Invest in New Bulgaria

Invest in New BulgariaMinistry of EconomyJuly 2003

The Competitive Edge of Bulgaria Strategic geographic location

Liberalised access to markets with over 560m consumers (incl. EU, CEFTA, Turkey)

Almost 100 agreements on the protection of investments and avoidance of double taxation

Forthcoming NATO and EU membership

Investors in Bulgaria Will Find...Among the lowest costs of doing business in EuropeRobust legal framework focused on attracting and protecting foreign investmentFast improving business climateamong the lowest taxes in Europesignificant reduction in regulatory obstacles and start up costsaggressive business stimulus package introduced in 2002/2003Institutional support for major foreign investment projects Superb academic and vocational training Excellent labour quality/labour cost ratio average monthly salary of EUR144

Significant Business Climate ImprovementsSimplified licensing, permit and registration regimessimplification or abolishment of more than 50% of the existing ones; clarification of remaining regimesnew regimes to be imposed solely by Parliament voteAmbitious economic programme stimulating the economy0% profit tax in over 1/3 of the territory of the countrypending creation of industrial zones with significant investment incentivesVAT-free imports for investment projects over EUR5 mAdoption of International Accounting Standards (IAS)2003 for financial institutions and public companies2005 for all other companies

Macroeconomic Indicators

Bulgarian Economy in Early 2003:Accelerating GrowthIndustrial production grew by +23.4% yoy in March and by +9.2% yoy in April. Industrial sales by +30.4% and +9.6% respectivelyExports for the first four months jumped up by impressive +40.4% yoyUnemployment went down to 14.3% in May 2003, a record low level for the last three yearsInflation stays at bay: 0.8% for the first five months, 1.5% of the year and deflation of 0.6% is recorded for May

Bulgarian Economy in 2002: Well on TrackBulgaria is among the leaders in Europe in economic growth: 6.4% in Q3, 3.4% in Q4, 4.8% for 2002Inflation of 3.8%Unemployment of 16.27%, a drop of 1.63% compared to 2001Record high forex reserves: EUR4.58bnNear record low external public debt: USD8.3bnRobust growth in tourism revenues: 10% compared to 2001Improving current and trade account deficits to GDP ratios

Macroeconomic Stability Testimony from AbroadThe Governments economic program has received positive evaluation. The countrys credit rating has been raised on several occasions. The rating for Bulgarias long-term foreign currency currently stands at:BB+ (with stable outlook) according to Standard&PoorsBB (with positive outlook) by Fitch IBCAB2 (with stable outlook) by MoodysBB+ (with positive outlook) by the Japan Credit Rating Agency more rating upgrades are expected in 2003Support of the international financial institutionsthe IMF approved a two-year stand-by agreement for SDR250 mthe World Bank adopted a supporting strategy worth USD750 m in totalthe EBRD launched a USD500 m private sector financing program

Second Generation of Economic Reforms (1)VAT-free imports for investment projects over EUR5 m0% profit tax in high unemployment regionsSignificant reduction of bureaucracyintroduction of one-stop-shopIntroduction of silent consent approachreduction of licensing regimesnew regimes to be imposed solely by ParliamentPlanned creation of industrial zones with significant investment incentivesPlanned introduction of 100% yearly depreciation for equipment for priority investment projects

Second Generation of Economic Reforms (2)The launch of a Private Equity Fund(s) is shortly expected state participation of up to EUR51 m (BGN100 m) additional investment from the private sector the funds will be invested in equities of developing Bulgarian companies strong competition for the professional management of the Fund: 15 applications4 candidates selected (TBIF Financial Services BV and Equest Partners Ltd., Copernicus Capital Management SP, GED Capital Development SA, Time Capital Partners and BAC)

