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Pearl Lodge (007) Video Update 9

17 April, 2008

The latest Video Update for Pearl Lodge (007) is now on our web site.

Part 1 - Click play to view video

Part 2 - Click play to view video

Bulgaria shrugs off global credit crisis

19 November, 2007

By Kerin Hope and Theodor Troev

Home owners in many parts of the world have reason to worry about the implications of the international credit crisis. In Bulgaria, they do not. Bulgaria's residential property market is showing unexpected resilience thanks to investment by east Europeans and increasing numbers of local buyers.

Interest from foreign investors remains high, as they are aware that Bulgaria still has the lowest property prices in the European Union, says Michail Chobanov, chief executive of Sofia-based Bulgarian Properties.

Investors from Russia and Romania have started to replace the British and Irish buyers who were the first to put the Black Sea coast and Bansko, a ski resort south of Sofia, on the international second-home map. "The credit squeeze has had an impact mainly in the US and the UK, while the market in the past six months has been driven predominantly by investors from Russia, Romania, Poland and Ukraine," says Rossen Dimov of Rockarch Estates, a London-based property consultancy.

Russians and other east Europeans, who filled Bulgaria's Black Sea resort hotels in the communist era, are returning as buyers of holiday homes. Estate agents say sales to east Europeans, whether of low-priced apartments or high-end villas in gated developments, have shown a significant increase this year.

"I chose Bulgaria because it's close enough to drive to if I want, and I feel at home - all the older people speak Russian. And it was afford-able, unlike the prices here," says Pavel Sinelnikov, a businessman in St Petersburg who bought a twobedroom apartment at Golden Sands, the second-largest Black Sea resort.

Georgi Kirov of Colliers Bulgaria, the property consultants, says prices at big resorts on the Black Sea coast had doubled within a few years before starting to decline even before the credit squeeze, because of an oversupply of apartments and the slow pace of infrastructure improvements.

Other market segments are unaffected, however.

"The squeeze accelerated this trend regarding seaside apartments, but high-end coastal developments and residential property in Sofia are doing well," he says.

Bulgaria's strong economic growth in the run-up to EU membership, averaging more than 5 per cent annually, has pushed up incomes for private-sector workers. Mortgages are widely available from the local subsidiaries of Italian, Greek and Austrian banks.

According to the Bulgarian central bank, property purchases in the first eight months amounted to €1.16bn ($1.7bn, £808m), equivalent to about 35 per cent of total foreign direct investment since Bulgaria joined the EU last January.

Bulgaria's property boom was initially driven by investors from the UK and Ireland, attracted by cheap prices for newly built second homes and one of the lowest costs of living in Europe. Three years ago, a 60 square metre holiday apartment on the coast sold for about €36,000, while a four-member family could holiday comfortably for a month on about €400.

Apartment prices on the coast doubled before starting to decline this year, with some estate agents offering discounts of 5-15 per cent on new developments to attract more buyers. But prices are still buoyant for developments around new golf courses or on unspoiled stretches of coastline, which are popular with wealthy east Europeans and Bulgaria's new rich.

The capital Sofia, along with the port of Varna on the Black Sea coast, is seeing steady population growth as skilled workers migrate from provincial Bulgarian cities.

The supply of residential properties is growing fast, but demand is stronger still. Prices have risen 13-18 per cent this year, according to Myles Summerfield, chief executive of LS Property, a Sofia-based company that focuses on retail and commercial developments in the Balkan region. "This market looks strong as prices are still 20-30 per cent less than other comparable east European cities, and there is a growing local market looking to buy in better areas, in developments with more facilities," he says.

This is the last in the series.

14 November 2007 Newsletter

14 November, 2007

06 November 2007 Newsletter

06 November, 2007

01 November 2007 Newsletter

01 November, 2007

26 October 2007 Newsletter

26 October, 2007

15 October 2007 Newsletter

15 October, 2007

09 October 2007 Newsletter

09 October, 2007

03 October 2007 Newsletter

03 October, 2007

October 2007 Newsletter

26 September, 2007

September 2007 Newsletter

19 September, 2007

New route from London to Sofia announced by Easyjet!

18 September, 2007

The direct flights from London Gatwick to Bulgaria's capital will run three times weekly and commence on November 6th 2007. The no frills airline will offer return tickets from just £51 making the city appealing as a weekend break destination as well as an easily accessible second property hot spot.

The next mountain spot in Bulgaria

10 September, 2007 (Sofia Echo)

There are plans for a grandiose tourist complex in Bulgaria's biggest Rhodopi Mountain, where the the former biggest Balkan ski resort Pamporovo can also be found. The project, called Perelik, is planned to be constructed at the foot of the highest Rhodopian peak, Perelik, and consists of 200 km ski runs and about 100 km of ski lifts, Bulgarian-language Standart reported.

On August 29, Smolyan municipal councillors voted on, and approved, the establishment of a mixed company between STC Perelik AD and the municipality, which is expected to give its share of land to the new enterprise.

The construction works under Perelik are planned to start in the autumn of 2007 and will take about six years. The councillors said only ski runs and lifts would be constructed, not huge concrete buildings and heavy infrastructure. Only four restaurants are planned, which is, however, hardly possible when setting up tourism infrastructure of such a size. The project is estimated at more than 300 million euro.

