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i s s u e 4 1J u n e – J u l y 2 0 0 3
A m e r i c a n C h a m b e r o f C o m m e r c e i n B u l g a r i a
h o m e p a g e : w w w . a m c h a m . b g e - m a i l : a m c h a m @a m c h a m . b g1 9 P a t r i a r c h E v t i m i i B l v d . , F l o o r 5 , A p t . 1 0 , S o f i a 1 0 0 0
Te l . : [ 3 5 9 2 ] 9 8 1 5 9 5 0 , F a x : [ 3 5 9 2 ] 9 8 0 4 2 0 6
Business Oppor tunities Arising from NATO Membership
Business Oppor tunities Arising from NATO Membership
a m c h a m n e w s
General Assembly Elected New Board of Directors Members 2
H.E. Avis Bohlen: Bulgaria is a Positive Story 2
Borislav T. Boyanov Elitsa TsanevaGeorge RandelovFriedrich Niemann 3
a m c h a m n e w s
The Oxford Business Group 5
AmCham Committees Cooperate with BIBA on Tax and Energy Legislation Proposals 5
a m c h a m e v e n t s
Business Opportunities Arise from Bulgaria’s NATO Membership 6
Gen. Kolev: Modernization will be Based on Long-Term Strategic Partnership 11
AmCham Independence Day Party: Sun, Fun, Rain and Prizes 12
m e m b e r n e w s
Postbank Reports 23% Increase of Total Assets for 2002 17
European Union Training Seminar for Southeast Europe 18
n e w m e m b e r s
IP Consulting Ltd. 19Urban 3000 Ltd.Alexandrov Ltd. 20Sherita M Ltd.Effekten Und Finanz – Bulgaria EADAhrend
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H.E. James Pardew, U.S. Ambassador to Bulgaria, Honorary Chairman . 3M (East) AG .AbC.R.O. . ABELA AIRPORT SERVICES LTD. . ABB (Asea Brown Boveri) . ACDI/VOCA .Abadjiev, Rouslan - Delaware Int’l . Abrotea Bulgaria AD . Acsior . ACT Soft Ltd. . AddressReal Estates . ADIS Ltd. . AES Corporation . AFA . AGS Bulgaria . AIG Insurance andReinsurance . AIG Life . AIMS Human Capital . Albena Joint Stock Company . AlexandrovLtd. . Ahrend . Allied Pickfords . American Bar Association(CEELI) . American BalkanConsulting . American Capital Services Corp . American College of Sofia . AmericanConstruction Products . American University in Bulgaria . AUBG - Elieff Center for Education .Amylum Bulgaria AD . Anglo-American School of Sofia . Anton Nikolov Preslavski . APISHristovich Ltd. . ARCO Group . AremisSoft . Aries Commerce . ASCO Ltd. . Associationof Bulgarian Broadcasters . AT Engineering Ltd. . Atlantic Club of Bulgaria . Austrian Airlines. AVIS . Balkan News Corporation . Barents Group Europe . Bayer Bulgaria . BG Radio .Baxter . Bodyguard-Fire-K Ltd. . Borislav Boyanov & Co . Bristol-Myers Squibb . BTC-NetLtd. . Bulgarian Post Bank . Bulgarian American Enterprise Fund . Bulgarian Charities AidFoundation. . Bulgarian Parcel Service - Representative of UPS . Business Data . BusinessLinks . Business Park Sofia Ltd. . Business to Business. Cable Bulgaria . CAIB – Bulinvest. Carana Corporation . Caresbac – Bulgaria . Carlson Wagonlit Travel . Center for theStudy of Democracy . CHS Bulgaria . Cilag AC – International . Citibank . City University. Cisco Systems Bulgaria . Clarina / Coca Cola . Coca – Cola Bulgaria . COLLIERS -Continental Properties . CombiTrans Bulgaria . Compass . ConsulTeam . Contex Drouzhba. Corporate Advisory Ltd. . Corstjens Worlwide Movers Group. . CPM International Ltd. . CrestaMarketing S.A. . Curtis / Balkan . Cyber Networks JSC . Dr. Benatov & Partners . Dr.Greenberg, Ellen . D. G. Jones & Partners . Deloitte & Touche . DeConi M&A . Delia, MichaelPeter . DHL International . DIMON Bulgaria EOOD . Djingov, Gouginski, Kjutchukov & Velitchkov. Don & Co. . Dow Europe S.A. . ECM – Bulgarian Post Privatization Fund . Effekten UndFinanz – Bulgaria EAD . Eli Lilly & Company . Elta Consult Ltd. . Emerson Process Management. Engineering Service-Sofia Ltd. . Entergy . Erato PLC. . Ernst & Young . EURO RSCG NewEurope Sofia . EXPO 2000 . Expo Team Ltd. . First Global Heath Corporation . First GlobalMarketing . Flying Cargo Bulgaria, Ltd. . Ford - Moto Pfohe . Force Delta Ltd. . FramfabBulgaria . GEO Car . General Electric International . Genmark Automation . Global One .Goleminov & Goleminov . Group 4 Securitas . Guinness UDV (CEA) . Haemimont - Smartcom. Hayhurst Berlad Robinson (HBR) . HEBROS Bank AD . Hewlett Packard Bulgaria . Heli AirServices . Hilton Sofia . Honeywell . Horizon Energy Development, Inc. . IBM Bulgaria .InfoGuard . ING Barings . Interamerican . International Commercial Bank . Interbrands Marketing& Distribution Inc. . Internet Securities . Interpartners Communications . Intransco - Bulgaria Ltd.. In Time Ltd. / Air Express Int’l . Institute for Sustainable Communities . IP Consulting Ltd. .Junior Achievement Bulgaria . Kolbis . KPMG Bulgaria . Kühne & Nagel . Kraft Foods .Lefkowitz, Kenneth M. . KRES Advertising Agency . Lexim Sofia Ltd. . Lindner Immobilien Bulgaria. Lirex . M3 Communications Group . Magnetic Heads Technologies . Maersk Bulgaria Ltd.. Marsh EOOD . Management Systems International . MBA Enterprise Corps . McDonald’sBulgaria . Microsoft . Miltech Ltd. . Monsanto Europe . Motorola Bulgaria EAD . MSD .NDB Informix . NDT Equipment Supplies Ltd. . Net Is Ltd. . Nestle-Sofia Ltd. . NET IS SAT .Nexcom Bulgaria . New I . Nokia Bulgaria EOOD . Norman – Art Consultants & Dealers . NovelCosult . Oracle Corporation . Pain D’or . Pfizer International Corporation . Pharmacia & UpJohn. Pioneer Semena . Popov Legal Office . PricewaterhouseCoopers . Prima Soft . Procter &Gamble . ProSoft . Protech . QBE International Insurance Ltd . Radisson SAS Grand Hotel .Regent Pacific . Rila Software Corporation . Rockwell Automation . RTC Mobikom . S&DChemicals Bulgaria Ltd. . S&T Bulgaria . Sante International . Scala Bulgaria . SEAF Trans-BalkanBulgaria Fund . Sector Bulgaria . Sheraton Sofia Hotel Balkan . Shering-Plough Central East-Bulgaria. Sherita M Ltd. . SmithKline Beecham . Sofia Echo Media Ltd . Stambouli Bulgaria . StudentCareers Advisory Center . Sun Spree Holidays . Swissair . Lowe Lintas Swing Communications .Technologica . TM Auto Ltd. - TOYOTA . TMF . TNT . Unimasters Logistics Ltd. . Unisys .United Consulting Ltd. . USAID Bulgarian Capital Markets Project . Urban 3000 Ltd. . US Meds. Via Expo . Vidima . Westinghouse Electric S.A. . Willi Betz – Balkan Star . Wrigley Bulgaria. WizCom . Wyeth Whitehall Trade . Xerox Bulgaria . Zlati Dinev Studio .