GDP Growth (by Quarters, %)Source: CANSTAT, EUROSTAT

GDP Growth (%)Source:EBRD, Ministry of Economy

Gross Domestic Product (EUR bn)Source: Ministry of Finance

GDP Structure (by Sector, %)Source: National Statistics Institute

Chart1

15.130.754.2

26.227.945.9

18.830.550.7

16.328.255.5

13.929.157

13.628.557.9

12.527.859.7

12.829.657.6

Agriculture and Forestry

Industry

Services

12.8

12.5

13.6

13.9

16.3

18.8

26.2

15.1

29.6

27.8

28.5

29.1

28.2

30.5

27.9

30.7

57.6

59.7

57.9

57.0

55.5

50.7

45.9

54.2

Companies with FDI

Information & Communication TechnologiesInformation & Communication Technologies

CountryCompanyInvestmentForeign Firms with Investments in Bulgaria

AustriaMOBILTEL HOLDING GmbH

GreeceINTRACOM

GreeceOTE

NetherlandsGLOBAL ONE HOLDING

UKCABLE AND WIRELESS

USARILA SOLUTIONS

Energy Sector

CountryCompanyInvestment

USAACCESS INTERNATIONAL

USAENERGY

Transport and Logistics


AustriaFRANZ WELZ

AustriaSCHENKER

AustriaVAE

GermanyWILLI BETZ

HungaryINTERLICHTER

SwitzerlandM + M MILITSER INTERNATIONAL

Tourism


CyprusCLASMAN ENTERPRISES

GermanyC&N TOURISTIC AG

GreeceGOODYS

ItalyAUTO RICAMBI SRL

SwitzerlandZURICH INVEST

TurkeyPRINCESS HOLDING GROUP

USAHILTON INTERNATIONAL

USAMcDONALDS

Food processing, Beverages and Tobacco Industry


BelgiumINTERBREW

CyprusSOFTBUL INVESTMENT

GreeceBREWINVEST

GreeceCHIPITA INTERNATIONAL

GreeceDELTA

GreeceTKM FRUIT AND JUICE

FranceDANONE

LuxembourgKLARINA HOLDING

NetherlandsEASTSTRACH

NetherlandsPROVIMI

PortugalVINPROM SERVICE KORK

SwitzerlandNESTLE

UKBOYAR INTERNATIONAL

UKLUXCRAFT

UKUNIBUL WINES

USAKRAFT FOODS INTERNATIONAL

USASEABORD OVERSEAS

Textile and Apparel


GermanyHAINER & PETER ROESLER

GermanyROLLMANN

IrelandMARLAND INTERNATIONAL LTD.

ItalyMIROGLIO

ItalySALVADORI

NetherlandsBRANDEX

TurkeyMASER

Electrical Engineering and Electronics


BelgiumEPIQ GROUP

Czech RepublicPRAMET

FranceSCHNEIDER ELECTRIC

GermanyFESTO

GermanyLIEBHERR

GermanySIEMENS

GermanySPARKY TRADING

HungaryVIDEOTON HOLDING

KoreaHYUNDAI

Switzerland, SwedenASEA BROWN BOVERI

USAMICHIGAN MAGNETICS

bgdream:check RADISSON SASWhat company is that?

GDP break-up by industry

National Statistic Institute, 2001

Economic Sectors


Agriculture

Forestry

Industry

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Services

%

19961997199819992000200120022003P

15.126.218.816.313.913.612.512.8

30.727.930.528.229.128.527.829.6

54.245.950.755.55757.959.757.6

Total100100100100100100100100

1995199619971998199920002001

39.340.144.250.452.151.354.8

8.37.74.64.67.910.87.2

17.919.317.612.496.15.8

3.93.53.24.94.444.8

11.911.513.612.112.415.214.3

18.817.916.715.514.112.511.7

1995199619971998199920002001

37.335.837.145.248.44449.4

1.31.51.31.50.80.80.6

35.53633.724.923.527.823.7

4.14.54.95.56.48.77.6

5.85.17.28.187.57.9

15.917.115.714.71311.19.5


000

000

000

000

000

000

Other secs by country

Other FDI Sectors and Foreign Firms in Bulgaria

IndustryCountryInvestors

Chemical IndustryFranceFRANCE ARNE

RussiaLUKOIL PETROL

BelgiumSOLVAY

USAWHITEBEAM HOLDING

MetallurgyGreeceHALKOR

BelgiumUMICORE

GreeceVIOHALKO

Building MaterialsAustriaBRAMACK DACHSYSTEME

SwitzerlandKERAMIK HOLDING

AustriaKNAUF

GermanyYTONG

Cement IndustryFranceCEMENT FRANCAIS

GermanyHEIDELBERGER ZEMENT

TradeGreeceENA

AustriaEUROBILLA

GermanyMETRO

TurkeyMIGROS TURK T.A.S.

