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| 9 Mar 2012, Issue 3339 · USD: 1.47699 EUR: 1.95583 · Sofia: min 1°, max 4° Varna: min 1°, max 6° · |
| BUSINESS POLITICS WORLD SOCIETY SPORTS FORUM |
Schengen Hopefuls Bulgaria, Romania Hold Breath until Sept
 Brussels
will take its decision on Bulgaria and Romania's bids to enter the
Schengen agreement in September, it was confirmed on Thursday.
read |
US Cautiously Praises Bulgaria's Efforts to Combat Drug Trade
 The
US Department of State has extended cautious praise for the efforts of
the Bulgarian government, and specifically the Interior Ministry, to
combat the international drug trafficking.
read |
Germans Turn Their Backs on Greece, Bulgaria Benefiting
 Greek
tourism revenues could mark a 5% decrease in 2012 due to a fall in
pre-bookings from Germany, industry officials have said.
read |
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FITCH: TURKCELL FACES RATING PRESSURE OVER BULGARIA TELCO BID
Turkcell's binding offer to acquire a 94% stake in Bulgaria's Vivacom will pressure the company's rating, Fitch agency has warned. The rating agency statement came shortly after Turkcell's Board of Directors decided to submit an offer to acquire a 93.99% stake in the Bulgarian telecom operator, Bulgarian Telecommunications Company Vivacom. Turkcell Iletisim Hizmetleri, the biggest Turkish mobile-phone company, currently has a Long-term foreign currency and local currency Issuer Default Rating (IDR) of 'BBB-'. The outlook is stable. As the enterprise value for the Bulgarian telecom asset is expected to be in the range of USD 1 B – USD 1.4 B, if not higher, Fitch notes that "the cash outflow at the high end of this range related to such an acquisition would pressure the company's credit profile". Fitch expects the company would fund the acquisition from its existing strong cash position and therefore cautions that it would have more limited financial flexibility to defend its leading position in the domestic mobile market. The rating agency is also concerned about elevated competition and pressure on operating margins in Turkey, as well as political and regulatory pressure on the company. Turkcell's board of directors decided this week to submit a bid for the acquisition of a 93.99% in the Bulgarian telecom operator Bulgarian Telecommunications Company (Vivacom). The Turkish company will be the only strategic investor in the tender. The amount of its bid was not disclosed. Earlier reports said the Turkcell valued Vivacom at about USD 1.4 B, but the Turkish company described the potential bid amount in the media as "groundless". Three binding bids have already been submitted for Bulgaria's telecom Vivacom, but their amounts are not known either. Tsvetan Vassilev, the head of Bulgaria's Corporate Commercial Bank, and Icelandic businessman Thor Bjorgolfsson have made bids for Vivacom, heir to the state-owned Bulgarian Telecommunications Company (BTC), Capital daily reported last month, citing insiders. The third bidder to meet the February 27 offer deadline was Pamplona Capital Management LLP, a London-based private equity firm, according to the newspaper. Morgan Stanley is advising Vivacom's creditors to help sell the company, the people familiar with the matter said. The heavily indebted Bulgarian operator is controlled by Chinese telecoms and media tycoon Richard Li. He inherited control of Vivacom in March 2010 as part of the acquisition of AIG Investments, a unit of the troubled US insurance group which spans asset management and private equity investments. 
BULGARIA TO BUILD ITS FIRST SCIENCE&TECHNOLOGY PARK Bulgaria's first science and technology park will be constricted in the capital Sofia, it has been announced. The project is to cost a total of EUR 50 M that will be paid by EU's Competitiveness Operational Program. The park will occupy an area of 230 decares at Sofia's so-called "4th kilometer" and will be a hub for science and business that will include a business incubator and a laboratory, according to Zhulieta Hubenova, Deputy Minister of Economy, Energy and Tourism. Two or three similar parks are expected to be built over the next EU program period. In 2012, Bulgaria will start receiving EU Competitiveness projects via an electronic documentation system. POLAND MOVES TO RESCUE BULGARIA FROM EGG PRICE CRISIS Poland will increase its exports of eggs to Bulgaria, thus normalizing the market in the country after its recent shocking egg price hike. Bulgaria's Agriculture Minister Miroslav Naydenov has already talked with his Polish counterpart Marek Savicki, who has assured him that he will contact local producers immediately, the Bulgarian Agriculture Ministry has announced. Poland is the largest egg producer among the EU 27. Egg prices in Bulgaria doubled in the course of the last two weeks, exceeding EUR 0.25 per egg at some places. If a cartel agreement among egg producers is proven, the financing intended to compensate producers for complying with EU requirements on laying hens' welfare will be stopped, Naydenov warned on Tuesday. 'MADE IN BULGARIA' BESTOWS ANNUAL GOLDEN MARTENITSA AWARDS The Bulgarian Union "Made in Bulgaria" bestowed Wednesday evening the annual "Golden Martenitsa" awards. The ceremony was held for the 18th year and gathered at the National Palace of Culture in downtown Sofia leading Bulgarian businesses and institutions. The award for Economic Cooperation for 2011 was given to Litex Motors for the building and the launch of a factory near the northern city of Lovech for the manufacturing of Great Wall automobiles in partnership with the Chinese carmaker Great Wall Motors. "Albena Invest" grabbed the title "Bulgarian Enterprise of 2011" for achieving high standards in tourist services. "First Investment Bank" was awarded the title "Financial Institution of 2011" for its favorable loan granting policy for the small and medium business in the country. The "Golden Martenitsa" for media reporting was given to business journalist Mario Gavrilov from the State Bulgarian National Television, BNT, for his contribution for informing about the problems and the achievements of Bulgarian companies. The awards were bestowed by the Minister of Economy and Energy, Traicho Traikov, in the presence of Prime Minister, Boyko Borisov. Traikov said he felt honored to give the awards for the third time now in his capacity of Minister because such people and companies were the engines of Bulgaria's economy, leading to a 1.7% growth for 2011 with an increased industrial production and exports. "I am convinced that despite the fact there cannot not be protectionism for local manufacturing in the EU, there is a way to combine patriotic and market choice when we make purchases," Traikov said, citing a poll showing that in over 30% of the cases, Bulgarian-made goods were preferred when the consumer decides what to buy. He wished everyone health and endurance as it is the Bulgarian tradition when giving martenistas, stressing that to turn them golden depends on everyone's effort and talent. AGRO PROGRAM HELPS LANDLESS ROMA FAMILIES IN BULGARIA 80 Roma families from the Plovdiv region in southern Bulgaria have received financial assistance to start an agricultural