Editor-in-Chief
Vessel ina Dobrinova Design, Prepress & Printing
Milen Marchev
The AmCham Bulgaria Magazine reaches all members , decisionmakers in Bulgaria and in the U.S.A. ,
all AmChams around the world
The artic les in the AmCham Bulgaria Magazine show the opinion of the authors and do not necessarily reflect
the AmCham position.
I f you do not receive regular ly the AmCham Magazine or theAmCham Daily News electronic bulletin, please contact the
AmCham office in Sofia at tel . 981 59 50 or e-mail:[email protected]
Board of Directors of the American Chamber of Commerce in Bulgaria
President Kenneth Lefkowitz Individual Member
Vice President Stefan Dimitrov Allied Pickfords
Treasurer Dennis Fiehler Bulgarian American Enterprise Fund
Borislav Boyanov Borislav Boyanov & Co.Amnon Halper AshtromDavid Hampson US Meds – BulgariaJanet Heckman CITIBANKRoumen Mihailov 3M (East) AGFriedrich Niemann Hilton SofiaGeorgi Randelov IBM BulgariaMaria Shishkova AIMS Human CapitalElitsa Tsaneva Ideal Standard
Ex-Officio Member Reginald Miller US Commercial Attache
Executive Director Valentin Georgiev
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The AmCham General Assembly gathered June 3 to re-electnotable board members and elect new ones, to honor the for-mer President of the Chamber Philip Bay and meet with for-mer US Ambassador H.E. Avis Bohlen and the currentAmbassador H.E. James Pardew.
Kenneth M. Lefkowitz, Stefan Dimitrov, Maria Shishkova,Roumen Mihailov, and David Hampson were re-elected asBoard Members. Borislav Boyanov (Borislav Boyanov & Co.),Elitsa Tsaneva (Ideal Standard Bulgaria), Friedrich W.Niemann (Hilton Sofia), and Georgi Randelov (IBM Bulgaria)are the new members on the board.
Former AmCham President Philip Bay was honored in absen-tio with a plaque expressing the Chamber’s gratitude for hisoutstanding leadership and exceptional contribution to thebusiness community and dedicated service to AmChamBulgaria both as a Board Member and as President duringthe period March 1997 – March 2003.
The US Ambassador H.E. James Pardew greeted the GeneralAssembly and said he appreciated everyone’s attendanceand considered AmCham to be absolutely critical to his workin the country. “I want to be a key supporter of theAmCham,” he said. He thanked the members who share ded-ication and support the values promoted by the Chamber.
After H.E. Avis T. Bohlen addressed AmCham members withan overview of her personal analysis on Bulgaria’s progressin political, economic, and social development after herdeparture from the country, AmCham President Kenneth M.Lefkowitz took the stage to present a report on the activitiesof the Chamber since the previous assembly.
AmCham has succeeded to move forward with interesting andfruitful events in the first five months of the year, Lefkowitzsaid. They were organized with the active participation of themembers, with the outstanding support of the US Embassyand of the Ambassador personally, as well as of the SeniorCommercial Counselor Reginald Miller, he added.
He recaptured the events of the past months with a few words:events dedicated to regional cooperation, the development ofthe IT sector and its penetration in the state sector, etc.
Mr. Lefkowitz also informed members about the work of theseveral committees of the Chamber. The Finance Committeediscussed the financial status of the Chamber and its VAT reg-istration. The Public Affairs Committee had several discussionsdedicated to the Internal Revenue Code Section 911 (foreignearned income exclusion), lobbying, the US-Bulgarian treaty onavoidance of double taxation, and a whistle-blowing procedurein cooperation with the Bulgarian International BusinessAssociation (BIBA). The Business Development Committee dis-cussed ideas about business incubator, industry oriented sem-inars and the AmCham advertisement strategy.
General Assembly Elected New Board of Directors Members
H . E . A v i s B o h l e n :
Bulgaria is aFormer Ambassador to Bulgaria H.E. Avis Bohlen was the spe-cial guest at the General Assembly on June 3. She congratu-lated AmCham on its growth and achievements since her depar-ture and assessed Bulgaria’s progress as a positive story.Ms. Bohlen started by saying Bulgaria was doing pretty good asthis was the first question everyone asked her during her visit.She noted that her point of departure for this valuation is thetime she arrived in Bulgaria in the summer of 1996. “My mostvivid memory is from the fall and winter [of that year],” she saidand the changes that occurred then. According to Bohlen, Bulgaria had hit bottom at the time – polit-ically, economically and in terms of the attitude of the society.“I had never been in a country where there was such a feelingof absolute hopelessness,” she explained.The former ambassador shared her opinion that a lot of creditshould be given to then-president Petar Stoyanov and the gov-ernments of Stefan Sofianski and Ivan Kostov despite the mis-
The General Assembly on June 3 gathered the
majority of AmCham members to honor the
former President Philip Bay, meet with H.E.
Avis Bohlen and elect new board members.
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takes they made as they launched the process of economicreform that is continued now by the current government. Bohlen said that thanks to the foreign policy started then andstill followed, Bulgaria has achieved amazing things and a goodstanding in NATO and EU.A certain transition has been completed, Avis Bohlen said.Although there are still many problems out there, Bulgaria isvery well-posed to succeed its full transition.Bohlen noted that the positive economic growth has not reallyhad an impact on the lives of the average Bulgarian so far.“Many in the country still have not felt any increase in pros-perity,” she said. In addition to that, corruption remains a bigproblem that does not seem to be getting any better. It is urgentfor Bulgaria to reform its judiciary system, she added.Ms. Bohlen ended on a positive note saying that the young peo-ple are the hope for Bulgaria as they come without the ideasof the past and are more optimistic.
Avis T. Bohlen joined the Foreign Service in 1977. She servedat the Bureau of European Affairs including as DeputyAssistant Secretary, on the Policy Planning Staff and asExecutive Director on the US Delegation for Nuclear and SpaceTalks in Geneva.H. E. Bohlen was Ambassador to Bulgaria in the period 1996– 1999, she had been Deputy Chief of Mission at the USEmbassy of Paris before that from 1991 to 1995.Avis Bohlen was sworn in on November 24, 1999 as AssistantSecretary for the Bureau of Arms Control.
Positive Story
A v i s T . B o h l e n
Borislav T. Boyanov
has a Master of Law degree from Sofia University “St. KlimentOhridski” and has also studied at the Academy of American andInternational Law, Southwestern Legal Foundation in Dallas, USA.Mr. Boyanov has been an attorney at law since 1984, for two years(1986-1987) he lectured at the Economic University in Sofia.He founded Borislav Boyanov & Co. in 1990. The companyprovides a broad range of legal services in the business law:foreign investment, privatization, mergers and acquisitions,company and Commercial Law, Banking, Finance, Securities,Insurance, Intellectual Property, Arbitration & Litigation, AircraftLaw, Shipping, Property Law, Telecommunications & MediaLaw, Public Procurement, Construction Law.At present Mr. Boyanov is Chairman of the Board of Directorsof AIG Insurance and Reinsurance Company AD, HonoraryConsul for Malta in Bulgaria, Arbitrator with the Court of
Arbitration of the Bulgarian Chamber of Commerce andIndustry, Honorary Advisor to the Minister of Justice onInternational Legal Relations, and President of the South EastEurope Legal Group.He is a Registered Patent and Trademark Attorney andEuropean Patent and Trademark Attorney.Mr. Boyanov is a member of the Sofia Bar Association andthe Bulgarian Bar Association. He is Senior Vice-Chairman ofthe Eastern European Forum at the International BarAssociation, and an honorary member of the Center forInternational Legal Studies. Among other memberships thesestand out: Co-Foundor and Director of the British Balkan LegalFoundation, member of the Advisory Board of the Institute forInternational and Comparative Law at the Center for Americanand International Law in Dallas, Texas.