AustriaOMV

UKSHELL

FDI by country

Foreign Direct Investment by Country till 2001 ($m)

Country

Denmark5.8

Japan9.1

Sweden10.3

Czech10.5

Malta11.2

Liechtenstein12

Israel17.5

Hungary18.8

Ireland23

Luxemburg57.6

Korea59.8

Switzerland105.9

France123.7

Turkey128.5

Spain129.8

United Kingdom196

Netherlands204.8

Russia205.3

Cyprus267.2

USA277

Austria351.2

Belgium415.9

Italy451.4

Greece541.7

Germany563.2

source: Foreign Direct Investment Agency

PrivatisationGreenfield investment and reinvested profitsTotal FDI

1992034.434.4

19932280.4102.4

1994134.276.7210.9

199526136.6162.6

199676.4180256.4

1997421.4214.8636.2

1998155.8464.2620

1999226.7592.1818.8

2000366635.51001.5

200119670689

2002E800

Overall FDI by sector in %

Financial intermediation* 44%4.4

Post & telecoms 28%28

Basic metals 8.7%8.7

Trade 3.8%3.8

Construction 3.1%3.1

Coal, refined petrolemum products & nuclear fuel 1.8%1.8

Offer (small sectors) 50.2%50.2

100

Total Direct Investment by sector and year $m

Sector1998199920002001*TotalSector1998199920002001*Total by sectors

Financial activities63.8119.1443.262.8688.9Financial activities63.8119.1443.262.8688.9

Trade and repairs177.412489.571.6462.5Trade and repairs177.412489.571.6462.5

Petroleum, chemical, rubber and plastic products41165.272.111.5289.8Petroleum, chemical, rubber and plastic products41165.272.111.5289.8

Mineral products (cement, glass,...)150.671.87.419.4249.2Mineral products (cement, glass,...)150.671.87.419.4249.2

Telecommunications23.214.114.9177.4229.6Telecommunications23.214.114.9177.4229.6

Metallurgy13.272.217.137.2139.7Metallurgy13.272.217.137.2139.7

Mechanical products21.31864.716.6120.6Mechanical products21.31864.716.6120.6

Food products31.532.711.742.9118.8Food products31.532.711.742.9118.8

Wood products, paper37.324.938.15.3105.6Wood products, paper37.324.938.15.3105.6

Hotels and restorants26.840.520.816.7104.8Hotels and restorants26.840.520.816.7104.8

Textile and clothing4.425.127.333.790.5Textile and clothing4.425.127.333.790.5

Electrical eng., electronics, computers and communication equipment11.55.928.62773Electrical eng., electronics, computers and communication equipment11.55.928.62773

Construction6.36.512.718.844.3Other465.9

Real estate and business activities0.114.72.88.125.7

Leather and leather products0.7021.20.222.1

Electriciti, gas and water0018.70.819.5

Agriculture, foresrty and fishing0.12.410.71.314.5

Publishing00.20.38.48.9

Transport6.2-11.710.12.77.3

Mining02.702.85.5

Vehicles and other transport equipment-0.91.700.61.4

Other5.588.899.7122.7316.7

FDI by country

000

000

000

000

000

000

000

000

000

000

000

Privatisation

Greenfield investment and reinvested profits

Total FDI

FDI by year ($m)

market cap

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

FDI

IT profs

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Operating costs

1EUR1.95583

BGNEUR

Official market A12,641,073.40

Official market B56,545,973.70

Official market C147,380,246.55

216,567,293.65110,729,099

Unofficial market106,769,247,099.00

106,985,814,392.6554,700,978,302

Source:Global IT IQ Report of March 2002 of Brainbench, Inc.