business. The "LAND – Source of Income" program with the support of the America for Bulgaria Foundation are offering low-interest micro-credit schemes so that the landless Roma families can purchase land and agricultural equipment and have access to a certain amount of working capital. Some of the participants in the program have developed businesses which won subsidies under operational programs managed by the State Fund Agriculture. The aim of the LAND – Source of Income" program is to provide land and employment to landless people from the minorities. The initiative has already helped for the creation of small agricultural businesses in Perushtitsa, Parvomai and the villages near Plovdiv and Pazardzhik. Ilia Iliev from the village of Chaloukovi near Plovdiv has bought 32 decares of arable land on a low-interest loan which he will be paying back to the foundation for 5 years. He is growing peppers, tomatoes and garlic. MERCATOR TO OPEN 5 RODA STORES IN BULGARIA 2012 Slovenian retail chain Mercator plans to open five new Roda supermarkets in Bulgaria in 2012, it has been announced. Almost all of the stores are expected to be located in Sofia, since Mercator-B, the company whose goal is to develop a chain of retail stores on the Bulgarian market, focused its activity towards the capital over the past year, according to Capital Daily. Merkator-B is trying to optimize its chain in Bulgaria. The company canceled several hypermarket contracts over the past several months. In January, Merkator-B closed an existing store in the Varna Towers trade center in the Black Sea capital Varna. Currently, there are four Roda stores in Bulgaria – two in Sofia and two in Stara Zagora. BULGARIAN CONSTRUCTION, RETAIL TRADE DOWN JAN 2012 M/M According to the preliminary data of the NSI, in January 2012, the index of production in the Construction sector, calculated on the base of seasonally adjusted data, was 1.8% below the level of the previous month. The preliminary data was released by the Bulgarian National Statistics Institute, NSI. In January 2012, the work day adjusted data showed an increase by 0.2% in the construction production, compared to the same month of 2011. By preliminary seasonally adjusted data of NSI in January 2012, the turnover in Retail Trade, except of motor vehicles and motorcycles at constant prices decreased by 0.2% compared to the previous month. In January 2012 the working day adjusted turnover in Retail trade, except of motor vehicles and motorcycles, declined by 2.6% in comparison with the same month of the previous year. Seasonal adjustment is a statistical method, which eliminates the seasonal component of time series and it is particularly suitable for long-term comparisons and analysis of the data. Work day adjustment is an adjustment for variations in monthly data, caused by calendar effects, different number of calendar and work days in the month, and national holydays - for example the presence of more days off in May could contribute to the decline in the production in some activities. 
40 RICHEST BULGARIANS EARNED BGN 140 M IN 2011 The top forty of the wealthiest Bulgarians have earned a total of BGN 140 M in 2011. The data was released by the National Revenue Agency, NRA. An individual from the Black Sea city of Burgas ranks first by earned income for 2011 with close to BGN 12 M. In addition, the data shows that in the first two months of 2012 70 000 have already submitted their 2011 tax declarations – of them 6 300 online, with an electronic signature. The tax declaration deadline in Bulgaria for 2012 is May 2, since April 30 is not a workday. The forms can be submitted online, at the NRA offices across the country, by certified mail, or directly at certain post offices. More information is available at www.nap.bg and by calling toll free 0700 18 700. BULGARIA TO UNVEIL 2 PHOTOVOLTAIC PARKS BUILT BY SOUTH KOREAN INVESTORS South Korea's Ambassador to Bulgaria Chun Bi-ho will attend Thursday the inauguration ceremony of two photovoltaic parks, "Samovodene" and "Zlataritsa", located near the city of Veliko Tarnovo in central northern Bulgaria. The projects were implemented by the SDN Company and KOSEP, which is part of South Korea's national power company. The installations absorbed an investment of EUR 154 M, which makes it the biggest Korean investment in the Bulgaria. The ceremony will also be attended by Deputy Minister of Economy, Energy and Tourism Dimitar Chohadzhiev, the executive director of the Sustainable Energy Development Agency Kolyo Kolev, the District Governor of Veliko Tarnovo, Pencho Penchev and other official guests from South Korea. PRIVATIZATION OF BULGARIAN ENERGY COMPANIES ASSIST FOREIGN DEBT PAYMENTS There is an option to use the proceeds from the privatization of energy companies for financing foreign debt payments, according to Traicho Traikov, Minister of Economy, Energy and Tourism. Speaking after the award ceremony of the "Golden Martenitsa" awards by the Made in Bulgaria union on Wednesday evening, he said that the privatization of the minority stake in the Bulgarian Energy Holding (BEH) would fetch at least BGN 1 B. Traikov told journalists that the sale of minority stakes in power distributors managed by E.ON and CEZ would bring revenues of at least BGN 80-90 M. The privatization of the 33% state-owned stakes in the two power distributors was expected to happen in 2011 but was postponed and still remains unclear when they will be floated on the Bulgarian Stock Exchange (BSE). In end-December 2011, the sale of the minority stake in EVN brought BGN 93 M into the state coffers. The sale of a small share of BEH on the stock market has been on the table since the summer of 2009, when center-right ruling party GERB came to power, news portal mediapool reminds. The share that will be traded on the BSE has not yet been specified, but the figure varies between 10% and 25%, while the latest plans voiced by Finance Minister Simeon Djankov include floating a share of BEH on a foreign stock exchange. While the sale of the state-owned stakes in the power distributors is expected to happen within a few months, the preparation of the initial public offering of a share of BEH will take more time, although it is not impossible to prepare the transaction by end-2012, mediapool notes. Djankov has also commented on the option of boosting the fiscal reserve with the revenues from the sale of a share of BEH, which brings together the Kozloduy NPP, the National Electric Company (NEK), the Maritsa Iztok 2 TPP, the Maritsa Iztok Mines, Bulgargaz and Bulgartransgaz. In his Wednesday statement, Traikov specified that the Finance Minister would determine the portion of revenues from the future deals with state assets that could go to foreign debt payments. "The whole sum for the foreign debt payment in 2013 amounts to close to BGN 2 B and the privatization of a share of BEH and the other companies on the agenda may fetch at least BGN 1.3-1.4 B," Traikov added. Under current legislation, revenues from privatization go to the Silver Fund and the accumulated sums remain inaccessible until 2017, when the money is expected to provide a serious boost to pensions, mediapool explains. Finance Minister Djankov