Pearl Property News & Blog

600 British property owners in Pamporovo summoned to pay two-year backlog of taxes

7th July, 2010

About 600 British property owners have not paid their estate taxes in the Bulgarian resort town of Pamporovo for the past two years, Bulgarian news agency BTA said on July 1 2010.

According to Chepelare deputy mayor Georgi Pepelanov, the municipality has sent nearly 600 letters to debtors, addressed to the UK, in which the owners concerned are “kindly requested” to pay their taxes.

The municipality’s mailings cost 600 leva, as each letter costs about one lev, the report said.

Perhaps to defuse tension, Pepelanov said that the municipality is certain that this was not a deliberate evasion but merely a misunderstanding between the British owners and the companies managing their properties in Bulgaria.

However, the municipality is also owed a large sum from local hotels in the resort of Pamporovo.

According to the BTA, the sum owed by the British and the hotels amounts to 600 000 leva in total.

“Russians and Spanish nationals also have property here but they have paid taxes on time,” Pepelanov said.

So far, the municipality has only received about a third of the money owed to it by hotels in Pamporovo.

The Sofia Echo

Ryanair to launch flights to Bulgaria’s Plovdiv

1st June, 2010

One of Europe’s largest low-cost airlines, Ryanair, plans to start flying to and from Bulgaria’s second largest city of Plovdiv in September 2010, Bulgaria’s Deputy Economy and Tourism Minister Ivo Marinov was quoted as saying by Bulgarian-language media.

But to launch flights to Bulgaria, Ryanair asked for lower landing fees charged by the country’s airports, Marinov said during a discussion in Parliament on the topic of Bulgarian tourism. It was a demand that the Cabinet was now considering for the less-used Plovdiv airport, at least for a period of two years.

Plovdiv would be Ryanair’s first destination in Bulgaria.

Bulgarian-language Dnevnik daily also quoted Ivelina Grozdeva of the Bulgarian Hotel and Restaurant Association as saying that Ryanair should be allowed to also operate flights to Sofia, Bourgas and Varna.

The Sofia Echo

Bulgaria Govt Fears Brussels Wrath as 2009 Deficit Doubles

9th April, 2010

Bulgarian PM Borisov (standing) and Finance Minister Djankov during Friday's news conference during which they made staggering revelations that the country's budget deficit doubled in 2009. Photo by BGNES

Bulgaria’s 2009 budget deficit has doubled as a result of “hidden” contracts made by the Stanishev Cabinet, the Borisov government has announced.

Finance Minister Simeon Djankov stated that the state budgets for 2008 and 2009 will have to be revised and recalculated because of the contracts in question made by the previous government that the Ministers of Boyko Borisov were not made aware of when they took over in July 2009.

“We are going to revise voluntarily the budgets for 2008 and 2009, according to our best estimates at the current moment – unless there are more surprises, of course, that might be hidden somewhere else in the drawers of the various ministries. Thus, with the hidden contracts of the previous government that have recently emerged, our 2009 budget deficit almost doubles – from 1,9% to 3,7%,” Djankov declared at a joint news conference together with Prime Minister Boyko Borisov and Economy Minister Traicho Traikov.

Djankov emphasized the fact with the emergence of the “surprising” new deficit, Bulgaria no longer meets the Eurozone criteria as its budget deficit is over 3%.

Djankov and Borisov revealed that they had notified the EU institutions about the 2009 “hyper deficit”, as they call it, on Thursday afternoon.

“Unwillingly, our government has become part of the lies that our predecessors had been telling the EU institutions in Brussels. We have even lied involuntarily when we applied to the ERM II as well. We were telling the Eurozone we are ready without knowing that the previous government had laid this trap for us,” PM Borisov said.

“This doubling of the 2009 budget deficit means at least two things. First, it is very likely that now that our European partners know about these results, Bulgaria may face infringement procedures because it actually had a hyper-deficit in 2009. Every single time that the Bulgarian Socialist Party has been in power, Bulgaria has gotten into financial trouble. This happened after the Lukanov government, after the Videnov government, and now after the government of Sergey Stanishev,” Finance Minister Djankov stated.

He emphasized that the sanctions that Bulgaria might have to face on part of Brussels most likely would entail regular monitoring of the country’s finances, and respective reports every six months, which means that Bulgaria will not be able to apply to join the ERM II in 2010 as Djankov originally planned.

The Finance Minister pointed out that because of the unforeseen expenses the government will have to make under the “hidden” public procurement contracts, it will have to revise the adopted anti-crisis package of 60 measures by cutting state spending even further.