The data for the population is taken from the mid-2001 estimates of

U.S. Census Bureau, International Database and The World Factbook, 2000.

IT Certified Professionals in % of the Population

(World Top 10 Countries)

%Number

Latvia0.1927%4597

Estonia0.1443%2054

Bulgaria0.1147%8844

Singapore0.0828%3559

Lithuania0.0823%2972

Romania0.0721%16122

United States0.0698%194211

United Arab Emirates0.0617%1485

Canada0.0607%19181

Israel0.0533%3164

00

00

00

00

00

00

00

00

00

00

&A

Page &P

%

Number

194211

Operational Costs in Bulgaria, 2002

Monthly salary, EUR130

Nominal salary growth, %7.3

Social security, unemployment fund and health care contributions as % of monthly salary42.7 (75% payed by the employer)

Corporate tax, %

Aggregate rate, %23.5

VAT, %20

Price of arable land, year 2001, average EUR/1000 sq mile35-179

Office rent in Sofia, average EUR/sq m/month25-35

Apartment purchase price in Sofia, average EUR/sq m299

Water charges for industrial use in Sofia, EUR/m0.13

Water charges for household use in Sofia, EUR/m0.16

Telephone installation charges, EUR51

Telephone monthly subscription fee, EUR2.56/4.62

International phone call EUR/min

Europe0.31-0.41; 0.16-0.21

USA0.74-0.20

Electricity prices per kWh, including VAT

Electricity for industrial use, EUR

3 tariff-reading

pick0.070

day0.043

night0.027

2 tariff-reading

day0.056

night0.027

Electricity for household use, EUR

day0.050

night0.027

GDP Structure (by Ownership, %)Source: National Statistics Institute

Chart4

55.944.1

63.436.6

62.437.6

6436

69.630.4

71.728.3

72.727.3

8515

Private

Public

85.0

72.7

71.7

69.6

64.0

62.4

63.4

55.9

15.0

27.3

28.3

30.4

36.0

37.6

36.6

44.1


Structure of GDP by sector

19961997199819992000200120022003F

Private55.963.462.46469.671.772.785

Public44.136.637.63630.428.327.315

Annual Inflation (%, Year-End, 1991-2003E) Source: National Statistics Institute

Inflation (%, Year-End)Source: Governmental Sources and National Statistics Institute

Unemployment (%, 01/1992-05/2003)Source: Employment Agency

Unemployment (%, 01/2001-05/2003)Source: Employment Agency

Base (Benchmark) Interest Rate(%, 01/1998-05/2003)Source: Bulgarian National Bank 2.96%