The sports complex is planned to be spread over the villages of Stoikite, Gela, Solishta, Stikul and Mugla. Gela and Mugla are traditional Bulgarian Rhodopi villages that have thousands of visitors during the annual fairs and are famous for gifted folk singers and unspoilt nature.

Private land owners, from the village of Mugla, started protesting against the Perelik project. They said the planned tourism centre had "swallowed" their lands, which had not been returned to them.

Environmental organisations also alarmed, they are worried about the future of Rhodopi Mountain. In the beginning of 2007, the Government excluded large areas of the planned ski complex from the Natura 2000 list. In addition, the environmentalists are asking what the consequences for the region's water supplies will be as 16 lake are planned to be dug as part of the artificial snow facilities. The weather over the past winters did not provide sufficient snow for skiing in the area. The environmentalists also said they worried that the mountain has been bought by Asian companies.

The idea for the Perelik complex was an old one, the Smolyan municipal councilors said. The realisation of the project was now in the hands of the Smolyan businessman Kiril Assenov, who was the first blinds producer in Bulgaria and is one of the biggest entrepreneurs in the Rhodopi region. He owns the company Areksim, which now deals in garden furniture production, blinds, machine building and CD devices. Assenov has also, reportedly, been connected to the National Movement for Stability and Progress party and to Simeon Saxe-Coburg. In addition, he was best man for the deputy minister of ecology and water affairs Lyubka Kachakova.

The Perelik project received an Investor First Class certificate from the state. An airport near Smolyan and a 100km three-lane road from Plovdiv are planned for construction, with state participation. According to Assenov, the profits could reach 300 million leva a year.

The part of the project near Gela village is planned to envelop about 40 hectares (0.4 sq km), including the area near Shilestata Chuka peak (2188m).

Smolyan municipal councillors also approved a project contract with a second investor in the Perelik project - Gela Engineering (GE). The second agreement applies only to the construction in the Gela village area, for which a company between the municipality and the investor will be created. The local municipality decided to own a 25 per cent stake plus one share. This, according the contract, would guarantee the veto right on decisions concerning the more important questions. The major shares will belong to GE.

During the municipal meeting, the councillors also agreed to exchange state lands in the region of Perelik peak with municipal lands and forests in other settlements. The Smolyan municipality is planning to exchange 10.18 sq km lands from the forest fund and 5.2 ha (0.052 sq km) of agriculture lands for state land in the Perelik area, Bulgarian language Dir.bg reported on August 30.

The Perelik project is intended to be completed in the period 2012-2014.

Bulgaria's newest hotspot: Pamporovo

18 July, 2007

Pamporovo can lay claim to the sunniest mountain resort in Europe. Boasting an average of 270 days of sun a year, and is renowned as a year round resort, offering fun for all the family.

It's proximity to Plovdiv airport and the Greek border means that access is easy- and it's due to get even easier in the near future. The airport will be starting schedule flights from the UK later this year, making it likely that prices here will continue to grow rapidly in the future.

The resort is just 30 kilometres from the Greek border, and new road-building work is expected to boost tourists' inflow from Greece. What's more, the Bulgarian are injecting €600,000,000 (six hundred million Euro- approximately £410,000,000) of funds into the area over the next five years, which will attract further investment and have a great impact on high capital returns.

As a year-round holiday resort, Pamporovo can offer potential property rental of 52 weeks a year. It provides fantastic skiing and ice skating in the winter, while in the summer the list of available activities is endless; golfing, hiking, fishing, cycling, paragliding, camping, horse-riding, orienteering, bird-watching, rock climbing, swimming. Then there are the ancient amphitheatres and monasteries to explore....

Ice Climbing Cycling

This part of the country is blessed with a majestic natural landscape. Intensive development is officially restricted, thereby preserving the area's natural terrain of forests, mineral springs and lakes. Property prices in Pamporovo are still well below that of other resorts in Bulgaria- and it's estimated that property here will triple in value within a three year period, making for excellent capital returns.

Pearl property is an established family-based real estate agency with offices in Pamporovo and the UK. Their friendly and knowledgeable staff are available seven days a week, and are happy to offer you free advice and guide you through the purchasing process. The company is able to offer over 7,000 properties for sale- starting from just €5,000 (£3,385). Prices are not inflated, coming directly from the developer.

Hunting Paragliding

Pearl property are the main estate agents for Pearl Lodge, the only five-star resort in Pamporovo. A gated community, over looking a lake Pearl Lodge has 54 apartments, and great facilities. Indeed, it's the only development in the region being built to UK standards. Amazingly, prices at Pearl Lodge are the same as for a three-star Bulgarian-build in the area.

The development is highly recommended.

For further details, call Pearl Property on free-phone 0800 047 0466 or email info@pearlproperty.net. To view a video of the development, or view other available properties, visit www.pearlproperty.net.

COMMERCIAL PROPERTY MARKET IN BULGARIA TO GROW BY 300 PER CENT

11 May, 2007 (Sofia Echo)

The commercial property market in Bulgaria is expected to grow by 300 per cent in the next three to five years said Atanas Garov on May 8th. Garov took part in a conference linked to the upcoming Balkan property exhibition. All parts of the property market had been developing dramatically and investment was expected to increase in the next years. Office property market growth was expected to double in the next three years.