Sofia News Agency (novinite.com)

Bulgaria Gives up Euro Bid on Hidden Deficit

9th April, 2010

Bulgaria's center-right government has blamed their Socialist predecessors for the dashed hopes for entry into ERM II in 2010. Photo by BGNES

Bulgaria’s center-right government abandoned plans on Friday to apply to join the bloc’s exchange-rate mechanism, the so-called Eurozone waiting room, over a larger than expected 2009 deficit caused by unaccounted procurement deals, signed by the previous Socialist-led cabinet.

“It would be insolent to apply for ERM II and the eurozone given the high levels of the deficit”, Prime Minister Boyko Borisov told a news conference. “We have in fact lied to our (EU) colleagues about our readiness for the euro zone being unaware of this trap.”

Bulgaria’s Finance Minister Simeon Djankov told the same press conference that the country’s aspirations to join ERM II will not be rewarded this year.

“Bulgaria’s hidden budget deficit has ruined its dreams of joining the eurozone due to financially unaccounted procurement deals, which increased the 2009 gap to 3.7% of gross domestic product (GDP) from an initial 1.9%,” Minister Djankov said.

He announced that the budgets for 2008 and 2009 will be revised after annexes to a total of 150 contracts incurred losses to the budget worth BGN 2,15 M.

“We were expected to be a fiscal model for the other European countries together with Estonia, now I will feel only shame in Madrid ( at the meeting of the EU finance ministers next week) when I tell my colleagues what has happened,” Djankov fumed.

“Europe does not make a distinction between current and former governments. I represent Bulgaria and now it is a shame,” he added.

The finance minister stressed that the revision of the budgets from the last two years will not reflect on the budget for 2010 and the government will do its best to keep the budget deficit under 3% in line with the Maastricht criteria.

“This year, there is no risk for the fiscal stability, the currency board and the banking system thanks to our tight fiscal policy,” Djankov said.

Joining the exchange-rate mechanism was assigned top priority for this year by the new Bulgarian center-right government, which was the reason why it stuck to tight financial policy at the end of 2009 and delayed payments to businesses in a bid to keep low the budget deficit.

Minister Djankov, a World Bank economist, hoped to offset a possible reluctance to admit Bulgaria into the ERM, stemming from the global crisis, by garnishing the application with a targeted balanced 2010 budget, small 2009 deficit and laws overhauling the inefficient health-care and social-security systems.

Entry into the so-called Eurozone waiting room would have brought Bulgaria closer to the umbrella of the euro region and the protection of the European Central Bank and was conditional on whether the new government would succeed to restore Brussels trust and the budget deficit that the country has posted.

Countries must be members of ERM II for two years before they can formally join the eurozone.

Bulgaria so far believed that it could be ready for euro entry by 2013.

Sofia News Agency (novinite.com)

Budget air carrier Ryanair is contemplating starting a direct link with Bulgaria’s second-largest city, Plovdiv.

30th March, 2010

In April 2010, company representatives are scheduled to arrive to make a final decision on the matter, according to Doichin Angelov, director of Plovdiv airport, according to a media statement on March 24 2010.

The Ryanair delegation is expected to arrive in Bulgaria on April 6 and will remain in the country until April 15.

“They will meet with the Transport Minister Alexander Tsvetkov and subsequently will travel to Plovdiv, where we are to finalise our potential agreement with them,” Angelov said in the statement.

Ryanair has been showing interest in Bulgaria for several years. But as airport taxes are poised to become three times cheaper than those at Sofia as of April 1, the reality for the line to be launched becomes ever more real.

A forum between the Plovdiv municipal administration and the Bulgarian-Catalan chamber of commerce BGCAT was held in Plovdiv on March 23.

Meanwhile, Sofia Airport said that Danish budget carrier Cimber Sterling will link Copenhagen and Sofia and flights will be conducted biweekly, on Thursdays and Sundays, Dnevnik reported. Currently there is no direct flight to the Danish capital. The flights will start on March 28.

Bulgaria Air used to fly Copenhagen, but the service was withdrawn in 2006.

Ski season in Bulgaria’s southernmost resort of Pamporovo

18th January, 2010

The ski season in Bulgaria’s southernmost resort of Pamporovo in the Rhodope Mountains is due to open on December 19 2009, a media statement said.

The newest attraction at the resort is floodlights installed at the Snejanka 3 slope as well as the Stanata (The Wall), Pamporovo’s most demanding slope. The media statement also says the complex is equipped with a new dental and first aid medical centre, Medicus Alfa, which will operate 24-hours.

The resort currently has more than 19km of slopes, 95 per cent of which can be serviced by snow cannons if needed. A brand new six-seater lift has also been installed as well as a recreational park and an “extreme park” all within the premises.

Finally, the report’s authorities believe that with the inauguration of the new border crossing point between Bulgaria and Greece at Zlatograd, many people in northern Greece will visit the resort, thus boosting the local economy.