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George Randelov
has been Country General Manager ofIBM Bulgaria Ltd. since 1997. Previousto that he worked as PC and SMBManager, and as General Business UnitManager at the country; he used to beIBM Product Manager at ProSoft Ltd.Mr. Randelov has experience in thefield of metal processing and CAD/CAMsystems, in trading, marketing, andindustry management, in competitivemarketing skills, people managementskills and distribution, wholesale andremarketing of IT.He graduated Mechanical Engineeringat the Technical University of Sofia andInternational Economic Relations at theEconomic University of Sofia. He alsostudied at the French College – Aix en
Provance, has a Professional Certificateof Management, and a Master ofBusiness Administration degree formHenley Management College.IBM was founded in Bulgaria in 1937.Today IBM Bulgaria is a leading IT sup-plier on the Bulgarian IT market andstands ready to meet the needs of itswide clientele with more than 50 qualifiedand committed IBM professionals plusover 20 Business partners coveringwhole country and major industries.IBM’s advanced technology and know-how support the most important econom-ic processes and industries in Bulgaria,such as banking, defense, privatization,government, manufacturing, telecommu-nication and institutions.
Friedrich Niemann
joined the Hiltion Sofia in the beginningof the year from the Hilton Munich Cityin Germany. He received his university studies inHeilbronn University, Germany and ReimsManagement School, European Execu-tive, MBA. His rich professional experienceincludes being Regional Sales Managerat Inter-Continental Hotels, Cologne;Director of Sales and Marketing atKempinski Hotel Bristol Berlin; Directorof Sales and Operations (ExecutiveAssistant Manager) throughout theopening of Kempinski Hotel Taschen-bergpalais Dresden and GeneralManager at Kempinski Hotel FürstenhofLeipzig. Since November 2000 he man-aged Hilton Munich City, a first-classhotel with 481 rooms.In addition to the above, he has a widearray of experience in Sales & Marketing,PR, Team building, Yield management,and People management. He hasreleased various marketing publicationsin Germany and Italy (TOP Hotel, AHGZ,Restaurant & Hotel Management, Job inTourism, etc.). He is a member of theGerman Marketing Association.Sofia’s premier business hotel is excep-tionally located in the heart of the city,within the South Park, overlookingVitosha Mountain and is connected witha pedestrian bridge to the NationalPalace of Culture. Hilton Sofia is a state-of-the-art facilitywith 245 rooms on 8 floors, including 54Executive Rooms and 17 Suites,equipped with the most modern facili-ties. The guests of the 2 ExecutiveFloors have access to the Clubroom, aspecial area for relaxation, assistanceand business support, where they canenjoy complimentary breakfast, drinksand snacks throughout the day. Forconferences and banquets the Hoteloffers 450 square meters, including aballroom, which can accommodate upto 275 delegates and can be dividedinto 2 sections.
has been appointed Executive Director ofIdeal Standard Bulgaria in 2002.She has spent most of her professionalcareer with Ideal Standard holding anumber of senior management positionswith the company: Finance Director(1999 – 2001) and Business DevelopmentDirector (2001 – 2002).A Sevlievo native, Ms. Tsaneva is the firstBulgarian appointed to the top executiveposition at Ideal Standard in Bulgaria. She graduated the English LanguageSchool in Rousse and holds a degree inFinance from the University of Nationaland World Economy in Sofia.In the course of her career, she hasacquired a number of professional quali-fications amongst which the most recent– Champion and Black Belt in Six Sigmamethodologies, one of today’s world
leading quality management techniques.Ideal Standard Bulgaria AD is a subsidiaryof American Standard Inc. and is special-ized in the production of sanitary ware prod-ucts. The company is one of the Bulgariansuccess stories of greenfield investment.For less than five years since its officialopening, Ideal Standard is recognized to bethe largest and the most efficient manufac-turer of the corporation in Europe. The factory produces world-class bath-room products under the brand names ofIdeal Standard and Vidima for theBulgarian market as well as Porcher,Dolomite, Armitage Shanks, Scala, Tenaxand Senesi for the European markets.Ideal Standard Bulgaria is a significantfactor for the economical development ofthe region and helps Bulgaria move for-ward to free market economy.
Elitsa Tsaneva
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The American Chamber of Commercein Bulgaria is pleased to announce anew partnership agreement with TheOxford Business Group. The OxfordBusiness Group, the publishing andconsulting firm specializing in the mar-kets of Eastern Europe, Central Asia,the Middle East, and North Africa, hasrecently brought their flagshipEmerging Market series of annualcountry investment books to Bulgaria,following the success of their mostrecent publication, Emerging Romania2003. The forthcoming 200-page publi-cation Emerging Bulgaria 2004 will belaunched in November 2003 and will bepublished in association with theAmerican Chamber of Commerce inBulgaria. It will be the most compre-hensive English language review of theeconomy ever published internationally.A team of six Oxford Business Groupanalysts will be spending the next sixmonths researching and writing on allaspects of the Bulgarian economy. As
with the rest of the series, the groupexpects to conduct some 400 inter-views with the leading political andeconomic figures of Bulgaria. In addi-tion to comprehensive overviews ofBulgaria’s political and economic situa-tion, the publication will review eventsand trends in all the major economicsectors, including banking, capital mar-kets, IT and telecoms, insurance, indus-try, real estate and construction,tourism, and agriculture. EmergingBulgaria 2004 will also contain anexpanded defence chapter focusing onNATO expansion and featuring an inter-view with Lord Robertson. A detailedlegal and accounting section followsthese sectoral overviews. Produced for international financial insti-tutions, multinational companies, and for-eign investors; this book is an importantplatform for attracting foreign investment.In conjunction with the EmergingMarket series, Oxford Business GroupOn-Line offers its subscribers in-depth
weekly online briefings on each coun-try covered in the Emerging Marketseries. As a new benefit of being amember of the American Chamber ofCommerce in Bulgaria, you will nowreceive a full subscription to thesebriefings (Eastern European division).They are comprised of original contentand compiled by full time analystsbased in each country and are deliv-ered directly to your in-box. Everymonth sees a new series of articleslooking at the main economic and busi-ness developments.
For more information and a closerlook at the Bulgaria pages visitwww . ox fo rd bu s i n e s s g ro u p . c om
The Oxford Business Group
Committees of the American Chamber of
Commerce in Bulgaria and the Bulgarian
International Business Association (BIBA)
exchanged opinions and took joint actions
regarding the new procedures for the appli-
cation of the Double Tax Treaties (DTT)
which were adopted with the last amend-
ments of the Tax Procedures Code.
The two organizations sent a letter with
their common concerns and recommenda-
tions in relation to the amendments to
Minister of Economy Nikolay Vassilev,
Minister of Finance Milen Velchev and
Bulgarian Foreign Investment Agency Chair
Pavel Ezekiev.
AmCham also cooperated with BIBA on
preparing a statement about the proposed
amendments to the Energy Act addressed
to Chair of the Parliamentary Standing
Committee on Energy, Veselin Bliznakov,
Minister of Economy, Nikolay Vassilev,
Minister of Labor and Social Policies, Lydia
Shuleva, Minister of Energy and Energy
Resources, Milko Kovachev. The AmCham
committees on Public Affairs and Finance
met with BIBA committees to discuss and
prepare both statements.
The newly adopted rules in the Tax
Procedures Code introduce a “based-upon-
permission” regime for the application of
the DTTs for every relatively significant
case (at annual income of BGN 2,000 and
above). Every permission requires the pre-
sentation of official documents, which is
effort consuming, the joint statement reads.
Thus the cost for international projects,
which may include a lot of foreign partici-
pants, will be significantly raised.
In substance, the regime of 1998-1999
when similar rules existed is recovered,
according to the statement.