EU ACCESSION INCREASES RESIDENTIAL PROPERTY PRICES IN BULGARIA

2 May, 2007 (Sofia Echo)

The price increase of residential property in Bulgaria after the country's EU accession is sufficiently higher than expected, research ordered by investor.bg showed. The price hike concerns both old and new construction in Sofia and in other bigger cities and towns. The prices per m² went up three to 12 per cent in Sofia's residential districts. According to an online poll by investor. bg, 30 per cent of the Bulgarians think that EU membership led to a sufficient increase of residential property prices.

Substation Pamporovo - the Most Modern in Bulgaria

19 March, 2007 News.bg

The Bulgarian Minister of the Economy Rumen Ovcharov will open the new Pamporovo substation on March 21, reported the mayor of the famous Bulgarian winter resort Dora Yankova. The state of the art substation will be the most modern in Bulgaria. It will guarantee the electricity supply of the 'Perelik' project and of Smolian, Pamporovo, Smolianski Lakes and the whole Southern Rhodopes region. Swiss company will enact the project in the 'Kriva reka' area.

The 'Perelik' project stipulates the construction of an airport close to Smolyan and a modern road from Plovdiv, the second largest city in Bulgaria.

The contractor expects the investment to be approx. 230 million Euro during the first stage of the project (covering the plateaus around the peak) and reach approx. 600 million Euro when the project reaches the lower parts of the mountain and the nearby villages.

The project will cover 2193 hectares of land and will be set from 1500 m – 2130 m above sea level in the Perelik Mountain above the town of Smolyan. It will cover the high plateaus around the Perelik and Kozuyatak peaks where there snow cover last 6 months out of the year. The project is designed in such a way as to include the nearby villages of Mugla, Gela, Stoykite and Shiroka Luka, thus increasing the number of accommodation facilities and the number of the local people engaged in the tourism sphere.

An airport, new roads and archeological projects will turn Smolyan into a tourist pearl

Interview by Shtiliyana Chakarova with the Mayor of Smolyan, Dora Yankova, Standart Daily, 11 December, 2006

An airport and new roads will attract investors, said the mayor Dora Yankova

Smolyan

- Mrs Yankova, what are the perspectives before Smolyan? Does the construction invasion of hotels in the Pamporovo resort, highlights higher standards for Smolyan itself?
- Our ambition is to transform Smolyan into attractive site for the small business. Thus we developed a project for modernization and development of industrial centre "North". The headquarters of some of the biggest companies in the municipal are based there. However we need to modernize the road infrastructure and the other communications. We want to project other connections that will take the freight trucks straight from the factories to the republic road- from the exit of the town to Pamporovo. The contemporary industrial zone foresees a small civil airport, new opportunities for connections with the inner parts of the country.

- Will there be any opportunities for other companies to construct, production centres in the "North" zone? It is known that the terrains and parcels in town are more than scarce.
- This is one of the main goals - to create more opportunities for the small business. We will develop and modernize the "North" zone by regulating the land plots. We will create sites for industrial manufacture. The town has three main exits and the zone will be directly connected with them and the civil airport as well. We will create a modern economic centre, but we have to use all of the resources we have.

- How is the sport- tourism centre - "Perelik" developing? When is the actual start of the construction works expected?
- By the end of the year the contract with the investor and companies that won the competition with their projects for the centre will be signed. It will be unique and will give opportunities for all year round tourism with modern sport equipment and over 80 km ski slopes, golf courses and etc. The great advantage of this centre is the huge construction works will be avoided. It will protect the wild beauty of the nature and mountain and the tourist will receive first class conditions for sport and recreation. The hotel base will be in Smolyan and the nearby situated centres Raykovski livadi and Smolyan lakes. Minimum 12 thousand beds are needed to welcome the tourists.

- One of the most sensitive questions for the Smolyan municipal is roads. Many of them are in a miserable condition and cannot accept the increasing traffic. How is the town going to handle this problem?
- The project for a cable car from Smolyan to Pamporovo will soon become reality. This idea exists from many years, but the project is very expensive and until the present moment it was just a dream. Serous investors are already studying the two concepts for the "cable road". The tendencies are planning it to start together with the development of the resort base Raykovski livadi, which at the present moment is being constructed by small hotels, villas and mini complexes. The lift will considerably ease the traffic and will decide the problem with the parking in the resort. The equipment is estimated to cost 25 million euro.

Smolyan Smolyan Smolyan

- The countries with developed tourism earn a lot from their historical sightseeing. What is Smolyan municipal doing for the local historical monuments?
- My dream was to transform Smolyan the number one municipal in the tourism industry, and I am sure that this will soon be a fact. Very soon it will become the pearl of Bulgarian tourism. Just a few days ago we received finance for the "Momchilova fortress- myth and reality" project. The archeological excavations of the fortress of Momchil unak (hero) will turn into exclusive tourism attraction. This site with historical significance is just 15 km east of Smolyan. Light effects and lazar connections with the Kale will send tourists back to the medieval times and the legendary Momchil unak (hero).