Greek tour operators have been invited to attend the official inauguration ceremony on December 19. Tourists are also expected to flock from Serbia, Macedonia and Montenegro after the visa regime for the aforementioned countries is officially dropped the same day.

Sofia echo reported today

18th January, 2010

A new weekly Moscow – Plovdiv – Moscow flight was inaugurated on December 25 2009.

The carrier is S7 Airlines, described in a report by Bulgarian news agency Focus as the second-largest airline in Russia after Aeroflot.

Flights will be once-weekly on Fridays.

The airline has several connecting flights to destinations in the Middle East, which could boost passenger flow to Plovdiv, Focus said.

An upgrade of Plovdiv Airport was completed in 2009 after an investment of about 40 million leva, but more funds will be required to revamp the airport completely.

The airport, frequently used by tourists headed for Pamporovo and other Rhodope destinations, is said to service about two million passengers a year.

Monday, 18 January 2010

18th January, 2010

Traffic at the Ilinden–Exohi border checkpoint between Bulgaria and Greece was open on the morning of January 18 2010, with private vehicles and buses allowed to pass but lorries were being stopped, Bulgarian daily Dnevnik said.

The Greek farmers strike was scheduled to start at 11am on January 18 and the farmers duly sealed off the border, but only for lorries. According to Greek authorities, lorries queuing on the border would be allowed to trickle through between 3pm until 5pm. However, vehicles ferrying timber and dairy products would not be allowed to pass, Dnevnik said.

For the time being, the other three border crossing points between Bulgaria and Greece were operating normally, although it was uncertain for how long.

Bulgaria’s Interior Ministry and border police have warned Bulgarians not to travel to Greece unless “absolutely necessary”. Authorities say that any trips to Greece while the blockade is enforced are likely to result in “serious delays, traffic jams and substantial financial losses”.

Greek daily Kathimerini said that more farmers from Serres were expected to descend on the Promachonas crossing on the border with Bulgaria from January 18, and that wider protests could follow in coming days as farmers stepped up their demands. The blockades are expected to last at least five days.

14th Dec (Sofia echo reported the following)

18th January, 2010

THE Irish tourist with whom I was sharing lunch had a gleam of happy enthusiasm in her eye.

We were having lunch a short falling distance from the beginner’s slopes in Pamporovo, while her husband and my wife were off further up Snezhanka peak, skiing on slopes appropriate to their respective degrees of skill.

The Irish couple was from a town just south of the Northern Irish border. For her husband, it was the latest of many visits he had made in the past 20 years. It was her fourth, and she and two of her small children were sharing a novice skiing class with me. She laughingly confessed it was not the first time that she was trying to learn to ski. This time was to prove no success either. She and the children did not turn up after lunch on day two, and after that I found myself by default in an individual class. Not a bad thing, although she and the little children had made good company for me; but we Africans need special attention in skiing classes, because we are just not used to this crunchy white stuff called snow.

Back to lunch, and back to the Irish. Of her husband, the tourist told me: “he just loves Bulgaria. And so do I”.

There were many accents like hers to be heard in Pamporovo in that week, cheering each other on down the slopes, keeping the bar people busy, and occasionally braving an attempt to haggle with Pamporovo’s taxi drivers.

All this past year I had followed with great interest the unfolding saga of Bulgaria’s tourist industry. The Sofia Echo takes the subject sufficiently seriously that we run a column on it every week. Of course, few Bulgarian newspapers of note had failed to record the reports published in foreign countries about tourism in Bulgaria.

Conventional wisdom has come down to a number of points. One is that Bulgaria’s tourism industry is ever-growing. Another is that a threat to it is that the country will not remain affordable, and related to this point is that the country will have to do a lot more than simply sell itself on the basis of being cheaper than other destinations. A further, and much-reported, issue has been that of “construction tourism” at seaside and winter resorts, with construction continuing during the respective high seasons, and alienating visitors.

Well yes, I had seen media reports of some controversy about construction continuing at Pamporovo, although during our daily commuting between our hotel and the slopes, I saw no evidence of it. Yes, Pamporovo is less “affordable” than it was when we first visited together four years ago.

Time for a few realities. The Irish tourist couple did not regard cost as any kind of factor. Before you rush to say that spending leva means nothing to wealthy Europeans, this is a couple composed of a husband who is a teacher, and a wife who broke off her career eight years ago to produce their three children – the youngest just 11 months ago.

What was it this couple enthused about? The atmosphere. The people – Bulgarians, themselves. As the tourist put it to me, “the hospitality, the warmth, the ability to have a good time, to put themselves out for us”.

I wish all the skeptics could have heard this conversation, including those who say that Bulgarians have learnt nothing about the service ethic.

Listening to her, I responded that the night before our conversation, I had seen BNT’s programme Dalekogled, which had featured an Irish expatriate saying that he had felt very much at home in the past four years here because, he believed, the Irish and Bulgarians had very much in common, at the level of the soul and in approach to life.