recently proposed changes to the governance of the Silver Fund that would enable a more active management of the collected funds and the investment of up to 70% of it in government securities. BULGARIA SLUMPS IN UK TOP OVERSEAS PROPERTY RANKING The Bulgarian market slumped to the 10th ranking of top worldwide overseas property destinations for the Brits, according to TheMoveChannel.com's monthly Top of the Props report. According to the ranking, in February, Bulgaria went down 4 places, compared to January, 2012. Just 1.96% of enquiries about a property purchase sent to the site in February have been related to the Bulgarian market, compared to 3.9% in January. The big surprise in February was Brazil, which ousted the UK as the world's 6th largest economy and burst into the top three worldwide overseas property destinations for the first time. The 2014 World Cup host rose eight places in the property portal's chart last month, taking over 10 percent of all enquiries on the site. Brazil's boom was big enough to beat both France and Portugal, but not enough to drown out Spain and America's steady drum of investment, TheMoveChannel explain. Spain's share of enquiries actually increased by 2.65%, securing its position above the USA as the most popular property destination in the world. GERMANS TURN THEIR BACKS ON GREECE, BULGARIA BENEFITING Greek tourism revenues could mark a 5% decrease in 2012 due to a fall in pre-bookings from Germany, industry officials have said. Greece expects tourist numbers to fall 3 % from 16.4 million last year, prompting a 5% fall in revenues, in the wake of the country's negative publicity in its top tourists markets and Germany in particular. Meanwhile pre-bookings for Bulgaria from Germany have already marked a 14% increase under the program of one of the four major tour operators - TUI, it emerged at ITB Berlin, the world's largest tourism fair. Bulgaria enjoys good prospects for profitable summer season not only thanks to its attractive resorts and price-quality ratio, but also due to a tangible outflow of tourists from Greece and Egypt, the German experts pointed out. Greece remains the greatest destination for Bulgaria's short break fans, who would rather find their pleasures closer to home and whose batteries take longer to recharge. A huge part of the active and working people in the Bulgarian capital have been spending over the last few years their summer holidays south of Sofia, in Greece and Halkidiki in particular. Unfortunately the good news about Bulgarian tourists will not bring much expected respite to Greeks from their woes. The problem, people from the Greek industry say, is with the Greek and German tourists. All the measures that the Greek government implemented in a bid to combat the crisis, particularly the hikes in VAT and fuel, dealt a heavy blow to the country's tourism sector and it was even forced to swallow a very unpopular move – a decrease in prices of the tourist packages offered. The decrease in prices though is not a decision for everyone as the smaller, family hotels, which represent the spine of Greece's tourism sector, will see their profits shrink even further. That's the reason why companies opt for keeping the prices, but offering bonuses together with the packages. BULGARIA'S RESORTS STILL SHINE BRIGHT FOR GERMAN TOURISTS Bulgaria's summer resorts have found their place in the hearts of German tourists and will not be easily ousted, latest data shows. Pre-bookings for Bulgaria from the German market mark a 14% increase under the program of one of the four major tour operators - TUI, representatives of the company announced on Wednesday at the opening of ITB Berlin, the world's largest tourism fair. Bulgaria enjoys good prospects for profitable summer season not only thanks to its attractive resorts and price-quality ratio, but also due to a tangible outflow of tourists from Greece and Egypt, the German experts pointed out. Data shows that Germans, primarily students, who have come to Bulgaria for their proms, account for 70-80% of the tourists in resorts such as Sunny Beach. The prices as low as EUR 300 per week for an all inclusive package play an important part in their decision where to spend their money and enjoy the summer sun and the sea. Germany has traditionally been the primary market for visitors to Bulgaria's Black Sea coast. About half a million Germans come here every year and they are the only one that can fill up hotel vacancies from May till October. German visitors are the largest single country represented within the figure of EU visitors, followed by the UK and Greece. German tourists have always liked Bulgaria because it offers good value in terms of food prices and accommodation expenses and last but not least has available package tours. But if a few years ago the German tourists came to Bulgaria with their families, enjoyed the classic combination of hotel, beach and sea, behaved relatively well and were active participants in all the recreational activities on offer, now they are primarily young people on a binging spree. In fact this is the latest trend in Bulgaria's coastal tourism traditions, which have been invariably linked to the German clients. The first charter flights from Western Germany to Bulgaria's Black Sea coast were launched as early as 1963, times when Turkey, Egypt and many other destinations were not even on the tourist map. Even in 1999, which was very difficult for the tourism sector because of NATO air strikes over Serbia, it was only Germany which marked a 5% growth in the number of tourists to Bulgaria's resorts on the Black Sea coast. BULGARIA'S SPA SECTOR TO FLOURISH AGAIN DUE TO RUSSIANS, TURKS Bulgaria's spa industry saw positive signs of recovery in 2011 even though a far cry from the boom years during the previous decade, figures show. The number of tourists, who visited balneo-spa hotels in Bulgaria to enjoy the balmy effects of the procedures on offer, increased by 8% last year, according to data of the country's balneo and spa tourism association. Industry officials expect balneo and spa tourism revenues to continue to increase in 2012 due to the recognition of Schengen visas for Russian and Turkish tourists. The first modern balneo-spa hotels in Bulgaria were built in the towns of Devin and Velingrad. Shortly before Bulgaria's accession to the European Union this type of hotels began to mushroom across the country together with the creation of SPA centers in hotels, the most attractive of which are those along the Black Sea coast. The foundation on which this booming industry thrives is a wealth of springs of healing mineral waters. It is namely the wide use of mineral waters that makes the Bulgarian variation of the spa culture unique as compared to the Russian bath, the Turkish bath, the Scandinavian sauna or the Asian massage centers. The effects are beneficial not only for the man who suffers from a particular illness but also for those who is considered healthy but wants to shed the side effects of a stressful and hectic life. Local experts have however recently struck a much more down-to-earth note by pointing out to the lack of strategy for the future of balneo-spa tourism, legislation and norms in