Chart1

0.0656

0.0652

0.064

0.0627

0.0607

0.059

0.0578

0.0561

0.0553

0.0549

0.0532

0.0528

0.0532

0.0541

0.0541

0.0537

0.0532

0.0524

0.0516

0.0512

0.0516

0.052

0.0516

0.0512

0.0508

0.0512

0.052

0.0528

0.0524

0.0516

0.0512

0.0508

0.0504

0.0499

0.0508

0.0512

0.0508

0.0504

0.0499

0.0491

0.0483

0.0487

0.0483

0.0479

0.0475

0.0471

0.0467

0.0463

0.0454

0.0356

0.045

0.0446

0.0442

0.045

0.0475

0.0479

0.0475

0.0479

0.0475

0.0471

0.0463

0.045

0.0446

0.0442

0.0446

0.0442

0.0426

0.0413

0.0393

0.0368

0.034

0.0323

0.0311

0.0303

0.0348

0.0356

0.0364

0.036

0.0364

0.0356

0.0348

0.0344

0.036

0.0417

0.0405

0.0393

0.0372

0.0344

0.0348

0.0344

0.0372

0.0401

0.0385

0.0381

0.0393

0.0401

0.0397

0.0401

0.0413

0.0442

0.0446

0.045

0.0471

0.0467

0.0458

0.0454

0.0463

0.0453

0.0429

0.0396

0.0421

0.0415

0.0424

0.0436

0.0439

0.0447

0.0447

0.0447

0.0447

0.0455

0.0459

0.0475

0.0468

0.0476

0.0463

0.0479

0.0465

0.0478

0.0454

0.0443

0.0408

0.0392

0.0371

0.0367

0.0379

0.0375

0.0371

0.0371

0.0331

0.025

0.0252

0.0256

0.0295

0.0296

RATE

07.02.199145.00%05.02.199642.00%1/5/986.56%

10.06.199152.00%06.03.199649.00%1/7/986.52%

10.07.199147.00%26.04.199667.00%1/14/986.40%

21.08.199154.00%10.05.1996108.00%1/21/986.27%

06.07.199249.00%24.09.1996300.00%1/28/986.07%

03.08.199245.00%18.10.1996240.00%2/4/985.90%

15.09.199241.00%04.11.1996180.00%2/11/985.78%

01.01.199347.00%28.01.1997198.00%2/18/985.61%

22.02.199351.00%01.03.1997216.00%2/25/985.53%

04.06.199348.00%07.04.1997205.68%3/4/985.49%

23.08.199344.00%14.04.1997169.80%3/11/985.32%

01.11.199347.00%21.04.199796.36%3/18/985.28%

10.11.199352.00%28.04.199774.40%3/25/985.32%

10.01.199456.00%12.05.199762.40%4/1/985.41%

14.03.199462.00%19.05.199751.48%4/8/985.41%

07.09.199472.00%26.05.199743.08%4/29/985.37%

10.04.199565.00%02.06.199748.72%5/6/985.32%

25.04.199560.00%09.06.199747.28%5/13/985.24%

08.05.199554.00%16.06.199735.76%5/20/985.16%

21.06.199548.00%23.06.199715.20%5/27/985.12%

03.07.199544.00%30.06.199710.12%6/10/985.16%

17.07.199539.00%07.07.19979.76%6/24/985.20%

01.08.199534.00%14.07.19976.96%8/5/985.16%

21.07.19976.12%8/19/985.12%

28.07.19975.42%9/9/985.08%

04.08.19975.50%10/14/985.12%

11.08.19975.59%10/21/985.20%

18.08.19975.70%10/28/985.28%

25.08.19975.86%11/11/985.24%

01.09.19975.98%11/18/985.16%

08.09.19976.11%11/25/985.12%

15.09.19976.23%12/2/985.08%

22.09.19976.27%12/9/985.04%

29.09.19976.03%12/16/984.99%

06.10.19975.78%12/30/985.08%

13.10.19975.53%1/6/995.12%

20.10.19975.12%1/13/995.08%

27.10.19974.87%1/27/995.04%

03.11.19974.95%2/10/994.99%

10.11.19975.45%2/17/994.91%

17.11.19975.41%3/10/994.83%

24.11.19975.90%3/17/994.87%

01.12.19976.40%3/24/994.83%

03.12.19976.94%3/31/994.79%

10.12.19976.85%4/7/994.75%

17.12.19976.77%4/14/994.71%

29.12.19976.65%4/21/994.67%

4/28/994.63%

5/5/994.54%

5/10/993.56%

5/12/994.50%

5/19/994.46%

5/26/994.42%

6/23/994.50%

6/30/994.75%

7/7/994.79%

8/11/994.75%