The statement proposes three recommen-
dations: disregarding the new rules for con-
tracts that are already being executed, revis-
ing the principle for withholding taxation, and
providing a possibility for direct application
of the DTTs by the payer of the income on
condition that he or she declares this fact
before the tax administration.
According to the second statement, dealing
with the Energy Act draft, the latter is of
exceptional importance because of the
importance of the energy sector for the
overall economic development and liberal-
ization of the energy market in Bulgaria,
and also because of the upcoming tenders
and issuing of licenses planned in the
electric energy and gas energy sectors.
The amendments proposed by BIBA and
AmCham are expected to increase the
independence of the State Energy
Regulatory Commission (SERC) and
improve the efficiency of the market. SERC
works with considerable professionalism
and responsibility, the statement reads. Its
autonomy and authority should be
enhanced and preserved and not
decreased and limited.
Furthermore, the proposed gradual intro-
duction of a liberal import-export market
is expected to contribute to the
increased investor interest to upcoming
tenders, will protect customers, and will
create better conditions for cheap and
reliable energy supplies.
AmCham Committees Cooperate with BIBA on Tax and Energy Legislation Proposals
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“This conference is a remarkable eventfor the Bulgarian defense industry,”President Georgi Parvanov said ofAmCham-organized international confer-ence “Bulgaria’s NATO Accession: Tradeand Investment Opportunities.” Accordingto him, it was a venue where perhaps forthe first time people discussed in pre-cise, clear and specific terms how toattract investment in specific sectors.“And I am confident that it will have along-term effect,” the President added.Representatives of top defense contrac-tors in the United States and the UnitedKingdom as well as of Bulgarian compa-nies took part in four panels discussingbusiness opportunities arising fromBuglaria’s NATO accession in SheratonHotel Balkan June 23. “Bulgaria’s NATOAccession: Trade and InvestmentOpportunities” gathered them with topofficials from the Government and high-ranking generals and officers from theBulgarian Army and NATO.Major players in the global defense indus-try, including three of the top five USdefense contractors took part in the con-ference, AmCham President Kenneth M.Lefkowitz stressed at its outset. Upgradingthe Bulgarian Armed Forces to NATO stan-dards will require roughly USD 1 billion in
procurement over the next five years or so,he said. “But selling to Bulgaria is onlypart of that story. The country’s defenseprocurement needs can be financed onlyif there is significant offsetting investmentin and procurement from Bulgarian indus-try,” he summarized.The participants in the conference weregreeted by the US Ambassador to BulgariaH.E. James Pardew who once againstressed the readiness of the US defenseindustry to cooperate with the Bulgarianone in his opening address. “Our meetingtoday is both timely and relevant toBulgaria’s upcoming membership inNATO,” he said, adding that the topic ofthe conference was of great personal inter-est to him as one of his top priorities asAmbassador is to help Bulgaria become“the best possible candidate for NATO.”I am sure the conference will play a roleto extend the cooperation betweenBulgaria and the US, Minister of DefenseNikolay Svinarov said. He explained that after receiving the invi-tation for NATO membership at thePrague Summit in 2002 the Governmentof Bulgaria has on a number of occa-sions pointed out that membership in theEuro-Atlantic defense structures apartfrom a social-political act aimed at guar-
anteeing the national security is a chal-lenge for the economy of the country. That is why one of the aspects of arma-ments policy is putting into place thebest possible organization necessary forthe modernization of the Armed Forcesof the Republic of Bulgaria, he said. “Akey element of this organization is themaximum use of international anddefense industry cooperation opportuni-ties,” Minister Svinarov stressed.
According to him, analyses conductedwith the help of US experts have proventhat the factories in Bulgaria have rela-tively limited technological and industrialcapacities for an independent realizationof the major priority projects for the mod-ernization of the Armed Forces. However,their subcontracting capacities are verygood. Minister Svinarov enumeratedsome of their positive characteristics: lowproduction costs, highly qualified person-nel, technological “know-how” and otherstrategic business advantages, whichshould be further developed and appre-ciated by Bulgaria’s partners, accordingto him. “Furthermore, our defense indus-try has excellent capacity for service andrepair of the majority of the armamentand equipment used by the ArmedForces of the Republic of Bulgaria,” thedefense minister noted. “The General Staff of the BulgarianArmed Forces is attaching particularimportance to the present conference,”General Nikola Kolev, Chief of Staff of theBulgarian Army said in his openingaddress. “The problems and issues thatare going to be discussed here are reallyessential for us in the present moment.”With really great efforts on behalf of theMinistry of Defense, the General Staff
Business Oppor tunitiesArise from Bulgaria’s NATO Membership
Minister of Defense Nikolay Svinarov (right) and
General Nikola Kolev, Chief of Staff of the
Bulgarian Army were two of the prominent guests
and key-note speakers of the international confer-
ence “Bulgaria’s NATO Accession: Trade and
Investment Opportunities,” organized by
AmCham Bulgaria on June 23-24.
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and the Services HQs the Plan for theOrganizational Building of our ArmedForces till 2004 was recently successful-ly accomplished, he announced. Thishas marked the end of the most difficultpart of the Reform in the BulgarianArmed Forces and enabled them to con-centrate their efforts on the improvementand modernization of the Armed Forces.“From now on our main efforts will bedirected towards restoration and prolon-gation of the equipment life cycle, mod-ernization of armament and equipmentand rearmament with modern samples.”The conference consisted of four panelson topics Defense Procurement,Investment Opportunities arising fromNATO Membership, Defense Сommuni-cation and Information Systems, andBulgarian Offset Policy.
Panel 1: Defense Procurement
The latest trends in defense procurementwere presented at the first panel of theconference moderated by Daved E. Potts,Ph. D., International Senior Director,Lockheed Martin Aeronautics Companywith key note speakers Nikolay Svinarov,Minister of Defense, Lt. General (Rtd.)William P. Hallin, NATO Maintenance andSupply Agency (NAMSA), Gen. NikolaKolev, Chief of Staff of Bulgarian Armyand speakers Thomas Cooper, GlobalDefense and Space Group, NATOAlliance Director, Cisco, and Col. DavidHusband (Rtd.) OBE, Head of HelicoptersOperational Capabilities, BAE Systems.The vision of Lockheed Martin is for a sin-gle integrated transatlantic marketplace,Mr. Potts said, which would meet harmo-nized NATO requirements. Such a marketis expected to best serve the collectivesecurity interests of the US and theEuropean allies and partners. It reflectsthe inevitable trends of 21st century tech-nology and economics, he explained. Essential features of the single integratedtransatlantic marketplace are the joint workon harmonizing military requirements, large-scale procurement that provides economicalproduction, the formation of transatlanticteams to compete for work, and transparentand open procedures. Lockheed Martin isactively pursuing global opportunities withglobal partners, Mr. Potts noted.“A key factor for the implementation of thestrategy in the area of modernization is themaximum use of international cooperationand integration opportunities in the field ofdefense industry,” Minister Svinarov said.
