 Future looks bright
Falling behind many of the others Central and Eastern Europe countries in its transition to a market economy Bulgaria has the unique chance to benefit from the past lessons.
Entering its second year in power the ruling party UDF faces no serious political threat from the opposition. Combined efforts for radical reforms of the President, government and Parliamentary majority backed by both domestic and external support, seem to have strong chances to carry out successful reforms. The main foreign policy target is clear and indisputable - Bulgaria's integration into NATO and the EU.
With macroeconomic stabilization being achieved and a currency board apparently under no pressure, the focus of the economic reform is concentrated on privatization, boosting both exports and economic growth.
According to the government plans, the process of privatization should be completed within the next two to three years. The capital market is still in the early stage of its development and is expected to boom through public offering of the shares of state-owned enterprises. The government plans to make its debut sovereign Eurobond issue of USD 200m. Municipal and corporate bond issues are expected to follow.
Budget for next three years is expected to be balanced, although a 2% deficit may occur due to the government’s plans to implement an ambitious investment program. This famous program that envisages investments up to USD 6bn in a three-year period would be the key driving force so as to meet its main target – a sustainable growth of more than 4%. Inflation and interest rates would stay at low levels with real wages and pensions to come to a gradual increase in real terms for the period. The second part of the taxation system reform is to be implemented afterwards, tax rates cutting being the leading point of this second phase.
A modern pension system, a health insurance and a proper judiciary system are to be introduced in the very near future. Once all the commercial banks meet the tough capital criteria set by the Bulgarian Central Bank and the privatization procedures for the state-owned banks start, no forthcoming dangers for the financial system will be anticipated.
And last but not least – it is not just the political and the economic systems that are changed. It is the people’s minds and beliefs that are different now. Just ten years ago Bulgarians used to rely on the state, for everything. Only two years ago people still saw no prospects for their country and for themselves. Now Bulgarians are well accustomed to rely on their own skills and resolution and are fairly optimistic about their future.
Nikolai Yanakiev , Chairman of the Board of Glavbolgarstroy , shares: "I am convinced that whoever invests in Bulgaria now, will only become a World Investment News Ltdr and this will be a big shot. Come back to this country in five years’ time to be convinced in my optimistic visions. By that time Bulgaria will be a blooming garden as is our famous Rose Valley".
 | "I remember during my talks at my visit to USA that I told as an honest lawyer if I was asked three years ago if it was good to invest in Bulgaria I would say : No, you would better wait and see and then you may invest . But now I would say to any one: Come, do invest in this country. It is a safe place to do so. There’s an unique favorable political situation in this country. Parliament, Government and President act in concert and follow the same course. The Government enjoys relatively good public support for undertaking such a severe reform promises-over 50%. In other words this is a stable country with a trustful political set up", President Stoyanov says.
Mr. Vassilev from Vassilevi bros. explains the benefits from a business point of view"
"In 1996, with 5 million dollars I had the task to invest them in a long term project, with a satisfactory profit at reasonable risk. After six months search in different countries in Eastern Europe, I bought a factory in Bulgaria. Bulgaria offered me the best correlation in the world between the price and the productivity of the labor force. If you want to create a production unit on a green field with a 10 million dollars a year turnover, you might need at least 50 million dollars, or the turnover for five years. In 1998 the turnover of my factory will be 20 million dollars, but its price was not 100 million. It was 5 million. So one dollar of turnover costs me an investment of
25 cents instead of 5 dollars.
Few nations are sharing so much by nature the traditional American values of freedom and life, of free entepreneurship and hard work. Such values were damaged, but not destroyed during fifty years of communism. « When 18 month ago I invested my first 5 million dollars, Bulgaria was less predictable and more cloudy. Now, the situation looks clearer. And the country’s government is selling tens of dozens of working factories with established markets and sales for 1 to 100 million dollars a year, which you can get for the equivalent of half to one year of their turnover. A hidden treasury, which makes this country the Klondike of the year 2000". Mr Vassilev from Vasilevi bros . says.
It was confirmed by president Stoyanov during his recent visit to USA:
«I remember during my talks at my visit to USA that I told as an honest lawyer if I was asked three years ago if it was good to invest in Bulgaria I would say : No, you would better wait and see and then you may invest . But now I would say to any one: Come, do invest in this country. It is a safe place to do so. There’s an unique favorable political situation in this country. Parliament, Government and President act in concert and follow the same course. The Government enjoys relatively good public support for undertaking such a severe reform promises-over 50%. In other words this is a stable country with a trustful political set up».
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BULGARIA, 