staff recruiting and training. EUROSPORT TO SHOWCASE BULGARIA'S TOURISM POTENTIAL Eurosport will air a special report on Bulgaria's participation in ITB Berlin, the world's largest tourism fair, the Bulgarian Ministry of Economy, Energy and Tourism has informed. On Thursday, Bulgaria's Deputy Economy Minister Ivo Marinov met with representatives of FTI Group, REWE Group and Bravo Tours-Denmark. The business representatives offered joint advertisement campaigns that could promote Bulgaria's tourism. The campaigns include airing of Bulgarian tourism ads during charter flights, organized tourist visits, radio, TV and online commercials. "Besides our strategic aim to turn Bulgaria into an year-round tourism destination, we will continue to actively promote our sea tourism on our traditional markets like Germany," Marinov told the business representatives. Pre-bookings for Bulgaria from the German market mark a 14% increase under the program of one of the four major tour operators - TUI, representatives of the company said on Wednesday. Data shows that Germans, primarily students, who have come to Bulgaria for their proms, account for 70-80% of the tourists in resorts such as Sunny Beach. US CAUTIOUSLY PRAISES BULGARIA'S EFFORTS TO COMBAT DRUG TRADE The US Department of State has extended cautious praise for the efforts of the Bulgarian government, and specifically the Interior Ministry, to combat the international drug trafficking. "The government of Bulgaria, GOB, continues to make significant gains in counter narcotics enforcement against drug production and trafficking. Bulgaria's law enforcement has actively contributed to international investigations resulting in considerable seizures and arrests in both Bulgaria and the region," reads the 2011 International Narcotics Control Strategy Report of the US Department of State. The International Narcotics Control Strategy Report, INCSR, is an annual report by the Department of State to Congress prepared in accordance with the Foreign Assistance Act. It describes the efforts of key countries to attack all aspects of the international drug trade in Calendar Year 2011. Counternarcotics efforts are primarily the responsibility of several specialized police services within the Ministry of Interior (MOI), and the Customs Agency under the Ministry of Finance (MOF). The MOI continues to strengthen institutional capacity, with its General Directorate for Combating Organized Crime (GDBOP) taking an increasingly effective lead in counternarcotics investigations and operations. The Customs Agency continues to implement reforms and registered a slight increase in drug seizures over last year," says INCSR. According to it, organized crime groups operating in Bulgaria have increased their influence and involvement in the international narcotics trade. These groups are sophisticated, well-financed, and entrenched within Bulgarian society. The report, which was presented the US congress on March 7, notes that Bulgaria is a transit country for heroin, as well as a minor producer of illicit synthetic narcotics: "Bulgaria's location astride Balkan heroin transit routes makes it vulnerable to international trafficking organizations transporting narcotics into the European Union, the US government points out and its membership in the European Union makes it a desired target for drug trafficking organizations supplying narcotics to consumer markets in Western Europe. Bulgaria's Black Sea ports continue to be exploited by drug traffickers to smuggle cocaine from South America to Europe and heroin from Turkey and Iran to Europe. The only illicit drug crop known to be cultivated in Bulgaria is cannabis, primarily for domestic consumption. Bulgaria continues to be a source of some synthetic drugs, though production has declined in recent years," the US Department of State finds out. In terms of recent legislation, the report marks the modification of the list of controlled substances, which had greatly increased the ability of the Government of Bulgaria (GOB) to effectively combat the increasing presence of designer drugs, however, it also stresses that the lack of effective asset forfeiture legislation complicates government action against organized crime and narcotics distributors. Recent efforts to strengthen forfeiture legislation failed, it says. The report explains that over the past year Customs has continued to implement reforms, which appear to place an increased priority on the search for taxable contraband (i.e., cigarettes) at Bulgaria's borders and reduce the priority for narcotics - a trend that is illustrated by two years of historically low narcotics seizures and an updated Customs Mission Strategy which no longer includes counternarcotics as a goal. The Ministry of Interior continues to aggressively combat domestic narcotic production and from January to November closed eight synthetic laboratories, and seized 5,600 cannabis plants in what is believed to be one of the largest indoor cannabis operations in Europe, according to INCSR, adding that the efforts of Bulgarian law enforcement have led to significant narcotics seizures and arrests both in Bulgaria and outside the country. It does, however, point out that overall MOI seizures of heroin registered only a slight increase from last year, while Bulgarian Customs seizures have also increased slightly over last year, but are still historically low. Bulgarian law enforcement reports a surge in the import and use of "designer drugs," which are often shipped from China disguised as innocuous chemical products. The number of drug addicts in Bulgaria is listed at 300 000, of which 30,000 are heroin addicts, according to data of the Bulgarian Institute for Addictions, used for the report. A special section of it focuses on corruption, which remains a serious problem in the police, customs, and judiciary. "Despite reforms, the judiciary (which includes prosecutors and judges) consistently receives poor scores in public confidence and opinion polls. Complicated judicial procedures and legal loopholes result in excessive case delays which make it difficult to effectively prosecute high-profile organized crime and corruption cases. Often, officials discovered to be corrupt are reassigned or pressured to quit, rather than fired and prosecuted," reads the report. The US State Department further points out that the US DEA operations in Bulgaria are currently managed from the US Consulate General in Istanbul, however, DEA has been authorized by congress to open a country office in Sofia. In the past year, the U.S. Embassy provided State-INL-funded equipment and training to a Joint Organized Crime taskforce, which investigates and prosecutes many of the high profile drug cases in Bulgaria. The US government recommends to GOB to continue efforts to strengthen its anti-corruption laws, to reintroduce legislation to implement some form of Non-Criminal-Based confiscation, to strengthen its asset forfeiture legislation and anti-corruption laws. "While some progress has been made, further reform of the police and judiciary is necessary. The opening of the new specialized court for organized crime, if implemented properly, should be an effective tool in addressing