- Are Smolyan producers and enterprisers ready for the entrance in the European Union?
- Yes we are proud to announce that Smolyan can introduce popular producers with European certificates. The best "Investor of the year", a prize that we established in 2004 will be prized on this year's Christmas ball. Two of the prizes are in the trade sphere and three of them will be given for the tourism business, which has constructed new and modern hotels in town. The investments are estimated to around 1 million to 2,5 million BGN. The newly opened companies are corresponding to all European standards and quality requirements.

Pearl Property Opens Real Estate Office in Ski Resort

29 January, 2007

Pamporovo, Bulgaria - Pearl Property has announced the opening of a new office wholly-owned by Pearl Property BG.

"Our goal is not to become another brokerage," said office manager Karman. "We want to be the clearinghouse for all the top properties in Pamporovo and Sofia, and work with only the best developers on exciting opportunities arising from the new investments and funding in the area."

The Super Perelik Project is in the beginning development phase of a newly-approved master plan for the Pamporovo area. After hosting a series of meetings with local community members and planners, the Perelik Project received approvals in 2006 for a new expansion that will guide the development of the village and mountain amenities over the next decade. The new Super Perelik project encompasses 55kms of ski runs, snow guns, 25 ski lifts as well as recreation, sports and entertainment taht will encourage year round tourism.

"The mayor of Smolyan is committed to developing the new project in a way that supports their winter and summer operations," said Amanda, MD of Pearl property,. "Our developments will continue to fund improvements across the resort and improve the standard of builds. Pearl Lodge has inovative building standards which surpass U.K. requirements, we may be nominated for an award in Bulgaria."

Pearl Property is currently offering units in Elite just 50 metres form the main lift, as well as a new project in Borovets which is already completed and comes fully furnished.

The new office is located next to the Pamporovo Palace in Pamaporovo Village and is managed by Karman and is open daily from 9 a.m. to 8 p.m

Bulgaria in Top Three Overseas Mortgage Distributors by 2020

1 February, 2007

The other two countries are Spain and France. The three countries look like being the hotspots of the future in the European mortgage market, the study showed.

The Broker World in 2020 study reveals that two-thirds of brokers (68%) think they will do more business in the overseas mortgage market in the future. Nine out of ten (90%) of them think Europe will see the biggest impact and nearly half (45%) expect to expand into Europe by 2020.

"The appearance of Bulgaria as a booming property market is interesting as I would class this as an \'emerging\' country, compared to the more established property markets of Spain and France. House prices remain relatively cheap for Brits, and joining the European Union should make the prospects for this area even more attractive", said Mehrdad Yousefi, head of Intermediary Mortgages at Alliance & Leicester.

The research also reveals that brokers expect to form more strategic partnerships with lenders which will lead to more consolidation in the broker market and also to lower profitability for brokers by the year 2020. ( www.novinite.com )

First Class Investor certificate to local company Sports and Tourism Centre Perelik

1 February, 2007

The Invest Bulgaria Agency issued Friday a First Class Investor certificate to local company Sports and Tourism Centre Perelik for its investment project of the same name.

Under the large scale project, the investor will deploy facilities for winter and summer tourism and will upgrade the infrastructure in the city of Smolyan and the villages of Stoikite, Gela, Solishta, Stikal and Mugla, all in the Rhodope Mountains, South-western Bulgaria.

The resort development will feature ski runs with a combined length of around 55 km, snow canons, 24 ski lifts, shelters and ski rentals, roofed parking lots as well as accommodation and leisure facilities and areas for recreation activities as varied as tennis, swimming, caving, trekking and mountain-biking.

A golf course and a congress hall will be added at a later stage of the project.

Invest Bulgaria chief noted the need for government investment in the resort access roads, especially the road link with the south-lying Greece.

The project, backed by local and international financial institutions, envisages capital expenses to the amount of 255 million euros. Investment in the first 3 years will total 94 million euros. The investor is ready to kick off the project this fall. (www.dnevnik.bg)

BULGARIA OFFERS LOWEST PROPERTY PRICES IN EUROPE

1 February, 2007

UK citizens were keener than ever on buying property abroad, The Independent said. They were attracted to the "prospect of their own place in the sun and an easy way of making money."

Nearly 800,000 British families had purchased a second home abroad, marking an increase of 45 per cent since 2004.

People liked Bulgaria for it's proximity to their country, warm climate and skiing opportunities in the winter.

Bulgaria was believed to offer the lowest property prices in Europe. "Additionally, it would benefit from joining the EU next year, with low-cost airlines expected to expand routes," The Independent said.

Bulgaria named top property hotspot for British investors

1 February, 2007

Bulgaria, Cyprus, Central Portugal, America and France have been named top property hotspots for British investors looking to buy abroad in 2007. Spain, however, should be avoided, a leading foreign currency exchange said.

FCExchange, a company that buys currency at commercial rates, not available to individual purchasers, says the current low prices in Bulgaria will continue to be the main attraction for investors.

"The investment opportunities in Bulgaria are as a result of extensive World Bank funding, which has allowed dramatic improvements to Bulgaria's infrastructure and tourism industry, transforming it from its former Communist days," says Nick Fullerton, Director of FC Exchange.

"We have based our 2007 predictions on our industry expertise and experience of spotting and interpreting patterns and trends," Nick Fullerton said.

"The countries FC Exchange have cited as hot spots are the ones where buyers are most likely to see good returns for their money. We have taken into consideration individual economies - the strength of each currency and the supply and demand that is already present in each market, which always affects prices and availability."