8/25/994.79%

9/1/994.75%

9/15/994.71%

9/23/994.63%

9/29/994.50%

10/6/994.46%

10/13/994.42%

11/3/994.46%

1/5/004.42%

1/12/004.26%

1/19/004.13%

1/26/003.93%

2/2/003.68%

2/9/003.40%

2/16/003.23%

2/23/003.11%

3/1/003.03%

3/15/003.48%

3/22/003.56%

4/5/003.64%

4/12/003.60%

4/26/003.64%

5/10/003.56%

5/17/003.48%

5/25/003.44%

6/14/003.60%

6/21/004.17%

6/28/004.05%

7/5/003.93%

7/12/003.72%

7/19/003.44%

8/2/003.48%

8/16/003.44%

8/23/003.72%

8/30/004.01%

9/7/003.85%

9/13/003.81%

9/20/003.93%

9/27/004.01%

10/4/003.97%

10/11/004.01%

10/18/004.13%

10/25/004.42%

11/1/004.46%

11/15/004.50%

11/22/004.71%

12/6/004.67%

12/13/004.58%

12/20/004.54%

12/28/004.63%

1/3/014.53%

1/17/014.29%

2/7/013.96%

2/21/014.21%

3/7/014.15%

4/4/014.24%

4/18/014.36%

5/2/014.39%

5/16/014.47%

6/4/014.47%

6/20/014.47%

7/4/014.47%

7/18/014.55%

8/1/014.59%

8/15/014.75%

9/5/014.68%

9/19/014.76%

10/3/014.63%

11/21/014.79%

12/5/014.65%

1/2/024.78%

2/6/024.54%

3/6/024.43%

4/3/024.08%

4/30/023.92%

6/5/023.71%

7/3/023.67%

8/7/023.79%

9/4/023.75%

10/2/023.71%

11/6/023.71%

12/4/023.31%

1/29/032.50%

2/26/032.52%

3/26/032.56%

4/30/032.95%

5/28/032.96%

Base (Benchmark) Interest Rate(%, Year-End)Source: Governmental Sources and Bulgarian National Bank

Budget Surplus/Deficit (% GDP)Source: Governmental Sources and Ministry of FinanceBulgariaCEE Countries (2002)

Chart

-0.0120.029

0.0090.055

-0.010.03

-0.0110.032

-0.0090.029

-0.0070.028

-0.0070.028

00.032

Budget surplus/deficit, % GDP

Primary surplus, % GDP

0.9

-1.0

-1.1.

-0.9

-0.7

-0.7

0.0

-1.2

2.9

5.5

3.0

3.2

2.9

2.8

2.8

3.2

Data

1997-1.2%2.9%

19980.9%5.5%

1999-1.0%3.0%

2000-1.1%3.2%

2001-0.9%2.9%

2002-0.7%2.8%

2003F-0.7%2.8%

2005F03.2%

Chart1

-0.065

-0.052

-0.049

-0.048

-0.035

-0.025

-0.02

-0.007

-0.7%

-2.0%

-2.5%

-3.5%

-4.8%

-4.9%

-5.2%

-6.5%

Data

Croatia-6.5%

Poland-5.2%

Hungary-4.9%

Slovakia-4.8%

Romania-3.5%

Slovenia-2.5%

Czech Republic-2.0%

Bulgaria-0.7%

Foreign Exchange Reserves (EUR m, 1998-2002)Source: Bulgarian National Bank

Foreign Debt (USD m, 1996-2002)Source: Bulgarian National Bank

Government Debt (% GDP, 1997-2002)Maastricht criterionSource: Ministry of Finance105.1%83.2%86.7%77.1%70.1%56%50%60%70%80%90%100%110%199719981999200020012002

Source: National Statistics InstituteAverage Monthly Salary (EUR, 01/2000-03/2003)

Source: AIMS Human Capital Bulgaria (2002)Low averageHigh averageGross Monthly Salary Levels (USD)

Chart4

27505300430050507500

10002000220022004000

6001500130020002500

300300500550500

Bulgaria

Romania

Czech Republic

Hungary

Poland

Low averageHigh averageSource: AIMS Human Capital BulgariaGross Monthly Salary Levels (USD)

BG v Average-low avg

27505616.6666666667

10002800

6001933.3333333333

300516.6666666667

Bulgaria

Average for Poland, Czech Republic and Hungary

salary data

Average Salaries - low estimate

BulgariaRomaniaCzech RepublicHungaryPolandAverage for Poland, Czech Republic and Hungary