administrative issues hampering the prosecution and sentencing of high-profile drug traffickers. Continued improvements to Customs Agency reforms are needed to ensure that counternarcotics efforts remain a priority," the US Department of State concluded. Full text of the report read HERE. US-RENOVATED HEALTH CARE CENTER OPENS IN BULGARIA US Ambassador in Sofia, James Warlick, officially opened the renovated Kermen Health Center Home in the town of Kermen, near the southern Bulgarian city of Sliven. The ribbon-cutting ceremony was also attended by the Regional Governor of Sliven, Marin Kavrakov, and other officials. The building was constructed in the distant 1906 and the US Government provided USD 103 000 for the renovation of the center under the Department of Defense's Humanitarian Assistance program. The funds were used to pay a Bulgarian contractor for repairs to the roof of the building and to the basement, the installation of a new heating system, the replacement of the existing electrical system, the repainting of the entire exterior of the building, and the installation of a wheel chair ramp. The building now has 11 renovated offices for the use of community medical personnel and residents, the US Embassy in Sofia informs in a press release. Warlick pointed out it was an honor and a privilege to extend this gift to Kermen residents, the Bulgarian 24 Chassa (24 Hours) daily writes, further informing the diplomat had enjoyed a bouquet of snowdrops he had gotten from a local beauty in folk attire and hade cheered the horo (traditional Bulgarian folk dance), which had welcomed him. In the last two years, the Office of Defense Cooperation has donated over USD 722 151 to various humanitarian assistance projects in Bulgaria. SCHENGEN HOPEFULS BULGARIA, ROMANIA HOLD BREATH UNTIL SEPT Brussels will take its decision on Bulgaria and Romania's bids to enter the Schengen agreement in September, it was confirmed on Thursday. "I hope that in September Brussels will approve a two-phase approach for Bulgaria's and Romania's accession to the European Union's borderless Schengen area," Bulgaria's Interior Minister Tsvetan Tsvetanov announced in Brussels on Thursday after the meeting of the Justice and Home Affairs Council. Last month's Cooperation and Verification mechanism report registered Romania's progress in combating organized crime and corruption, but demanded stronger action from Bulgaria. At the beginning of March Dutch Prime Minister Mark Rutte reiterated that his government is not against the two countries joining the free zone, but wants absolute guarantees they will be applying the Schengen criteria. He explained that The Hague wants to see positive reports of the European Commission under the Verification and Monitoring Mechanism as evidence and a fact Bulgaria and Romania are doing everything necessary. The two EU newcomers were expected to enter Schengen in the spring of 2011, but their entry was blocked by countries such as France, Germany, the Netherlands and Finland, who had worries that problems with organized crime and corruption might jeopardize safety in the Schengen Area. Both Bulgaria and Romania have been placed under the so-called EU Cooperation and Verification Mechanism in justice and home affairs, in view of perceived problems in the management of corruption and organized crime. BULGARIA RISES AGAINST EU VINE LIBERALIZATION Bulgaria has declared its opposition to the liberalization of vine planting rights in the European Union that is scheduled to begin from 2016. Thus, the Balkan country has become the 15th EU member state to the planned liberalization after Germany, France, Italy, Spain, Portugal, Hungary, Austria, Romania, Luxembourg, Cyprus, the Czech Republic, Slovakia, Greece and Slovenia. In 2007, the Council of Ministers gave the green light, to the liberalisation of planting rights, as the European Commission wanted to make the bloc more competitive in the face of strong growth in so-called "New World wines" coming from South America, Australia and South Africa, Europolitics has reminded. However, wine producing countries in Europe have since shown increasing hostility towards the move, claiming that liberalisation would create market imbalances and result in excess production. According to a report presented by the Assembly of European Wine-Producing Regions (AREV), the elimination of planting rights could result in an "overproduction crisis". Opposition to the proposed liberalization of vine planting rights is also said to be growing in the European Parliament. ROMANIA OPTIMISTIC ON SUMMER CVM REPORT This summer's Co-operation and Verification Mechanism report may very well be the last one, the country's Foreign Minister Cristian Diaconescu believes. "Under the current system, I have enough arguments to believe that this will be the last reprt within the framework of the mechanism," Diaconescu has told Agerpres, as cited by the Bulgarian Telegraph Agency. The Romanian Foreign Minister reiterated that the Co-operation and Verification Mechanism should not be tied to other issues such as his country's potential Schengen entry. On Wednesday, Diakonescu met with Catherine Day, Secretary General of the European Commission. Day also reiterated the very clear position of the institution she represents with respect to the distinct character of CVM reports and Schengen enlargement. Romania and Bulgaria have been placed under the so-called EU Co-operation and Verification Mechanism in justice and home affairs, in view of perceived problems in the management of corruption and organized crime. Even though February's CVM report on the two EU newcomers did not contain political assessments, it was widely interpreted as more positive on Romania than on Bulgaria. The Netherlands will continue opposing Bulgaria and Romania's Schengen aspirations until its sees two consecutive positive CVM reports. NO UNPARDONABLE CRIMES EXIST, BULGARIAN VP SAYS Bulgaria's Vice President Margarita Popova has stated that there are no crimes that she never would pardon. "Pardoning is an act of kindness and bigheartedness on behalf of the Head of State and the balance between humanity and justice is very subtle," Popova said at a press conference on Thursday. She vowed to scrutinize each and every pardoning request and ensure full transparency of her decisions. Popova tofficially presented the chair and members of the Pardons Committee. The pardoning body consists of experts in the fields of criminal legislation, forensics and judicial psychiatry. The idea to place inside experts in charge of the Pardons Committee was proposed by Popova after the scandal with the questioned capacity of her predecessor, Angel Marin, broke out. The problem surfaced after it was revealed that former President Georgi Parvanov had failed to issue a second decree delegating a number of prerogatives, among which the granting of pardons, the cancellation of uncollectible debts to the state and the and the granting, restoration and withdrawal of Bulgarian citizenship, to the Vice President for the second term in office. During his two terms as VP, Marin had pardoned 533 felons, some convicted for grave crimes such as murder and rape. BULGARIA PM: BONUS