The biggest surprise in the company's forecasts for next year is Spain. A favourite of British buyers for years, the country is rapidly losing its appeal due to inflated property prices and bogus planning permissions. www.novinite.com

13% of Britons Eye Property Purchase in Bulgaria, Romania

1 February, 2007

One in seven Britons is considering purchasing property in Bulgaria or Romania, following the countries' EU accession at the beginning of this year, according to a new survey.

The number of foreign visitors to Bulgaria went up by 8.3% last year, bringing the total in 2006 to 1.5 million, while visitors to Romania went up from 800,000 in 2000 to 1.4 million in 2004.

"Based on the past history of other Eastern bloc countries joining the EU, where property prices have risen significantly these markets look set to become strong areas for capital growth." www.novinite.com

Budget carriers increase flights to Bulgaria

1 February, 2007

Low cost carrier Wizz Air Monday announced it will add new destinations to and from Bulgaria with its summer flight timetable. Starting in June, Wizz Air will fly from Bulgarian coastal city Burgas to Budapest, Katowice and Warsaw. Flights to Budapest will be available from another Bulgarian coastal city, Varna. At the moment, Wizz Air flies only to London from Burgas, a route serviced by rivals Bulgaria Air, Hemus Air and British Airways. The carrier expects to fly 150,000 passengers to and from Bulgaria in 2007.

Budget carrier Sky Europe recently said it was launching a Mon-Sat Sofia-Vienna route from March 26. Sky Europe marketing and sales director Krasimir Tanev expects the share of no-frills carriers of Bulgaria's aviation market to increase from 7-8% at present to 20% by the end of 2007.

Ryan Air is expected to open this year routes from Plovdiv, Bulgaria's second biggest city, to Britain, Spain and Germany.

Italy's Myair and German

New 3km 6-seat lift will connect Pamporovo ski resort and Stoykite village

1 February, 2007

New 3km 6-seat lift will connect Pamporovo ski resort and Stoykite village. The lift will connect Snejanka peak to the near-by Stoykite village and will be constructed by Pamporovo AD, the company that manages the whole ski resort infrastructure. The lift will be 3km long and will be ready until December 1st 2007. There will be also 2 ski runs along the lift - 3,420 and 2,901 km long.

Looking for Bulgarian real estate, apartment sales OR off-plan sales near the black sea?

12 October, 2006

Article on Pearl Property

16 MILLION LEVA TO BE INVESTED IN BULGARIA'S RAILWAY INFRASTRUCTURE - TRANSPORT MINISTER

10 October, 2006

Further capital of 16 million leva had been made available for Bulgaria's railway infrastructure, Transport and Communications Minister Petar Moutafchiev said, as quoted by Focus news agency.

Moutafchiev said that the reforms and the measures introduced to Bulgaria's railway had proved ineffective. Nearly two-thirds of the railways in the country were in bad condition, Moutafchiev said. The poor state of the infrastructure had led to a number of railway accidents in the past few months.

Eighteen million leva had been invested in repairing passenger coaches, Moutafchiev said, as quoted by Focus.

Another programme to repair cargo carriages, worth 41 million leva, would also be launched, he said.

Bulgaria railways' main priority in the next few years was to speed up transportation, Moutafchiev said.

BULGARIA TO UTILISE EU FUNDS BETTER

9 October, 2006

Bulgaria's ambition was to utilise the EU funds better than the countries that entered the EU in 2004, Finance Minister Plamen Oresharski said, as quoted by Bulgarian news agency BTA.

Bulgaria had to learn from the mistakes of the others, he said.

Bulgarian Industrial Association (BIA) chairman Bozhidar Danev said that the average rate of EU funds utilised by the new EU members was, on average, less than 40 per cent of what they received.

Oresharski also said that the Government would provide 15 per cent co-financing from the state budget in the first three years of Bulgaria's EU membership.

Bulgaria negotiated with the European Bank for Reconstruction and Development (EBRD) for the creation of joint fund for financing project under the EU cohesion and structural funds, he said, as quoted by BTA.

Bulgaria will also receive 700 million euro a year from the European Investment Bank.

EVN OFFERS 32.1 MILLION EURO FOR HEATING COMPANY IN BULGARIA

9 October, 2006

Austrian company AVN has offered 32.1 million euro for 100 per cent of the Plovdiv heating company Toplofikatsia Plovdiv, Darik Radio reported.

It was the highest price offered in the tender. The other participant in the tender was France's Dalkia International, which offered 25 million euro, Darik said.

If EVN's documents were in order, the company would be the next owner of Toplofikatsia Plovdiv.

EVN already owns the electricity companies in Plovdiv and Stara Zagora.

Bulgaria's Privatisation Agency would announce the name of the winner in the tender within a week, Darik said.

Buying Toploficatsia Plovdiv would make EVN a monopoly within the energy market in the region, Darik said.

BULGARIA READY TO BE EXTERNAL EU BORDER

9 October, 2006

Bulgaria was ready to be EU's external economic border, Bourgas customs director Dimcho Kiryazov said, as quoted by Bulgarian news agency BTA.

Bulgaria's customs legislation was "completely synchronised" with Europe's, he said.