Preparing the Bulgarian Army for NATOmembership is a complex issue, MinisterSvinarov said, which has brought aboutthe need for a complex and three-foldlong-term strategy to address it. A long-term modernization plan and a mecha-nism for managing the modernizationprojects have been prepared, he added.Minister Svinarov outlined priorities forinternational cooperation and also men-tioned several modernization projectsunderway at the moment that rely onmutually beneficial cooperation with lead-ing world companies to guarantee theprovision of high technology, contempo-rary and interoperable, meeting NATOrequirements armaments and equipmentsystems for the Bulgarian Armed Forces.Among the partners for the projects hementioned were Lockheed Martin for theimplementation of the project“Development of a surveillance systemand use of the air space and air-defenseof the country” and BAE Systems for“Field Communications – InformationSystem of the Special OperationsForces” – a project within the frameworkof the US Foreign Military Financing(FMF) program.“The scope and character of the listedprojects makes it clear that their suc-cessful realization is possible only with-in the framework of large scale pro-grams for strategic partnership withleading world producers,” MinisterSvinarov concluded.The presentation of Lt. General Hallinfrom NAMSA also went along the lines ofinternational cooperation. AmongNAMSA’s advantages are the consolida-tion of requirements and cost sharing oflogistics and technical support for NATOnations, he said. The agency puts a focus on internation-al competitive bidding, Gen. Hallin noted
as the goal of NAMSA is to provide cost-effective support to the nations from thealliance.The transition undertaken in Bulgaria has alsobeen taken by NATO nations, Thomas Cooperfrom Cisco said. According to him, Bulgaria isno further behind than anyone else.Mr. Cooper explained the process ofachieving inner operability, which is guidedby NATO’s Standardization Agreements(STANAG). The 19 states in NATO mustreach agreement, he said, though somethink it is a weakness of the alliance, Mr.Cooper said he considered it its strengthas when 19 nations have agreed to do it,they will.Standardization Agreements offer a bal-ance between budget and performance,Col. David Husband said, but nationalcapabilities vary. The helicopter is a key element for NATObut the alliance does not have enough ofthem, Col. Husband said. BAE Systemsintends not just to equip but also to pro-vide system integration, according to him.Collective training and support are key tocapability he added.BAE Systems prime contracting capabilitycombines key in-depth skills in systems,defense and aerospace, enabling it tomanage the most complex high-level sys-tems tasks and provide total solutions – aone-stop shop capability and service pro-vision.
Panel 2: InvestmentOpportunities Arising fromNATO Membership
The second panel, which was dedicatedto investment opportunities arising fromBulgaria’s NATO membership, was moder-ated by A.G. (Tom) Leris of GeneralDynamics Corporation. Key note speakerswere Kaloyan Ninov, Deputy Minister of
From left: Mark Stevens, Director Europe, BAE Systems; Richard Dickson, Director Eastern Europe,
Harris Corporation; David Potts, International Senior Director, Lockheed Martin; Thomas Cooper, Global
Defense and Space Group, NATO Alliance Director, Cisco.
Economy and Sonya Yankulova, DeputyMinister of Defense, who presentedBulgaria’s advantages. Mr. Michael Sipos,Director for Europe of the BusinessCouncil for International Understandingdiscussed the importance of offset forattracting investment. Three Bulgariancompanies were also presented in thispanel: Arsenal, Arcus Lyaskovetz, andVMZ Sopot.Competition for foreign investment isbecoming more acute, Mr. Leris said,countries should show their competitiveadvantages to attract them, he added.Trying to become very good in manythings is a good idea but is also veryexpensive, he noted.General Dynamics is one of the very fewdefense companies that already do busi-ness in Bulgaria without even having soldanything in the country, he noted.The economic strategy of the Governmentexpects investments exceeding USD 1 bil-lion annually for the period until 2005,Sonya Yankulova, Deputy Minister ofDefense said in her presentation. TheGovernment is striving to maximize theeconomic benefit from spendings in thesphere by creating conditions for acquiringnew technical skills and intellectual prop-erty rights, as well as a favorable invest-ment climate for both local and foreigninvestors. In this way the defense industrywill contribute to the creation of new jobs,will improve the economic foundation ofthe state’s defense and will broaden thescience and technological base, Ms.Yankulova said.Finding the best balance between the for-eign participation in projects for moderniz-ing the Bulgarian Armed Forces and theparticipation of Bulgarian companies inmodernization projects for other armies isone of the goals of the implemented policy.“Our country is a very attractive invest-ment location with a rapidly improving
business climate and the partnershipopportunities for defense industry compa-nies are numerous,” said Deputy Ministerof Economy Kaloyan Ninov who presentedinvestment and outsourcing opportunitiesin Bulgaria. Bulgaria enjoys a strategic geographic loca-tion access to, liberalized markets with over560 million consumers, and has concludedover 100 agreements on the protections ofinvestments and the avoidance of doubletaxation, he said. Furthermore, majorinvestors in the country are granted “MajorForeign Investment” status, which goeshand in hand with special tax benefits. In the sphere of the defense industry,Bulgaria is a world-class producer of smallarms, light weapons, ammunition, rockets,bombs and missiles, according to MinisterNinov. The Bulgarian defense industry isalso expert at forging and casting of metalparts, manufacturing of mechanical engi-neering products, optical components anddevices, destruction and utilization of smallarms and ammunitions, he added. Foreign investments are the mirror ofnational successes and failures, MichaelSipos from Business Council forInternational Understanding (BCIU) said.An investor risks a lot and is looking forstability, predictability and a high rate ofreturn, he stressed. Three Bulgarian companies presentedtheir activities at this panel.Arsenal Co. is the oldest company in theBulgarian military industrial complex,Nikolay Ibushev, General Director of thecompany said. Arsenal’s main line of busi-ness is the production and trade of smallarms and artillery systems as well as theaccessories and ammunition for them, hesaid. Arsenal performs a close cycle ofproduction – from the raw material up tothe finished product, he noted.ARCUS Co. Liaskovetz is an international-ly recognized center of competence in
military engineering, Georgi Bankov,Marketing Director, said. It has specializedin development, production and supply ofdefense products for over 40 years now.ARCUS Co. is certified for compliancewith ISO-9001 and AQAP-110 QualityStandards and is licensed for manufac-ture, trade and export of defense-relatedproducts by Bulgarian Law andInternationally adopted regulations. Thecompany manufactures small firearms,ammunition for medium caliber automaticguns, spin stabilized grenades, mortarbombs, grenade launchers, etc.VMZ-Sopot was presented by Advisor Col.(Res.) Efrem Radev, who stressed that part-nership is the future of the company andinnovation and technology – its strategic aim.VMZ Sopot aims to retain its leadership indefense production and expand its com-mercial production. We want to be a com-pany that listens, anticipates, and per-forms, he concluded. The company man-ufactures guided missiles, unguided rock-ets, short-range combat ammunition,artillery ammunition, etc.
Panel 3: Defense Communicationsand Information Systems
The defense communications and infor-mation systems panel was moderated byGen. Major Ivan Ilevski, Chief of“Communication and InformationSystems” Directorate, General Staff ofBulgarian Army. Speakers on the panelwere Brian Sellwood, IBM Global Services,IBM UK Ltd., Phillip Knights, GovernmentSystems Business Manager, RaytheonSystems, Joost van Gemert, Global TradeManager EMEA, Lucent Technologies,Petar Georgiev, Executive Director, Samel90, and John Courtien, Systems Director,BAE Systems.Being a strategic partner to the Defenseand Intelligence Agencies helping to trans-form the business of defense and securi-ty and support the achievement of net-work enabled capability, is the aim of IBNGlobal Services, according to Mr.Sellwood. “IBM is a major supplier ofCommand and Control systems to govern-ments in UK and Germany,” he said andillustrated with a number of examples.National solutions were presented by Mr.Knights of Raytheon that deal with lawenforcement management, crisis and dis-aster management, and environmentalmonitoring management. He presentedWASM, EEZ Monitoring, SIVAM, and otherRaytheon products.
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Colonel David Husband (Rtd) OBE, Head of Helicopters Operational Capabilities, BAE Systems made
a presentation during the Defense Procurement panel. He noted that BAE Systems does not intend to sim-
ply sell equipment but to develop a long-term presence in Bulgaria.