REPAYMENT ORDERS WERE POPULIST Prime Minister Boyko Borisov has termed his order for the repayment of bonuses received by government officials as "populist", citing the low salaries and the huge responsibilities of public office holders. "Bulgaria has been plagued by rampant populism as regards bonus payments. We keep thinking like a post-communist country, or even as communists. I am also part of the "we" in this case," Borisov stated in an interview for Thursday's morning broadcast of Nova TV. The Prime Minister reminded that the allocations for international business travel had remained unchanged for 22 years, meaning that a Prime Minister or Minister had to rely on a sum of EUR 20-30 a day. "This is sheer populism. Everybody who has been to Brussels knows that if you go to a cafe to have a coffee and a banitsa, this sum will not be enough," Borisov remarked. The Prime Minister explained that he had planned to block board participation fees as soon as center-right ruling party GERB came to power, but reminded that there were over 50 ordinances providing for different mechanisms for granting additional financial incentives. Borisov said that he had had to put the public officials through the humiliating situation of having to repay the extra money or else face losing a job. He went on to accuse Deputy Ministers of trying to cheat with the excuse offered by Ahmed Dogan, leader of the ethnic Turkish Movement for Rights and Freedoms (DPS) party. Encouraged to return his fee of over BGN 1 M for consulting services on the Tsankov Kamak hydroelectric power plant project, Dogan advised the media to differentiate between fees and bonuses. Borisov vowed that the bonus saga would come to an end thanks to that legal changes drafted by GERB which would increase the salaries of senior public officials in the next Cabinet. "We shall make a law that will regulate all bonus payments and will also increase the salaries of the Prime Minister and the Ministers in the next government," Borisov assured. BULGARIAN MPS CLASH OVER STATE SERVANTS ACT The Members of the Bulgarian Parliament passed at first reading Thursday amendments to the State Servants Act. Yanaki Stoilov, from the opposition left-wing Bulgarian Socialist Party, BSP, stressed the Bill had been submitted in November and entered plenary hall at this precise moment only due to the public pressure generated by revelations about huge bonuses distributed to senior officials. The opposition further declared themselves against eliminating years of service as a factor for pay raise and accused the labor unions of being passive and silent on the issue. The other major opposition party, the ethnic Turkish Movement for Rights and Freedoms, DPS, declared they would not endorse the amendments because the texts were unclear. DPS MP, Hassan Ademov, noted that the changes would not affect political cabinets and the Ministries of Defense and Interior. Deputy Prime Minister and Finance Minister, Simeon Djankov, is in plenary hall Thursday to take part in the debates. The amendments aim at stopping the practice of distributing large amounts of money as incentive for employees from the State administration i.e. the so-called bonuses. There will be a new way to form State servants pay – they will have a constant wage and will get additional money based on performance and/or overtime work, up to 30% of the constant wage. There will be also a constant amount up to 5% from the expenses for salaries for attracting and keeping professionals whose qualifications are deemed extremely important for the administration. Performance assessment will be done on a scale from 1 to 4. Performance-based bonuses will be given up to 4 times a year. Those who fail to fulfill their job duties will not receive anything above the constant wage for the respective period. TOP BULGARIAN SOCIALIST HONORS JOURNALISTS ON INTERNATIONAL WOMEN'S DAY The leader of the opposition left-wing Bulgarian Socialist Party, BSP, and former Prime Minister, Sergey Stanishev, sent Thursday flowers to all female parliamentary reporters on the occasion of International Women's Day. Stanishev, who is also the Chairman of the Party of the European Socialists, PES, is on a working visit to Berlin. On his behalf, the BSP press center offered to female journalists pale pink roses. The left wing marked and mentioned the day on several occasions Thursday and several MPs offered flowers and chocolate candy to their female colleagues. The ruling, center-right Citizens for European Development of Bulgaria party, GERB, also honored the day by a children performance at the GERB MP Club, organized by Daniela Petrova, GERB MP and Chair of the Parliamentary Culture Committee. SOFIA UPS PARKING FEES, TIGHTENS REGIME After long hours of heated debates, Sofia municipal council approved on Thursday plans for a hike in parking fees, to be enforced as of the beginning of September. The fee for an hour's stay in the blue parking zones in downtown Sofia will increase from BGN 1 to BGN 2, under the adopted program for development of the public transport. The fee for parking in the green zone in Sofia has been set at BGN 1 per hour. Drivers will be allowed to park their vehicles in the blue and green zones for no more than two and four hours respectively. All who want to pay their parking fees in a hassle-free way have to send a text message to number 1302 for subscribers of the three mobile operators Mtel, Globul and Vivacom. After sending the SMS, the person gets a reply that the payment was successful. Five minutes before the pre-paid hour elapses, the subscriber receives a notification. The adopted measures are likely to trigger anger among drivers and people living in the blue and green zones, who will be obliged to pay an annual fee of BGN 150 and BGN 100 respectively. Families living there will have to dig deeper in their pockets and pay fees three times higher if they have a second car. In a bid to justify the controversial measures, municipality members said they aim to bring order in the parking lots and ease traffic in the capital. BULGARIA CELEBRATES INTERNATIONAL WOMEN'S DAY Bulgarian women celebrated on March 8 the International Women's Day – a holiday that celebrates ladies' economic, political and social achievements. The International Women's Day established itself as an official holiday in Bulgaria with the arrival of the Socialist regime in Bulgaria in 1944, but its popularity grew immensely in the 1960s. Nowadays the holiday is mostly about paying a tribute to mothers and invloves giving flowers and other gifts. The history of this day goes back to 1910 when an international conference of working women was held in Copenhagen. Clara Zetkin, leader of the women's office 'for the Social Democratic Party in Germany, tabled the idea of an International Women's Day. She proposed that every year in every country there should be a celebration on the same day, a Women's Day, to press for their demands. The very first International Women's Day was launched the following year on March 19 and its success exceeded all expectation. In 1913 International Women's Day was transferred to 8 March and this day has remained the global date for International Women's Day ever