Chief Executive275053004300505075005617

Top/Senior Management100020002200220040002800

Mid Management60015001300200025001933

Professional Staff300300500550500517

Average Salaries - high estimate


Chief Executive275053004300505075005617


Mid Management100025002250350040003250


Source: Aims Human Capital Bulgaria

BG v Average-high avg

27505616.6666666667

15004233.3333333333

10003250

5201566.6666666667

Bulgaria

Average for Poland, Czech Republic and Hungary

salary data

Average Salaries - high estimate


Chief Executive275053004300505075005617


Mid Management100025002250350040003250


Source: Aims Human Capital Bulgaria

Gross Capital Formation (% GDP, 1996-2002)Source: National Statistics Institute

Gross Capital Formation (BGN bn, 1997-2002)Gross Capital Formation (BGN bn, 1997-2002)Source: National Statistics Institute

Macroeconomic Indicators (1)Source: Ministry of Finance

1996

1997

1998

1999

2000

2001

2002E

2003F

GDP

(BGN bn)

14.43

17.43

22.42

23.79

26.75

29.62

32.32

35.00

Real GDP growth

(%)

-9.4

-5.6

4.0

2.3

5.4

4.0

4.8

4.8

Annual inflation

(year-end, %)

311.6

547.7

1.6

7.0

11.3

4.8

3.8

4.0

Budget deficit

(% GDP)

-10.4

-3.0

1.0

-0.9

-1.0

-0.9

-0.7

-0.7

Macroeconomic Indicators (2)Source: Ministry of Finance, Ministry of Economy and Bulgarian National Bank

1996

1997

1998

1999

2000

2001

2002

Foreign debt

(% GDP)

97.0

100.4

85.5

84.2

88.9

78.3

70.6

Balance of payments

(USD m)

-724

1,205

-95

96

137

373

715

Current account

(USD m)

164

1,046

-61

-652

-702

-842

-677

Current account

(% GDP)

1.7

10.1

-0.5

-5.0

-5.6

-6.2

-4.4

Trade balance

(USD m)

122

321

-381

-1,081

-1,175

-1,580

-1,593

Exports

(USD m)

4,689

4,809

4,193

4,006

4,825

5,113

5,688

Imports

(USD m)

4,568

4,488

4,574

5,087

6,000

6,693

7,281

Import coverage

(months)

1.5

5.1

6.1

5.9

5.4

5.0

6.1

FDI

(USD m)

109

505

537

819

1,002

813

479

Taxation

Among the Lowest Taxes in EuropeCorporate tax23.5%0% in regions with high unemployment, 1/3 of the countrys territoryfast depreciation rates: 2 years for computers, 3 1/3 years for equipmentPersonal income taxhighest rate at 29%rates of 0, 15, 22, 26 and 29% (year 2003)Capital gains tax: 0%Interest income tax: 0%

0% Corporate Profit Tax in 2003 (Green Regions)N.B.The list is solely based on unemployment figuresThe regions include industrial sites with developed infrastructure

Tax and Accounting ReformAdoption of International Accounting Standards (IAS) from 2003 for financial institutions and public companies and from 2005 for all other companiesIntroduction of 100% yearly depreciation for equipment for priority investment projectsCreation of a single State Revenues AgencyValue added tax (VAT)exemption for imports for investment projects over EUR5mgeneral tax refund time falls from 4 to 3 months45 days refund for export-oriented companiesexemption for software exportsregistration threshold falls to BGN50,000 from BGN75,000

Personal Income Tax Rates/Brackets (%, 1999-2005)Source: Ministry of Finance

Market Access & Foreign Trade

Preferential Market Access (1)WTO membership since 1996European Union Association AgreementEFTA AgreementCEFTA membershipFree Trade Area with Turkey, Macedonia, Latvia, Lithuania, Israel, and EstoniaSighed Free Trade Agreement with AlbaniaPending signature of a Free Trade Agreement with Moldova, Bosnia & Herzegovina, and Serbia & Montenegro