Bourgas customs would be the only air, water and land customs office in Bulgaria to be at EU boundaries when Bulgaria enters the union, BTA said.

Kiryazov also said that success of Bulgarian custom officers in the fight against drug dealing and smuggling proved that Bulgaria was ready to meet the challenge.

The Bourgas customs directorate brought more than 1.3 billion leva to the state budget in 2006, BTA said.

BULGARIA'S EU MEMBERSHIP TO BE USEFUL FOR THE UNION- KOURKOULAS

4 October, 2006

Head of the European Commission (EC) delegation to Bulgaria Dimitris Korkoulas said that he was convinced Bulgaria's EU membership would be useful for the union.

Bulgaria would turn into a model for the other Southeast European countries, Kourkoulas said as quoted by Focus news agency.

Bulgaria's experience and relations with its neighbouring countries would strengthen EU's policy in the region, he said.

Kourkoulas also said that Bulgaria's EU entry would have long-term geopolitical effect.

Bulgaria's President Georgi Purvanov presented Kourkoulas with Stara Plania First Order Medal, the highest order in Bulgaria, Focus said.

BULGARIA'S PARLIAMENT TO WORK FOR EU STABILITY

27 September, 2006

The main goal of Bulgaria's National Assembly after Bulgaria's EU entry on January 1 2007 would be to work for EU stability and strengthening, as well as for improving Bulgarians' standard of leaving, a Parliament declaration said.

The Parliament accepted the declaration with convincing majority. Only four ultra-nacionalist MPs voted against the declaration, Darik Radio reported.

The MPs declared their readiness to keep the current pace of work in the fields of judicial reform, agriculture and fight against corruption and organised crime.

The ruling coalition representatives said that the former two cabinets contributed to Bulgaria's readiness for the EU entry, Darik said.

Democrates for Strong Bulgaria (DSB) leader Ivan Kostov said that Bulgaria's EU membership was not full-fledged because Bulgaria was going to be the poorest EU member.

Union of Democratic Forces (UDF) leader Petar Stoyanov said that he was satisified with Bulgaria's EU membership, but UDF would be critical of the Cabinet's work.

EC REQUIREMENTS FOR BULGARIA NOTHING UNUSUAL - KOUNEVA

27 September, 2006

The requirements that the European Commission (EC) had concerning Bulgaria and Romania's EU entry were something normal, European Integration Minister Meglena Kouneva said.

Her statement came following the presentation of the EC report on Bulgaria's readiness to join the EU. Bulgaria was going to become EU member on January 1 2007 without the introduction of safeguard clauses but under strict monitoring.

EC has been more critical when dealing with some areas during all previous enlargmenets, Kouneva told Bulgarian National Television. During the current enlargement stage the situation was the same, said she.

What was left for Bulgaria was to complete the reforms in its justice and home affairs sector Kouneva said.

EC's co-operation was very important for Bulgaria, so that it could present a report on its progress in this sector in March 2007, Kouneva said.

EC REPORT NOTES BULGARIA'S PROGRESS AND RECOMMENDS FURTHER REFORMS

27 September, 2006

President Georgi Purvanov and former prime minister Simeon Saxe-Coburg signing the accession treaty

The European Commission report on Bulgaria's readiness to become EU member confirmed January 1 2007 as the country's EU entry date.

Both Bulgaria and Romania experienced major transformation over the past year, especially between the issuing of the two EC reports in May and September European Commission president Jose Manuel Barroso said.

The EC report said that Bulgaria has achieved success in reforming its justice system. "Rules have been introduced establishing objective procedures for the appointment and evaluation of magistrates. Pre-trial proceedings have been improved by the introduction of a fast-track procedure," the report said.

Fight against corruption also saw improvements, the report said. Laws on political party funding and property declaration regulations for officials and administrators furthered transparency, the report said.

Legislation dealing with money laundering was almost completely synchronised with European requirements but needed to be put into effect.

Bulgaria also achieved progress in the areas of agriculture, consumer and health protection, social policy and employment.

Further progress was needed in a number of areas including social inclusion, anti-discrimination policies, public health, nuclear energy, environment and future management and control over the distribution of EU structural funds.

Bulgaria also needed to adopt a set of constitution amendments guaranteeing the independence of the judiciary. The country also needed to provide more measures countering corruption and organised crime.

"Bulgaria and Romania have made considerable efforts to complete their preparations for EU membership since the commission issued its last report in May. Bulgaria and Romania are sufficiently prepared to meet the political, economic and acquis criteria by 1 January 2007," the report said.

EC was going to strictly examine the progress in these areas and if such was missing, the commission was going to request the introduction of safeguard clauses.

Pearl Property at Property Investment Exhibition in Dublin, Ireland

26 September, 2006

Property Exhibition in Dublin Ireland

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Jets to be registered

20 August, 2006

The Bourgas regional committee on life guarding is to propose the formation of a register that would control the jet skis rented out by beach concessionaires. The measure is to be taken because of frequent accidents at the seaside. More than 20 tourists have been injured since the beginning of the summer season. At present, there are no jet ski regulations or demands for any qualifications or permits by the sea administration. There are special corridors in the water away from swimming areas for which most concessionaires know the conditions, and so they may hire out the water facilities. The large number of accidents shows that requirements are not kept to and sanctions are not envisaged by the law.