Raytheon’s objective is to provide fullyintegrated turnkey solutions for govern-ment’s crisis needs, he said. Raytheon’sbusiness is working directly with govern-ments in all project phases to developeffective solutions, Mr. Knight added.Lucent’s mission was presented by Mr. vanGemert: to be the partner of choice forthe world’s leading service providers byhelping them create, build and maintainthe most innovative, reliable and cost-effective communications networks.One of Lucent’s greatest advantages as apartner is the largest amount of researchand development resources focused onthe service provider market that it has atits disposal thanks to Bell Labs. In 2002,for the second year Bell Labs led Lucentto number one ranking in overall techno-logical strength in the telecom sector,according to MIT Technology Review, Mr.van Gemert noted.Lucent’s BusinessPartner Program com-bines the local market knowledge andcustomer relations of a local companywith Lucent’s world class technology –EES Telecom Consortium and Kontrax areLucent’s BusinessPartners in Bulgaria.Mr. van Gemert noted at the end of hispresentation that Lucent has participated
in offset, counter trade and industry par-ticipation programs around the world forover 20 years already. Nowadays a goodoffset package can really differentiate you,he concluded.Samel-90 has been around since 1964,Mr. Petar Georgiev, Executive Director ofthe company said. It has always been oneof the main suppliers of electrical andcommunication equipment for theBulgarian Army. At the moment more than70 percent of the Samel-90 production isexported to the United Kingdom, Germanyand Belgium, he said.The company has been engaged as asubcontractor of BAE Systems for a mod-ernization project for the army, which,according to Mr. Georgiev, is the first largeproject in the Bulgarian Army withBulgarian and foreign participation. “Webelieve this tendency should continue inthe future as this is one of the ways toincrease the technical level of Bulgariancompanies and to provide for a possibilityfor local support and repair of the modernequipment of the army.BAE Systems Systems Director JohnCourtien shared that in-country participa-tion is key to the company’s business phi-losophy. It entails technology transfer, co-development and leads to maintenanceself sufficiency. BAE Systems is involvedin the modernization of the BulgarianCommunication and Information System(CIS) with two Bulgarian companies –Global Consulting as prime contractor andSamel-90 for the platform installation. BAE Systems has a firm commitment tocontinued development and fielding ofmodern C4I Systems in Bulgaria, he said. BAE Systems designs, manufactures, andsupports military aircraft, surface ships,submarines, space systems, radar, avion-ics, C4ISR, electronic systems, guidedweapons and a range of other defenseproducts, many of these with internationalpartners.
Panel 4: Bulgarian Offset Policy
The fourth and last panel was chaired byPavel Ezekiev, Chair of the BulgarianForeign Investment Agency. “We realizethe opportunity and the complexity that anoffset program presents,” he said. TheBulgarian side is working on creating alegal environment that will help executesuch contracts in the future he said.“Offset is more of art than science,” Mr.Ezekiev added, “we want to master thisart in Bulgaria.”
Harris Corporation has worked withBulgaria since 1998 when it found alocal partner – Miltech Ltd., Mr. RichardDickson, Director for Eastern Europesaid. The corporation has successfulworking relationship with the Ministry ofDefense and has invested in Bulgariaboth capital and know-how, including theradio programming software for localapplication development. Harris plansfor a strategic partnership and has sub-mitted a letter to the Ministry ofDefense in April 2002. “The focus is theoffset success we have had,” Mr.Dickson said.“Big projects need not scare us any-more,” said Col. Kiril Stoychev,Armaments Policy Directorate ofMinistry of Defense, as the DefenseCouncil has approved an offset programthat turns defense projects into aninvestment resource. The Ministry ofDefense now has the readiness to real-ize all projects that were presented byMinister Svinarov and Deputy MinisterYankulova. The offset instrument willalso allow Bulgarian companies to pre-pare better business strategies in theshort and long term.Electron Progress JSC is a privateBulgarian company that was founded in1976 as Institute for Special Electronics,Krassimir Pingelov, Vice President of thecompany’s Board of Directors said. Itwas privatized in 2002 and since thenthe management is working on imposinga new company culture.Historically, the main activities of thecompany include research and develop-ment, prototyping, manufacturing in smallseries, and engineering. One of thecompany’s main goals now is to pene-trate non-defense markets; however, itwants to remain the undisputable leaderin development and integration ofdefense communication and informationsystems. The highest quality of ElectronProgress’s products is assured by ISO9000:2000 and AQAP, the company alsoholds high-level security clearance, Mr.Pingelov noted.“There is no such thing as an off-the-shelf offset program,” David Broadbentfrom BAE Systems said at the conclusionof the panel. Every customer is differenthe said, but BAE Systems has becomegood at finance packages and is lookingfor long-term industrial partnerships andnot only short-term offset projects, henoted. The greatest added value in offsetis strategic independence, he said.Partnership is vital, he stressed.
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President Georgi Parvanov proposed in his closing
speech that a package of measures be implemented
to establish legislative economic preferences for the
defense industry, to do more in promoting bank
financing for firms from the industry, to develop
active forms of government support and provide
export guarantees.
“I am convinced that the information, shared during the confer-ence, will contribute to the enhancement of the already estab-lished relations and the generation of new ones,” Gen. NikolaKolev, Chief of General Staff of the Bulgarian Armed Forcessaid in his presentation at the business luncheon during theinternational conference “Bulgaria’s Accession to NATO: Tradeand Investment Opportunities.”
“It is my sincere hope that all the information, experience and ideasthat we have been sharing and the follow-up discussions will find toa greater extent their practical application in the future processesrelated to the modernization of our armament and equipment as wellas bringing them in accordance with NATO requirements,” he said.
The building and development of the Bulgarian Armed Forcesduring the past few years have been determined by severalbasic factors, Gen. Kolev explained: changes in the military-strategic environment, the new risks and threats, and thereceived invitation for NATO membership.
The beginning of the 21st century is characterized by highdynamics of transformation of the United Nations, the NorthAtlantic Treaty Organization, and the European Union, Kolev said.New regional and global canters have emerged. These factorstogether with the growing cooperation and integration processeshave deterring effect and lower to minimum the risk of a globalwar conflict outbreak. However, he noted, the outburst of terror-ism, the great number of regional and local conflicts and centersof tension will continue to influence security and defense policies.
In addition, the invitation for NATO membership changes therequirements for the Bulgarian Armed Forces with regard totheir structure, armament, equipment, training and infrastructure.
“In order to achieve its strategic goals of safeguarding thenational security and becoming a full member NATO and theEU, the Republic of Bulgaria prioritizes its efforts towards build-ing and development of modern Armed Forces,” Kolev said.
The Bulgarian Armed Forces will be developing the requiredoperational capabilities for the implementation of the full spec-trum of missions and tasks and for the purpose of contributingto NATO. Particular priority is attached to a number of capabil-ities, Gen. Kolev explained. The development of troops andforces should guarantee the maintenance of effective, combat-efficient, multifunctional, modular, mobile and deployable, rela-tively independent and thoroughly supported organizationalstructures, capable of responding to the challenges of the riskyenvironment in real time, and interoperable both with the othersecurity system structures and allies’ forces.
He outlined some of the main areas of the modernization ofthe Bulgarian land forces, air forces, and navy, the implemen-tation of which, according to him, opens large perspectives forinvestments of foreign companies during the various stages ofits implementation.
“We are encountering some financial difficulties concerning theimplementation of the plans related to the modernization of theBulgarian Armed Forces,” Kolev shared. Problems also arise outof the insufficient technical experience of the experts in theGeneral Staff and Bulgarian Armed Forces with regard to thewhole life cycle of the new equipment, he added.
“We receive significant support on these issues by our strate-gic NATO partners,” he recognized. “We particularly appreciatethe support rendered by the United States of America on theimplementation of a number of projects provided for by theForeign Military Funding Program (FMF).”
Gen. Kolev declared once again the willingness and determina-tion of the General Staff to base the modernization of theBulgarian Armed Forces on long-term strategic partnership withthe leading world companies with the participation of theBulgarian intellectual, financial and industrial potential and on thecomprehensive application of modern financial and economicmodels for delivery and services for the needs of the BulgarianArmed Forces, based on mutual interest and benefit.
