Q: Could you give us a brief historical back ground of the changes that took place here in Bulgaria in the recent past?
A: Unlike any other people in Eastern Europe, we reached the very bottom. Actually we forced the former men in power from the communist regime to leave their place. We are the only East European nation who took the power by the former communists by force. Fortunately we had the opportunity to do that within the frames of the Constitution. Actually our Government could not be formed. We had a refusal to form a Government which was caused by a common national strike. To me this is the most specific thing about Bulgaria and the most interesting fact about our past reforms. We had communists who failed twice after their took power through legal elections. People here know best that the reform has not alternative at all. And in this way from a faithful satellite of the former Soviet Union, we turned out to be the ones with the strongest right-central government. The Government enjoys the support of 140 Members of Parliament of a total number of 240. Nowhere else in Eastern Europe the majority in favour of the reform is that clearly defined; we have a similar process in Hungary right now but no where in this region the process is stronger emphasis. I will turn back the beginning again, it happened after the catharsis: a lot of people judged for them selves that this is the right choice.
Q: After one year in power, your government did make a lot of successes. Would you briefly describe them and point three of them that you consider the most important?
A: Financial stabilisation is most important for me - the success in the financial and fiscal policy. Secondly the successful battle with the organised crime. And on the third place we managed to catch the last train going to EU and NATO . We were in an hopeless situation in the beginning of 1997. It was very fortunate for us that we were among those countries invited to apply for a membership to the EU. We are hoping to be included in the second wave in the broadening process of NATO . This is a clear sign to me that we are starting to catch up after the big delay we allowed. We are very happy that we have finally become members of the Central European Free Trade Association.
Q: Currently Bulgaria negotiated three year stand-by agreement with the IMF. What are the basic lines of that agreement?
A: I would mention a several things: first very strict criteria needs to be followed in order to turn the financial stabilisation in to a long term one; including a zero or a very low budged deficit, fixed currency rates, low inflation, low interest rates, slow and moderate of real incomes. And secondly after fulfilling the requirements of the three year programme, to fulfil the requirements of the Kopenhagen Agreement; which means stabilisation of market economy of the country, turning it into a competitive one so it could be integrated into the EU; and restoration of incomes, and, of course, the finalising the structure reform – the closing down of the loss making enterprises; finalising the privatisation process.
Q: Competing crime and corruption is also a major priority in your programme. What has been done so far?
A: A conference was held yesterday in Sofia, with
the participation of our Minister of Internal Affairs.
I can suggest that I send you the report where you
can find all the achievements so far. We have around
40% decrease of crime incidents as compared to last
year. We have managed several of the illegal businesses
here in Bulgaria, including forceful insurance activities
and also the production and distribution of non-licensed
CDs. And we have also managed to deal with the organised
crime groups in our relationship and economic trade
with Russia. For you information this lead to 17%
decrease of the cost of gas which amounts about
to a 100 million $, for small Bulgaria this is a
lot of money. |
Q: Lately an increasing number of US companies are beginning to pay more attention to Bulgaria but they are still suspicious, they come step by step. What do you think could be done to improve US investments in Bulgaria?
A: It seems that Bulgaria is too far away from the USA and the business that would attract the attention of the large American companies are not that great in number. Interest was show for the National Electric Company which is huge for the proportions of Eastern Europe, Bulgartabac which ranks right after the large tobacco and cigarette producing companies in the same area, Bulgaria Telecommunication Company which has a very strategic location and the Neftochim Refinery in Burgas which is of very great significance in the Black Sea region ( you know how many problems rise in the transport of oil from Asia and the Kaspean region to Europe; this refinery in Burgas is a very good solution to them. Before it processed about 12 million tones of oil which is hard what it needs to be transported from the Kaspean region to Europe. It is also important to serve to maintain the balance between demand and supply in the Balkans). American investors do not show a lot of interest to work in small and medium sized enterprises. Rumours go that there is interest towards the military complex and the banks. Let us take for instance American International Group which is a very well known insurance company and it has failed in the privatisation of Post Bank. The rest of the participants in the auction were underestimated, the first offer was not good, they ranked third. Right now they are presenting a very good offer to us but we are in a process of negotiating with the first buyer. If they had approached us with this present offer, they would be probably already the owners of Post Bank, which is a very good one. May be we do not put enough emphasis on the strength of competition here in Bulgaria. Another example is the attempt of American investor to buy Chimco plant – a very large factory for the production of Carbonate. Although it ranked first in the preliminary negotiations the American Investor did not reached the final stage. It gave up. The experts claim that the negative status-quo on the market of Carbonate is the reason for that.
The prices of that substance has dropped dramatically, and the production of it is a loss making activity – may be?
Q: You take part in a lot of foreign business meetings. Do you feel a new changed attitude towards Bulgaria, American businessmen’s attitude in particular?
A: I think that although it is a slow process, trust in Bulgaria is increasing. The model of privatisation we are going to apply now, with participation of reputable international banks and intermediaries will give us a push inn that process. We delegated the privatisation process to those investments agencies and institutions, they look for buyers and offers. We expect that this would increase the trust once again in the country. We are also several key transactions to be finalised very soon that will show what the risk level in Bulgaria is. For example: the selling of Post Bank will be such a criteria, another one will be the deal with the BTC, and after that things will go gradually.
Q: As a more personal issue, we know that you are very busy man, but what do you do in your free time?
A: Yes, it is true that I do not have very much time for my self. But sometimes I would find a second to look at my very good collection of Bulgarian red wines. I have about 500 bottles.
Q: Keeping in mind that you are reaching 2.5 million readers what would be your final message to them?
A: Bulgarian economy has a lot of competitive advantages. They are: the extremely good geographical location, the natural variety and beauty of the country. Bulgaria is one of the most beautiful countries in Europe, quoting the opinion of almost everybody who visits it; with a lot of talented people who lack confidence still, organisation and financial resources and capitals. So we are all saying : you are welcome to Bulgaria to do business and rest here. |
BULGARIA, 