She agreed, and said she believed that was one of the reasons her husband had come back so often.

When I met him, I said to her husband that I was very glad to meet a “return tourist” because of concerns that people would come to the country only once, tick it off their list – or go home with bad word of mouth because of “construction tourism” or bad service – and never come back.

He laughed, his face red with the exertion of the slopes, and said he hoped to come back many, many times.

His wife did not feel in the least deprived by her continuing inadequacy at learning to ski.
“The apres-ski is the best thing, after all, isn’t it?”

The attractions of Pamporovo’s bars and restaurants were, it seems, one of the reasons that she and some of the other tourists removed themselves from the slopes at one stage or another. “Bulgarian wine is very good, but it goes down rather too easily. So I’m feeling a bit pale today. Still, I wish it were easier to get it in Ireland. The stuff they export really isn’t the best”.

I smiled when she asked me whether or not the country was in the European Union. Living every day with coverage of the issue of whether or not Bulgaria will deal adequately with major issues like judiciary reform and thus meet its January 2007 appointment, I found it refreshing to meet someone to whom it was not a real issue, and who had half an impression that Bulgaria already had achieved this Holy Grail of European respectability.

All around me foreign tourists, including one Western diplomat and his wife who were happily incognito, were having a good time, and it is correct to record my own impressions, those of someone who is now in his fourth year of living in Bulgaria. In a word: good. Rental of ski equipment, and the lessons, were not cheap but nor were they exorbitant. Service everywhere was decent. With the exception of New Year’s Day, machines cleaned the roads to keep them safe. There was much more signage in English (and in better English) than during my first visit four years ago.

And if I sound in a good mood, it is not that the people of Pamporovo slipped me a few leva to write something nice about them. It is because, with the very patient teaching and encouragement of a young lady called Biserka, and with a tumble or four, and a few stops to catch my breath, on New Year’s Day, I somehow made it down the green slope of Snezhanka. For a middle-aged African, that’s not bad, don’t you think? It’s enough to make me want to go back.

Greek border open

18th January, 2010

Bulgarian and Greek officials met on January 16 2010 to assess the situation as negotiations proceeded about planned border blockade protests by Greek farmers.

All Bulgarian – Greek border checkpoints, including the newly opened Zlatograd-Xanthi checkpoint, were operating normally on January 16, media reports said, after the previous day the Ilinden – Eksohi checkpoint was blockaded for 90 minutes.

People should avoid travelling to Greece, Bulgarian news agency Focus quoted deputy regional governor of Blagoevgrad Georgi Bahanov as saying after the meeting at Kulata border checkpoint with his counterpart deputy regional governor of Serres, Tomas Syambris, and a representative of the police Nikolas Rizos.

The Greek side offered an alternative route for drivers through Zlatarevo border checkpoint, Valandovo and Gevgeli.

Farmers have said that they would continue the protest for a further five days from January 18, but this depends on the outcome of negotiations. The farmers want to be paid 2009 subsidies that are in arrears, and have indicated that the strike could become indefinite until this happens.

Bulgaria said that bodies including the border police, Bulgarian Red Cross, emergency services and local authorities had been briefed on steps to take in the event of a sustained blockade and were co-ordinating their actions.

Bulgarian National Television (BNT) said that the January 16 meeting between the deputy governors of Blagoevgrad and Serres was held to discuss how to deal with traffic flow in the event of a further blockade.

Bulgaria was requesting clear rules on how traffic flow would work, not only for light vehicles but also for TIR lorries, BNT said.

Greek daily Kathimerini said that wider protests could follow in the days ahead as farmers stepped up their demands.

On January 15, about 120 tractors were used to close the national road near the Strymonas bridge in northern Greece. Motorists had to use a diversion which took them onto the old Thessaloniki-Kavala highway via Asprovalta. The same day, farmers from Kastoria also set up intermittent blocks on the road leading to the Albanian border.

Kathimerini said that more farmers from Serres were expected to descend on the Promachonas crossing on the border with Bulgaria from January 18.

On January 16, before the meeting between the Blagoevgrad and Serres officials started, Focus quoted Todor Georgiev, head of the regional customs office in Smolyan, as saying that Bulgarian motorists should check the situation before travelling to Greece.

This could be done at the Interior Ministry website, and people should check news websites as well, Georgiev said.

Bulgarian citizens travelling to Turkey were advised to use the Lesovo and Malko Tarnovo border checkpoints.

The alternatives to the Kapitan Andreevo – Kalotina border checkpoints are the crossings along the Bulgarian-Serbian border: Vrashka Chuka, Bregovo, Stezimirovtsi and Oltomantsi or to Romania via the Danube Bridge and to Macedonia via Gyueshevo crossing, Focus said.

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