since. Novinite.com wishes all women in Bulgaria and around the world a very happy Women's Day! BULGARIA MOVES TO BRING BACK HISTORICAL TREASURES FROM ABROAD Bulgaria is launching a campaign to bring back some of its illegally exported historical treasures from abroad, the country's Culture Minister Vezhdi Rashidov has announced. The Bulgarian government is currently working towards recovering 160 valuable icons from Italy. In 2009, a total of 2200 artifacts that had been illegally exported to Italy were successfully sent back to the country. "We will also travel to the US to negotiate and create conditions necessary for bringing back valuable Bulgarian artifacts, since this is precious for our country," Rashidov said on Thursday, as cited by the Bulgarian Telegraph Agency. "It was only in Canada where I got to understand that illegal antiquity dealership is second only to drug dealing," the Culture Minister added. In June 2011, he delivered 21 000 antique objects from Canada to Bulgaria in carry-on luggage following the Canadian Court rule they were illegally exported from Bulgaria. Rashidov pointed out that countries exist which are not obliged to return such antique objects, but his cabinet is nevertheless coping courtesy of "high diplomacy." BULGARIAN PM MULLS AXING HEALTH MINISTER Bulgaria's Prime Minister Boyko Borisov will decide in a week's time weather or not to sack the country's Health Minister Stefan Konstantinov. A scandal erupted in February after a spate of media publications claiming that prices of medicines produced by local drug maker Sopharma were higher in Bulgaria than in Serbia and Turkey. Sopharma was also suspected of having established a monopoly in supplying medications to hospitals. Borisov already dismissed Deputy Health Minister Gergana Pavlova on the grounds that she had failed to explain the pharmaceutical pricing policy. On Thursday, the Prime Minister announced that he has ordered several inspections that would determine whether Konstantinov was aware of the problem with drug prices were and if he was obliged to be aware of it. In an interview for Nova TV, Borisov admitted that health care is his government's weakest link. "It is a pity, since even though we feel we are not coping well, we are puring more and more money into it – nearly BGN 3.5 B – and we cannot detect how it is being siphoned out," he commented. If Konstantinov is fired over the medication prices scandal, the Prime Minister will have to appoint a fourth Health Minister in the course of less than three years. TURKISH MAN KILLED IN BULGARIA WAS CIGARETTE SMUGGLER - REPORT Details have allegedly emerged surrounding the death of Orhan Geylan, a 60-year-old Turkish businessman whose body was found on Wednesday near the Southern Bulagrian town of Gotse Delchev. Geylan had registered several companies in Bulgaria that dealt mainly with trade in fruits and vegetables. However, police officers believe that he was actually engaged in cigarette smuggling. The murder has been carried out with extreme cruelty, police officers have told the local Struma newspaper. Deep stab wounds have been discovered on the victim's head, face and heart. Pieces of paper with the names of various cigarette brands written on them have been found near the body. Geylan was probably murdered some 5 to 7 hours before his body was discovered on Wednesday in an abandoned minivan near the village of Borovo. The white minivan in which the businessman's body was found had a double bottom. FIRE DESTROYS PROPERTY OF BULGARIA'S NOTORIOUS RASHKOVI CLAN A fire has destroyed two vans, a car, 1500 hay bales and the roof of an agricultural building in the controversial southern Bulgarian village of Katunitsa. The damaged building was owned by Ivan Rashkov, the deceased son of Roma clan leader Kiril Raskov, but was rented to a resident of Katunitsa, who used it to store hay and agricultural machinery. The fire broke out at around 2 a.m. on Thursday in the agricultural building located neat the new overpass in the village. The flames destroyed two vans, a car, some 1000-1500 hay bales and damaged the roof of the building. Five teams of firefighters were dispatched to put out the blaze. The fire has been extinguished but there is still smoke coming out of the building. The cause of the fire has not been established yet. According to Plovdiv Police Chief Todor Chonov, police are working on all possible versions for the accident, including arson. Four people have been summoned to testify at the Regional Police Department in Asenovgrad and expert statements are yet to be provided. Locals believe that the property was deliberately set on fire by some member of the Rashkovi clan in a bid to escalate tensions in the village. After the incident in end-September 2011, when 19-year-old Angel Petrov got run over and killed by a van driven by an alleged associate of Kiril Rashkov, protesting locals and groups of football fans from the nearby Plovdiv set fire to a number of properties of the Rashkovi clan. On February 15, the grandson of Kiril Rashkov, Angel, and his aunt, Sabka, filed a civil lawsuit against a resident of Katunitsa, complaining that he had vandalized property of the clan. Rashkovi demanded BGN 10 000 in compensation for damages incurred to two vehicles owned by the family. Meanwhile, Sabka Rashkova was given a two-year suspended sentence with four years of probation and a fine of BGN 10 000 for keeping unregistered antiques and art objects. BULGARIAN MMA CHAMP STABBING SUSPECT KEPT IN JAIL The main suspect in the stabbing of Bulgarian MMA fighter, Blagoi Ivanov AKA Bagata, - 23-year-old D.S. known as Dampela, is going to be kept under permanent detention. The Thursday rule of the Sofia Court of Appeals upheld the one of the lowest instance. Dampela is charged with attempted murder. He has a criminal record for extortion, drug possession and distribution, and fake car registration documents. On Sunday, February 7, Ivanov and two of his friends had just occupied their places in a bar on Graf Ignatiev Str., in downtown Sofia, when a group of 8 persons armed with bats and knives allegedly came in and attacked them. At 5.10 am police came in to find the attackers escaped and Ivanov with a deep stab wound under his armpit. Ivanov's two companions have suffered only light wounds and bruises and have been discharged by the hospital. Many of the witnesses of the brawl were inebriated at the time, which has made the work of police harder. Interior Minister, Tsvetan Tsvetanov, declared this is a purely criminal case triggered by drunken rage. On Thursday, Dampela's defense lawyer Radost Karaivanova commented before journalists that the investigation is collecting evidence only in support of the prosecution's case and skips questioning certain witnesses on purpose. According to Karaivanova, this has been a drunken fight initiated by Bagata, who had been pestering her client and slapped him on the face in the presence of a number of people. Friends and relatives of the champion, however, insist he had been injured while attempting to break a fight. Karaivanova further rejected information that Dampela had bragged in public about stabbing the celebrity competitor as the prosecutor