SKAT opens branch

20 August, 2006

Bourgas-based national cable television Skat TV opened its first private television centre in the country in Primorsko, south-eastern Bulgaria, on July 29. Its main focus will be on tourism development mainly on the Black Sea coast. Skat TV's television centre has its own studio complex from where it will broadcast programmes for Primorsko and Tsarevo, south-eastern Bulgaria. The station's short-term plans include extending the programmes to Malko Tournovo, also in south-eastern Bulgaria. The number of TV viewers on Bulgaria's southern coastline, tourists included, currently exceeds 170 000 people. Skat TV broadcast its pilot news programme on July 29. For the time being, the programme will be broadcast once a week.

IMF approves Bulgaria's performance

14 August, 2006

The executive board of the International Monetary Fund (IMF) has completed the third review of the Bulgarian Government's performance under the economic and financial reforms programme under the precautionary stand-by arrangement with the IMF, the Finance Ministry said on August 3.

The agreement, which was extended by six months, is Bulgaria's last and will play the role of a bridge to EU accession.

On the whole, the Government's economic programme, based on a prudent fiscal policy, credit growth restrictions and structural reforms boosting competitiveness, aims to ensure a stable economic and political framework and to prepare Bulgaria to a large extent for EU accession from January 2007.

By making this positive decision, the board highly commended the Government's policy leading to macroeconomic stability through a prudent fiscal policy and continued structural reforms.

Statements made at the board meeting noted that despite increased external challenges and risks, Bulgaria had made further progress in strengthening the principles of a market-oriented economy and had carried out considerable financial and economic reforms clearly directed to European integration.

The executive board expressed confidence that the progress made under the programme sent positive signals to the international economic elite and guaranteed that Bulgaria would further maintain its macroeconomic stability.

The IMF is preparing to withdraw from the active monitoring of Bulgaria's macroeconomic stability. This process however, will occur over the next eight months due to an agreement reached between the IMF and the Cabinet that will lead to a six-month extension of Bulgaria's accord with the fund, starting from October 2006.

The current stand-by agreement ends in September, leaving a three-month gap till Bulgaria's expected entry to the EU in January 2007, providing possibilities for macroeconomic insecurity and unclear fiscal policy.

Since 1997, Bulgaria has operated under an IMF-advised currency board system, a strict straitjacket that deprives the central bank from its monetary policy functions and pegs the exchange rate of the Bulgarian lev to the euro, sheltering the currency from foreign exchange volatilities.

Effective implementation of the six-month extended arrangement will continue in the first three months of the extension period, until the end of 2006, and the next three months will be a time for drawing conclusions and for the IMF executive board to compile a report on the implementation of the programme for Bulgaria. The country is not receiving any financing from the IMF under the current arrangement.

Bulgaria's economic growth projection improved

14 August, 2006

Bulgaria's economic growth is expected to exceed 5.3 percent in 2006, according to forecasts released on August 3 by the independent Centre for Economic Development (CED).

The Government earlier made a forecast that Bulgaria's gross domestic product (GDP) will grow by a real 5.3 per cent in 2006. In the first three months of 2006, the Bulgarian economy registered real growth of 5.6 per cent.

"The dynamics of the short-term indicators give us grounds to project that 2006 annual economic growth will be higher than the projected value of 5.3 per cent," CED said in its report.

Services are again the main driver of growth, while industry and construction register a slowdown. No change is observed in the development of agriculture and stagnation in this sector continues.

Unemployment registers a stable downward trend and investments in equity are up for a third quarter in a row, while growth in final consumption is more moderate. These indicators give grounds for optimism.

On the other hand, the current account deficit on the balance of payments is steadily up, accounting for 7.3 per cent of GDP in the period January-May 2006, or up 73 per cent on the deficit for the same period of last year.

Foreign direct investments cover only half of the trade deficit. Exports, however, show a trend of higher increase against imports, which is expected to persist. If foreign investments preserve their sustained growth, as anticipated, the negative economic effects of the increasing current account deficit on the balance of payments would not be registered.

From the beginning of 2006 until June, consumer prices were up 2.9 per cent and were not expected to increase their levels in the summer months, owing to a seasonal decline in food prices that account for a significant relative share of the consumer basket.

Overall, the financial sector registers growth and remains relatively stable.

At the same time, some negative trends are observed. The first concerns the growing credit expansion of commercial banks, which has a negative effect on economic stability and is also a factor for the current account deficit. On the other hand, credit expansion contributes to a jump in the short-term foreign indebtedness of banks and, respectively, of the whole economy. According to CED, the capital market registered record-breaking turnover values and sustainable growth in indexes. It is, however, still dominated by incidental block transactions, and not by sustainable trade on the regulated market, the centre's experts found.

Development of public finance is characterised by persistence of major trends established in previous periods. Among these are: the increase in the actual quota of reallocation through the budget and the strengthened role of the state in the Bulgarian economy.

Draft changes of tax legislation contain some good elements but fail again to be structured into an economically sound system.

As regards the individual sectors, development of construction and real estate services has been most dynamic. Transport, energy sector and agriculture register stagnation or decline. The public administration and the business are mounting efforts in the preparation for European Union membership, in particular in the implementation of environmental standards and the absorption of structural funds, CED said.

