Archive for January, 2005

The Parliament Passed on First Reading the Draft Law for Amendment of the Constitution Allowing Foreigners to Acquire Land

Monday, January 31st, 2005

The draft law was proposed to the Parliament in November last year by the ad hoc parliamentary commission. Borislav Boyanov & Co. as a member of AmCham and BIBA took an active role in the discussions in the parliamentary commissions, through which the draft went, thus helping for the preparation of the proposal promoting the abolishment of the ban on sale of land to foreigners. According to the amendments submitted to the Parliament, foreign individuals and legal entities will be permitted to acquire land under conditions ensuing from Bulgaria’s accession into the European Union (however, subject to the agreed 7-year suspension period after the accession), in case of ex lege inheritance, or by virtue of international treaties ratified by Bulgaria. Pursuant to the Constitution the proposal for its amendment has to pass through a total of three readings to become a law and after that in order to enter into force it shall be promulgated in the State Gazette.

Public Offering of the State Owned Stake in BTC Scheduled for January 27, 2005

Wednesday, January 19th, 2005

On January 27, 2005 all 2,869,573 state owned shares representing 34.78% of the share capital of BTC AD, the recently privatized incumbent telecommunications fixed telephony operator will be offered to the public on the Bulgarian Stock Exchange – Sofia. The end date of the public offering of the state owned stake in BTC is the earlier of February 28, 2005 or the date of the purchase of the whole outstanding amount of shares. The nominal price of one share is BGN 35 and the initial offered price per share is BGN 100 which can be paid exclusively in non-monetary compensatory instruments. The minimum lot for sale will be one share so that all potential investors and especially the individual investors have equal chances.

EVN AG Acquired the Majority Stakes of the Capital of the Stara Zagora and Plovdiv Electricity Distribution Companies

Wednesday, January 19th, 2005

On January 14, 2005 the Privatisation Agency endorsed the temporary share certificates for 126,094 shares representing 67% of the share capital of the Stara Zagora Electricity Distribution Company and for 104,788 shares representing 67% of the share capital of the Plovdiv Electricity Distribution Company in favor of EVN AG, Austria. Thus, EVN AG became the legal and exclusive owner of the privatized majority stakes in the share capital of the two companies. Borislav Boyanov & Co. was part of the consortium lead by BNP Paribas which advised the Bulgarian Government on the successful privatization of the electricity distribution companies.

Bulgaria Ranked in the Group of Mostly Free Economies

Thursday, January 6th, 2005

Bulgaria is ranked 52 among 161 states worldwide on the basis of a valuation according to a list of 50 independent variables divided into 10 broad factors of economic freedom, according to The 2005 Index of Economic Freedom, released recently by the Heritage Foundation and the Wall Street Journal. In last year’s index Bulgaria was 78. The significant progress places Bulgaria in the group of states with mostly free economy comprising countries like Hungary – ranked 35, Poland – 41, Slovenia – 45, Greece – 59, etc. The 11th edition of the Index concludes that Bulgaria’s economic policy continues to reflect commitments to International Monetary Fund guidelines and European Union accession requirements.