He closed by expressing his conviction and that of the lead-ership of the General Staff that the forthcoming member-ship of the Republic of Bulgaria in NATO and the modern-ization of the Bulgarian Armed Forces will further promotethe development of the economic cooperation betweenBulgaria and the United States.
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Gen. Kolev:
Modernization will be Based onLong-Term StrategicPartnership
Gen. Nikola Kolev, Chief of General Staff of the Bulgarian Armed Forces
said he was convinced that the forthcoming membership of the Republic of
Bulgaria in NATO and the modernization of the Bulgarian Armed Forces
will further promote the development of the economic cooperation between
Bulgaria and the United States.
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AmCham President Kenneth M. Lefkowitz
cut out the traditional holiday cake at the
Independence Day Party.
H.E. James Pardew and the Master of Ceremony Mr. Bill Withrow
listen to the American anthem.
The grand prize this year was provided by Hilton Sofia
and Austrian Airlines – a weekend for two in Hilton Vienna.
AmCham Independence Day Party:
Sun, Fun, Rain and PrizesThe traditional Independence Day Partyorganized by the American Chamber ofCommerce in Bulgaria once again gath-ered more than 1,300 guests in theAmerican College of Sofia on July 5.The raffle prizes list was long, the sunshined and the musicians from the Cafйband ensured that the moods were high.
The planned program was cut short bythe sudden rain that hit Sofia but the fundid not stop there. Enthusiastic party-goers stuck on campus hopeful for thebig award: a weekend for two in Viennaby Hilton and Austrian Airlines.
AmCham thanks to the AmericanEmbassy and H.E. Ambassador JamesPardew, who opened the celebration andto the American College of Sofia for thehospitality.
We also thank the sponsors who madethe day of fun possible: the diamond
sponsor ADIS, the supporting sponsorsAIG Life and Genmark, and the spon-sors Red Devil, McDonalds’, HiltonSofia, Coca Cola, Pain D’Or, Zagorkaand Colbis and the raffle prize donators:Hilton Sofia, Austrian Airlines, Colliers,Villa Stresov International, AlliedPickfords, Alen Mak, Euro Travel, ForceDelta, Motorola, Hewlett Packard,Sheraton Sofia Hotel Balkan, ACT Soft,Interbrands, Abela Airport Services,Centralni Hali, Zagorka, Berlitz Bulgaria,Radisson SAS, The Sofia Echo, EllenGreenberg Medical Centre, 3M, and CityUniversity.
Special thanks go to the Master ofCeremony, Bill Withrow, who did not loseheart at the sight of the soaked emptylawn and the lack of electricity and,despite the pouring rain, gathered againthe crowd to give out all the prizes. Lastbut not least, thanks to all who cele-brated the day with us.
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Beer lovers demonstrated complete
lack of fear of rain.
AmCham President Kenneth M. Lefkowitz ,
H.E. James Pardew, and AmCham
Vice President Stefan Dimitrov with
friends and Allied Pickfords staff.
The sun smiled over
the official part of the
Independence Day Party.
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AmCham Executive Director
Valentin Georgiev pitches a joke
in assistance to the Master
of Ceremony.
Only the ones who have not
participated in the raff le,
do not know what it feels like.
The prize list was long and
exciting as usual.
The Cafe band provid-
ed the cheerful musical
background.
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The AmCham Independence Day community
party always calls for informal meetings.
The tables were loaded with great food and great mood.
Microsoft Bulgaria General Manager Teodor Milev
with the next generation.
The draw of the greatest raff le prizes at the end of the
party captivated everyone’s attention.
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Bulgarian Post Bank was established on April 2, 1991. On November 9,
1998, 78.23 percent of the Bank's share capital was acquired by
ALICO/CEH Balkan Holdings Limited, a company jointly owned by
American Life Insurance Company (ALICO), which is a subsidiary of
American International Group Inc., and Consolidated Eurofinance
Holdings, a subsidiary of European Financial Group. ALICO/CEH Balkan
Holdings Limited now owns 86.24 percent of the Bank's share capital.
Today Post Bank is among the top five banks in Bulgaria in terms of
assets size. Its Head Office is situated in Sofia. The Bank provides a
full range of banking services to Bulgarian and international customers
through its extensive network of 29 branches, 91 offices and customer
service desks at over 2, 700 Post Offices throughout the country.
Martin Zaimov was a member of theManagement Board of the Central Bankand Head of “Emissions” division overthe period June 1997 - February 2003.During his six-year stay at the BulgarianNational Bank Mr. Zaimov was responsi-ble for the management of the financialreserves of the country, thus contributingto the financial stability and security ofBulgaria. Today BNB has one of thebest teams for financial managementamongst the Central Banks in the world. Working as a deputy-minister of
Commerce under the administration ofStefan Sofiansky cabinet, MartinZaimov was in charge of the domesticmarket and the privatization in theMinistry of Commerce. From 1994 to 1997 Martin Zaimovworked as a director at “Louis Dreyfus”in Paris – one of the leading world foodtraders. Being in this position herestored its child company in Bulgariaafter an interruption of 60 years.In 1991 he founded “Bulgarian AuditCompany” in Sofia – associated mem-
ber of “Coopers and Lybrand” inBulgaria till 1994.Currently Martin Zaimov is a member ofthe Management Board of the Institute ofMarket Economy and a member of theBoard of Trustees of the AmericanUniversity in Bulgaria.Martin Zaimov has graduated form theLondon School of Economics (MBA)and Burkbeck college with a Diplomain Economics, as well as from theSofia Technical University inElectronic Engineering.
Mrs. Emilia Stefanova - Head of Marketing, Advertising and PR Department
at PostBank Mr. Martin Zaimov - Chairman of the Management Board and
Executive Director at PostBank Mr. Panagiotis Varelas – Member of the
Management Board and Chief Executive Officer at Post Bank.
According to National Accounting Standards, the profit ofPostbank for 2002 stands at BGN 7.616 million, reported theChief Executive Officer of the financial institution Mr.Panagiotis Varelas at the press conference, which took placeafter the General Meeting of the Shareholders on June 24,2003. The profit of the Bank has increased by 69 percent incomparison to 2001. The ROA has increased by 69.02 per-cent. The total assets have increased by 23 percent in com-parison to the previous year. The value of the shares has increased by 23 percent, accord-ing to the report. The shareholders voted on the distribution ofdividends in the amount of BGN 3.808 million. Postbank’s cred-it portfolio has increased by 33 percent compared to 2001 andthe share of the deposits has grown by 15 percent. Over the first five months of the year the Bank carried out sev-eral successful campaigns – the promotion of the Fast con-sumer loans, for which the applicant gets an answer in 20 min-utes, the savings-insurance program Junior Star and the SBLs– a new program Partners, which includes six credit productsand covers all needs of the small companies in terms offinancing. “By offering such new and up-to-date consumerproducts Postbank has strengthened its position of a leader onthe Bulgarian banking market”, said Panagiotis Varelas. Postbank has been seriously investing and successfully imple-menting its new Centralized Information banking system, devel-oped by a Bulgarian company. “In 2003 new significant invest-ments are planned mainly focusing on the upgrading of ourinfrastructure, on the introducing of Internet banking, MIS,automated loans workflow and loans processing,” added theBank’s CEO.“This is how, by combining the professional business expertiseof its team and a successfully functioning Bulgarian IT sys-
tem, the financial institution is able to develop efficient bank-ing products and service its clients more effectively”, addedMr. Varelas.The new Chairman of the Management Board Martin Zaimov,who occupied the position of Sub-Governor of the CentralBank until February 2003, was officially presented by theManagement. Being one of the best specialists and profes-sionals in the banking area, Mr. Zaimov shall be extremelyimportant for Postbank and its future development, stated theChief Executive Officer Panagiotis Varelas.