Four to bid for Bulgaria Air

14 August, 2006

Four to bid for Bulgaria Air

Privately owned Greek carrier Aegean Airlines and three other companies are vying to bid in a tender for the sale of flag carrier Bulgaria Air.

The Privatisation Agency announced this (PA) on August 3.

"Four companies have submitted documents in line with the pre-qualification requirements in the tender for the sale of 30 159 shares, or nearly 99.99 per cent of the capital of Bulgaria Air," the PA said in a statement on its website.

Along with Aegean Airlines, US-based investment fund York Capital Management, Bulgarian-registered company Air One-Bulgaria and Bulgaria's Balkan Hemus Group, owner of air carrier Hemus Air, have filed documents in the tender, the agency said.

Austrian Airlines, UK asset management and aviation consultancy Trans Atlantic Aviation and Italy's second-largest airline Air One, which also bought tender documents last month, have withdrawn from the race.

The PA was expected to make a short-list of bidders that would be invited to place non-binding offers by August 17.

Bulgaria launched a tender for the sale of Bulgaria Air in June, looking for a strategic or a financial investor to secure the company's competitiveness after the country's European Union entry, scheduled for 2007.

Bulgaria Air's pre-tax profit dropped last year by 71 per cent to 500 000 leva.

The national air carrier accounts for 30 per cent of the air travel tickets sold in Bulgaria and for about 25 per cent of the revenue from ticket sales.

Bulgaria Air succeeded the country's flag carrier Balkan Airlines, which was declared bankrupt in 2002, after a nearly two-year struggle to repay debts totalling about $100 million.

Visa, work rules in Bulgaria change

14 August, 2006

Entering and working in Bulgaria is to become easier for foreigners, especially those from European Union countries, following a series of changes to regulations and draft legislation approved by the Cabinet.

From September 1, nationals of a number of countries will be allowed to enter Bulgaria without visas and stay for up to 90 days within six months, the Cabinet decided on August 3.

The countries are the United States, United Kingdom, Australia, Canada, New Zealand, Costa Rica, Guatemala, Honduras, Mexico, Nicaragua, Panama and Salvador. The visa-free entry and stay rules will also apply to nationals of Guatemala, Honduras, Nicaragua and Salvador with valid diplomatic or service passports.

On the same day, the Cabinet approved an agreement with Israel whereby citizens of both countries will be able to enter the other country without a visa and stay for 90 days within a six-month period. However, if a visa will be required if the person intends working. Approving amendments to the visa agreement with Turkey, the Cabinet agreed to a general rule of issuing single or multiple transit visas for stays of 90 days within six months. This is a tripling of the allowable period from a previous 30 days.

At the end of July, the rules for admission of European Union citizens were changed, providing for visa-free admission for EU citizens of up to three months, on condition that a visitor has a valid passport from an EU country or an EU country identity document. The change will take effect when Bulgaria joins the EU.

EU citizens wanting to stay longer will have to apply for permission. Conditions for getting permission include clearance from the Bulgarian police, having sufficient money to support themselves, and where relevant, showing that they are enrolled at a legitimate educational institution.

In May, the Cabinet approved a package of amendments to legislation on the employment of foreigners in Bulgaria.

The new regulations make a distinction between employees from EU member states and employees from "third states". The new provisions allow for the application of more favourable employment conditions for EU citizens, either those in effect in the country of residence, or those in effect in Bulgaria.

When Bulgaria joins the EU - an event provisionally scheduled for January 1 2007 - all labour restrictions on EU citizens will be dropped.

In June, Labour and Social Policy Minister Emilia Maslarova said that, as a result of foreign investments, there were already 52 000 foreigners employed in Bulgaria. These people had permanent residence status and included senior executives from large foreign companies, as well as trade representatives. By mid-2006, the Employment Agency had issued 1063 work permits to foreigners, a slightly higher figure than for the entire 2005.

Bulgaria's approach is more open than that of EU member states. According to an August 7 statement by European Integration Minister Meglena Kouneva, Bulgarians will get full labour rights in the 10 states that most recently joined the EU immediately on this country's accession to the EU. She said that, similarly, full labour rights would be granted immediately on EU accession in about six or seven of the remaining 15 member states. The UK, Ireland and Finland have said that they would open their labour markets to Bulgarians when the country joins the EU, while the rest are yet to decide.

Another indication of the number of foreigners in Bulgaria emerged with the release towards the end of July of a Migration Directorate report, saying that in 2005 a total of 12 318 foreigners were given permission for an extended stay of one year. This included 1152 UK citizens, the third largest group after people from Macedonia and from Turkey, and 473 Germans.

The number of foreigners granted permanent residence in 2005 was 3099. The number of UK citizens applying for permanent residence in 2005 was about 49 per cent higher than the previous year.

Draft legislation approved by the Cabinet at the end of July provides for a tougher line against attempts at illegal immigration, including through stricter visa control and the introduction of biometric passports.

Bulgaria also has been stepping up action against illegal employment of foreigners, especially in sectors where there is a high concentration of such illegal employment. In June, the executive director of the labour inspectorate, Totyu Mladenov, said that cases of illegal employment of foreigners were most often found at construction sites, in the clothing industry, and at restaurants and hotels.

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