the position of his predecessor Andrew Vorkink that one of the
conditions for the floating of PAL2 is privatization of Bulgartabac.
Minister Shuleva expressed the hope that the new strategy for the sale of
the tobacco holding will meet the requirements of the bank. The new strategy is
expected to be submitted for approval by the government in early October.
All rights reserved, 2001-2002 (c) Novinite Ltd.
Bulgaria Invited New
Tender for Varna Shipyard 2003-09-23
Bulgaria invited a new tender for a 75-stake in the Varna shipyard in the
country's biggest coastal city, local Darik radio said Tuesday.
Bidders will have to draw out a detailed business plan for the shipyard's
development before they enter the contest.
The previous one attracted four bidders but was cancelled after
first-ranked Baker Investment Corp. pulled out.
Earlier in September more than a hundred workers at the shipyard staged a
rally, demanding higher wages and better working conditions. Some of the
protesters insisted they had not been given employment contracts.
All rights reserved, 2001-2002 (c) Novinite Ltd.
Privatisation of tobacco Parliament has approved the sale of 80% of Bulgartabac Holding AD, the state
company with a monopoly in the tobacco industry.
FITCH UPGRADES
BULGARIA TO 'BB'; OUTLOOK POSITIVE Fitch Ratings-London-29 October 2002: Fitch Ratings, the international
rating agency, has today upgraded the Republic of Bulgaria's Long-term foreign
currency rating to 'BB' from 'BB-' (BB minus). At the same time, the Long-term
local currency rating has been upgraded to 'BB+' from 'BB'. The Short-term
rating is affirmed at 'B'. The Outlook on the Long-term ratings was changed to
Positive from Stable.
The agency said that the Bulgarian economy is performing well in a difficult
global environment, public and external debt ratios are dropping sharply and
liquidity is strong, as it reaps the benefits of several years of fiscal
discipline and structural reforms. The recent endorsement by the EU of
Bulgaria's target date of 2007 for EU accession should bolster political and
economic confidence.
Fitch said that prudent fiscal policy has been central to this impressive credit
story. The government is on track to hit its budget deficit target of 0.8% of
GDP this year, and plans a slight tightening to 0.7% of GDP in 2003. Moreover,
it has an exceptional liquidity position, with around USD1.8 billion in its
Fiscal Reserve Account - equivalent to 11.7% of projected 2002 GDP or around 1.7
times total 2003 public debt service. Bulgaria's relatively high public debt to
GDP ratio has been a key constraint on its credit rating and remains above the
median of 49% for 'BB' rated sovereigns. However, it is on a rapidly declining
trend, falling from 79% at end-1999 to an expected 57% at end-2002 (60%
including guarantees). "Favourable debt dynamics associated with tight fiscal
policy, privatisation receipts, real GDP growth and real exchange rate
appreciation are likely to continue to lower the debt/GDP ratio and strengthen
creditworthiness over the medium term", said Edward Parker, Director of
Sovereigns at Fitch.
Bulgaria's external indebtedness is also declining, the agency said. It expects
net external debt to fall from 89% of current account receipts at end-1999 to
48% at end-2002 - below the 'BB' median of 63%. Meanwhile the Brady bond
exchanges have improved the currency, interest rate and maturity profile of the
debt. Although Bulgaria has quite high gross financing requirements, a large
share of that is covered by FDI and IFI disbursements. Furthermore, its strong
external liquidity position means that it is relatively well placed to cope with
the risk of contagion to emerging markets.
Fitch commented that Bulgaria remains competitive under the constraints of its
currency board arrangement. Despite a series of adverse shocks, GDP per capita
growth has averaged 5% over the past five years, while current account deficits
have been financed by FDI, FX reserves have grown and external debt ratios have
declined. This year, Fitch expects GDP growth to pick up to 4.2% and the
current account deficit to narrow to 5% of GDP - a good performance, given the
depressed EU market.
However, the agency noted that it will be important for Bulgaria to continue to
press forward with structural reforms to generate a more flexible economy and
sustain growth rates that enable it to catch up with more advanced European
countries. The completion of big-ticket privatisations, energy reform and the
introduction of a more flexible labour market code will be important measures.
And Fitch warned that good economic policies have yet to pay off politically.
The drop in the government's popularity since the 2001 election could exacerbate
tensions amongst its disparate interest groups and personalities. Fitch expects
Prime Minister Simeon Saxe-Coburg-Gotha to continue to back the reformers on key
areas of economic policy. But a change of course cannot be ruled out if these
policies do not soon translate into higher living standards, lower unemployment
and a recovery in the government's popularity.
Bulgaria Sells Tobacco Monopoly
By VESELIN TOSHKO,.The Associated Press
SOFIA, Bulgaria (AP) - Bulgaria agreed to sell its state owned-tobacco monopoly
Friday in a $109 million deal considered to be a major test for the Balkan
country's reformist government and its efforts to attract foreign investment.
The state-owned Bulgartabac Holding is being sold to Sofia-based Tobacco Capital
Partners and Dutch-registered Clar Innis, which offered 110 million euros in
cash for 80 percent of its assets.
The consortium also pledged to invest about 71 million euros ($70 million) in
production over the next five years.
The other contenders included Russia's Metatabak; Austria's Tobacco Holding
Gmbh; and a second Russian consortium, Rosbulgartabak.
The deal is critical for Bulgaria, which is struggling to meet tough budget
guidelines mandated by the European Union. Bulgaria hopes to join the trade bloc
in 2006. The Balkan nation has been anxious to shake off its communist legacy
and open its markets to foreign investors, but has struggled over how to best
introduce reforms.
The winner offered the best overall package, including price, investment
pledges, and employment strategy, said Apostol Apostolov, the chief of the
privatization agency. The deal is expected to be completed in 45 days.
Bulgartabac's businesses include 12 processing factories and nine cigarette
factories. It also has five cigarette-making factories in Russia and one each in
Ukraine, Romania and Yugoslavia.
Bulgaria produces some 44,000 tons of tobacco a year.
08/23/02 11:02 EDT