Postbank Repor ts 23% Increase of Total Assets for 2002The new Chairman of the Management BoardMartin Zaimov was officially presented by the Bank’s management
Chairman of the Management Board and Executive Director of Postbank
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The American University in Bulgariaand the College of Europe in Bruges,Belgium, in partnership with the Councilof Ministers of Republic of Bulgariaand the Institute for PublicAdministration and EuropeanIntegration, Bulgaria, organized for thethird time the European Union TrainingSeminar for Southeast Europe on July6-18, 2003.
The intensive training of the seminar ismodelled after the College of Europe’straditional Summer Schools held annu-ally at their Bruges campus. The suc-cess of the First and Second Editionsof the Intensive Seminar on theEuropean Union, in July 2001 and July2002, has led to the third edition andto its establishment as a traditionalannual event.
The two-week live-and-learn-togetherintensive seminar combines the exper-tise, competent personnel, and teach-ing staff of both the College of Europeand the American University inBulgaria, to deliver a model trainingprogramme for civil servants andexperts from Bulgaria and the region.
The third edition covered topics suchas the Future of the Enlarged EuropeanUnion; Criteria for EU membership andAdministrative Capacity development;Reform of Public Administration; TheChallenge of Enlargement; Negotiationswith the European Union; The eEuropeInitiative – the European eWindow forthe New Economy; Regulatory ImpactAssessment; European Programmesand pre-accession instruments of theEU, etc.
An interactive session “CommunicatingEuropean Integration” enhanced theunderstanding of the participants aboutmethods, ways and possibilities to raiseawareness and knowledge about all theaspects of European Integration.
Lectures were delivered by professorsboth from the American University inBulgaria and the College of Europe,Belgium, as well as by experts andother specialists in EuropeanIntegration issues from Bulgaria.
The core group of participants wasfrom Bulgaria (40 people working in thearea of Euro-integration and selectedon a competitive basis by IPAEI and theCouncil of Ministers’ Directorate ofState Administration). Civil servants andother specialists from Albania,Macedonia, Romania, Serbia andMontenegro, Turkey and the widerSoutheast European region, as well asparticipants from other countries alsotook part in the Seminar.
The Seminar was organised with the kindfinancial support of the Royal NorwegianMinistry of Foreign Affairs.
European Union Training Seminar for Southeast Europe
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IP Consulting Ltd. is a consulting agency, specializing inthe protection of industrial property rights, copyright andrelated rights it, as well as in the protection against infringe-ments of intellectual property and unfair competition, andborder control measures.IP Consulting offers research, analysis, protection and man-agement of patents, trademarks and brands, inventions,business names, and copyright.IP Consulting is a reliable adviser in the sphere of designsand useful models, geographical indications, selectionachievements (new plant sorts and animal breeds), biotech-nology, topology of integral networks, software and logotypes.IP Consulting offers professional consultations on legalcases concerning intellectual property, as well as represen-tation in courtroom.The Bulgarian Internet Portal for Intellectual Property –www.ipbulgaria.com is another project of IP Consulting Ltd.
Ivan Ivanov, President7B Aksakov Str, fl. 3, Sofia 1000
tel: 988 37 13, fax: 981 93 [email protected], www.ipconsulting.bg
Urban 3000 Ltd. is a Bulgarian company, child company ofUrban Holding & Enterprises, a foreign investment company,engaged in real estate properties. The company is managedand represented by Ori Niv. The main purpose of the establishment of Urban 3000 Ltdis the management of ambitious investment projects likeSofia Gardens, which is in process of construction.The project Sofia Gardens includes the construction of anexclusive residential compound, located in the luxury out-skirts of Sofia and covering an area of approximately 13000 sq. m. In its first stage the project will comprise theconstruction of five floor blocks of flats with 10 high qualityapartments each, surrounded by sustainable green land-scaping, fully equipped fitness center, swimming pool, cafe-teria and children playground.The second stage includes the construction of another blockin the same complex and the expectations are to completethe two stages in the summer of 2004.The main idea of the developers is that most of the finishedapartments are used for long term hiring.
Michaela Raynova, Personal Assistant37 Tzar Samuil Str., Sofia 1000
tel: 953 04 66, fax: 953 24 84, [email protected]
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Sherita M Ltd. is a company, which has set itself the ambi-tious task of cleaning buildings, offices, hospitals, automo-biles, and doing everything necessary for the home, etc.
The spatial design and decorative arrangement, planting,grassing and garden service are the other public utilities thatSherita M Ltd. offers to its partners and clients.
Sherita M Ltd. organizes its activities with permanently hiredpersonnel of about 70 persons and additional part-time hiredstaff. All employees are specially trained by the company.They are selected to be able to respond to the requirementsof even the most pretentious clients.
The company uses most high-quality machines and detergentsand sustains prices conformable to those of the market.
Margarita Petrova, General Manager52, Iskar Str., Sofia 1000
tel: 983 28 28, fax: 980 73 [email protected]
Ahrend’s mission is to be an international leader in the work-ing environment.
We aim: to be experts on what makes the ideal workspace,by listening closely to our customers and by constantly learn-ing; to know exactly what organizations and their people needto be able to work successfully, now and in the future; to cre-ate the desired working environment by putting together acarefully thought-out offering of office furnishing know-how,furniture and office products; to deliver durable and well-thought-out solutions that make our customers’ lives easier.
Vladislav Kulev, Representative3-5, Kaimakchalan Str., Sofia 1505
tel: 944 71 13; fax: 944 75 [email protected]; www.kulevproekt.com
“Effekten Und Finanz – Bulgaria” EAD was established inNovember 2001 as a subsidiary company of the Swiss company“Effekten & Finanz” AG, which was established in 1943 and isbased in the city of Baar. The latter’s main activities includeshare participation in the capital of companies in the industrialand commercial sphere and in the field of real estates. TheBulgarian company is 100 percent owned by the Swiss one. The purpose of establishing “Effekten Und Finanz Bulgaria”EAD was the participation in the privatization of “Alen Mak”AD and acquiring of 57 percent of its shares. Some of the largestinvestments of Effekten & Finanz AG dur-ing the past five years are in the petrol industry (Austria), tim-ber industry (Slovakia), light industry, construction and realestate (Czech Republic), and IT (Germany). The Company has established best contacts and partner-ships with financial institutions in Switzerland as well as insome other West European countries. “Effekten & Finanz”AG has provided the necessary financing to “Effekten UndFinanz – Bulgaria” EAD for the successful participation in theprivatization of “Alen Mak” AD, as well as for financing of theprimary investment and turnover funds needs.
Elena Apostolova, Executive Assistant8A Tzar Osvoboditel Blvd., tel: 91 55 669, fax: 981 98 81
[email protected], www.effekten-finanz.com
Alexandrov Ltd. was registered in 1998 and works in thearea of construction and management of tourist sites in themunicipality of Nessebar, Bourgas region.
Between the fall of 1999 and the summer of 2000,Alexandrov Ltd. constructed and started to operate the“Alexandrov Plaza” hotel complex, which includes a four-starhotel with 120 beds, a restaurant, a lobby-bar, a night-club, afitness center, an indoor and an outdoor swimming pool andsauna.
The company also owns a yacht and organizes sea-cruisesboth for the hotel guests and other tourists. Alexandrov Ltd.also holds a tour-operator’s license since 2002.
Since the fall of 2000 the company has specialized in the con-struction and sale of apartment complexes. Alexandrov Ltd.has recently completed the construction of an apartment blockin Nessebar and three apartment complexes in Sunny Beach.
Chavdar Aleksandrov, Owner16 Kiril i Metodii Str., Nessebar 8230
tel: 0554 444 91, fax: 0554 444 92www.alexandrov-plaza.domino.bg