claims, and says he only learned about Bagata's injuries from the internet. Upon realizing it, he went on his own to the police to explain what happened. It was reported meanwhile that Bagata has been upgraded from critical to stable condition and has regained consciousness in the Sofia emergency Pirogov hospital, but his life is still in danger. Blagoi Ivanov aka Bagata won the gold medal in the 2008 World Sambo Championships and the bronze in the 2006 world contest. He is known in Bulgaria for organizing and participating in so-called "free fights," in which the audience bet on the outcome. BULGARIAN PROSECUTOR PROBES MEDICATION PRICE POLICY Bulgaria's Health Minister, Stefan Konstantinov, announced Thursday that he had alerted the Chief Prosecutor about irregularities in contracts for medications sealed by the National Health Insurance Fund, NZOK. The move came after it emerged in recent days that NZOK had paid BGN 6 M more for medications in 2011, compared to 2010, when the signing of the contracts was under the authority of the Health Ministry. Some of the medications had a price that skyrocketed 10 or more times in 2011. In an interview for the private bTV, Konstantinov reiterated he did not know about the more costly medications and was guilty only of overly trusting his now-dismissed Deputy, Gergana Pavlova, who was in charge of the medication policy of the institution. He also declared he is subject to constant attacks because he refused to be part of any scams. He explained that this was the precise reason why he refuses to resign i.e. admit the victory of those who are draining NZOK. In a parallel interview for Nova TV, Prime Minister Boyko Borisov, informed he will decide in a week's time weather or not to sack the Health Minister over the latest scandal with the prices of medications, after examining all documents he had gathered on the case. Borisov's Deputy and Finance Minister, Simeon Djankov, cast strong doubt that Konstantinov did not know about these prices, saying it would be as he was to say he did not know the percentage of the interest rates. In response, the Health Minister launched a counterattack, stressing that Djankov had been much closer to his two Deputies, appointed way before he took over the Ministry, and that information usually reached the Finance Minister much faster. According to Konstantinov, it was NZOK which should have protected the interests of the Ministry and of patients. Meanwhile, Chief Prosecutor, Boris Velchev, confirmed he had ordered a probe in the case, and promised that if there is established evidence of a crime, there would be a Court trial. Velchev reminded that the Prosecutor's Office is competent in the Penal Code, not medication price policies. BULGARIAN SCIENTIST: CHOCOLATE IS SWEET SALVATION Click here to read the story: www.novinite.com/view_news.php?id=137366 SPA OR RING? A: I think that when a man has no doubts about his love to a woman, he should give her a diamond ring. B: Well, if he has any doubts, he should give her a voucher for a spa center - it will cost incomparably cheaper and may even make the diamond ring redundant! FRESH MASSACRE IN SYRIA, DEPUTY MINISTER DEFECTS Dozens of people have been killed in a suburb of Syria's battle-scarred city of Homs, BBC reported, saying activists have described the attacks as a "new massacre". Forty-four of those killed came from just a handful of families, the Local Co-Ordination Committees (LCC), a Syrian-based opposition activist network, said. At least 60 people were killed in Syria on Thursday as former U.N. Secretary-General Kofi Annan cautioned against outside military intervention, saying it could worsen an already precarious situation. Security forces attacked a funeral procession in the Damascus neighborhood of Mazzeh and targeted the car carrying the body, the network said. The Syrian Observatory for Human Rights, another opposition group, said those arrested numbered in the dozens. Violent clashes were reported in Idlib province, and more than 50 young men were arrested in a "detention campaign" in Hama, the LCC said. Two blasts rocked the town of Izaz near the Syrian-Turkish border Thursday morning, according to the Syrian Observatory for Human Rights. The blasts were followed by fierce clashes between government soldiers and soldiers that had defected. Shelling and rocket attacks were also reported in the Homs neighborhoods of Bab Tadmur and Jib al-Jandali Thursday, the fifth day in a row of government attacks there, the group said. Syria, which blames the violence on "terrorists," has said it is trying its best to get aid to hard-hit areas. Refugees continue to flee Syria for Lebanon, officials have said. Earlier in the day a high-ranking member of the government announces in a YouTube video he is defecting from the al-Assad regime. In a YouTube message posted late on Wednesday, Abdo Hussameddin, one of two deputy oil ministers, accused the government of "barbarism". He read out a four-minute denunciation of the regime he said he had served for the past 33 years. "I am joining the revolution of the people who reject injustice and the brutal campaign of the regime," he said. "I tell the regime, which claims to own the country, you have nothing but the footprint of the tank driven by your barbarism to kill innocent people." He said he was stepping aside although he knew that his house would be burnt and his family persecuted by the regime. The Syrian government has not publicly commented on Hussameddin's announcement. US CHEVRON MEETS WITH ROMANIAN PM OVER SHALE GAS DRILLING Romanian Prime Minister Mihai Razvan Ungureanu has met representatives of US energy giant Chevron in Bucharest to discuss the start of shale gas drilling in Romania. Chevron, the second largest oil and gas company in the US, recently lost the opportunity to conduct shale gas exploration and production activities in neighboring Bulgaria over environmental concerns, Romanian news agencies remind. The American ambassador to Bucharest Mark Gitenstein also attended the meeting in Bucharest, according to local news sources. During the March 06 meeting, an anti-shale gas protest was held in front of the Economy Ministry in Bucharest. Chevron has won the right to carry out shale gas exploration activities in the Barlad county. At the end of last year, Chevron's director for Romania Thomas Holst announced that the company would start drilling for shale gas the first months of 2012. Hungarian MOL and Canadian Sterling have also shown interest in shale gas development in Romania. Following widespread protests, on January 17, the Bulgarian government revoked a shale gas exploration permit granted to US Chevron for deposits in Northeastern Bulgaria, citing the insufficient proof of the environmental safety of hydraulic fracturing. On January 18, the Cabinet imposed an indefinite ban on hydraulic fracturing, a method which involves injecting a mix of water, sand and chemicals at very high pressure deep underground to crack rock and release oil and gas. Despite the move, Bulgarian environmental activists launched new initiatives in end-February, insisting that the ban should be enshrined in a law. |
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