Preferential Market Access (2)European UnionEFTACEFTAOthers

Pending FTAs:Bosnia & HerzegovinaSerbia & MontenegroMoldova

Free Trade Agreement With:

Exports (by Region, %, 1995-2002)Source: National Statistics Institute

Chart11

39.38.317.93.911.918.8

40.17.719.33.511.517.9

44.24.617.63.213.616.7

50.44.612.44.912.115.5

52.17.994.412.414.1

51.310.86.1415.212.5

54.87.25.84.814.311.7

55.66.44.55.414.711.5

EU

Balkan

CIS

CEFTA

Other from OECD

Other

39.3

40.1

44.2

50.4

52.1

51.3

54.8

55.6

10.8

8.3

7.7

7.9

7.2

4.6

4.6

6.4

19.3

17.6

12.4

5.8

6.1

17.9

9.0

4.5

4.8

4.0

4.4

4.9

3.2

3.5

3.9

5.4

11.9

11.5

13.6

12.1

12.4

15.2

14.3

14.7

11.7

12.5

14.1

15.5

16.7

17.9

18.8

11.5

External Sector

19951996199719981999200020012002

EU39.340.144.250.452.151.354.855.6

Balkan8.37.74.64.67.910.87.26.4

CIS17.919.317.612.496.15.84.5

CEFTA3.93.53.24.94.444.85.4

Other from OECD11.911.513.612.112.415.214.314.7

Other18.817.916.715.514.112.511.711.5

Imports (by Region, %, 1995-2002)Source: National Statistics Institute

Chart10

37.31.335.54.15.815.9

35.81.5364.55.117.1

37.11.333.74.97.215.7

45.21.524.95.58.114.7

48.40.823.56.4813

440.827.88.77.511.1

49.40.623.77.67.99.5

50.20.718.57.38.913.1

EU

Balkan

CIS

CEFTA

Other from OECD

Other

50.2

49.4

48.4

45.2

37.1

35.8

37.3

44.0

0.7

1.3

0.8

1.5

0.8

0.6

1.5

1.3

18.5

23.5

24.9

33.7

36.0

23.7

27.8

35.5

7.3

7.6

8.7

6.4

5.5

4.9

4.5

4.1

8.9

8.1

8.0

5.8

5.1

7.2

7.5

7.9

13.1

9.5

11.1

13.0

14.7

15.7

17.1

15.9

External Sector

Imports by region

19951996199719981999200020012002

EU37.335.837.145.248.44449.450.2

Balkan1.31.51.31.50.80.80.60.7

CIS35.53633.724.923.527.823.718.5

CEFTA4.14.54.95.56.48.77.67.3

Other from OECD5.85.17.28.187.57.98.9

Other15.917.115.714.71311.19.513.1

99.910099.999.9100.199.998.798.7

MBD00008CFD.xls

Chart10

37.31.335.54.15.815.9

35.81.5364.55.117.1

37.11.333.74.97.215.7

45.21.524.95.58.114.7

48.40.823.56.4813

440.827.88.77.511.1

49.40.623.77.67.99.5

51.10.818.67.38.313.9

51.1

49.4

48.4

45.2

37.1

35.8

37.3

44.0

0.8

1.3

0.8

1.5

0.8

0.6

1.5

1.3

18.6

23.5

24.9

33.7

36.0

23.7

27.8

35.5

7.3

7.6

8.7

6.4

5.5

4.9

4.5

4.1

8.3

8.1

8.0

5.8

5.1

7.2

7.5

7.9

13.9

9.5

11.1

13.0

14.7

15.7

17.1

15.9

Companies with FDI




GreeceINTRACOM

GreeceOTE



USARILA SOLUTIONS

Energy Sector



USAENERGY



AustriaFRANZ WELZ

AustriaSCHENKER

AustriaVAE

GermanyWILLI BETZ

HungaryINTERLICHTER


Tourism




GreeceGOODYS





USAMcDONALDS



BelgiumINTERBREW


GreeceBREWINVEST


GreeceDELTA


FranceDANONE



NetherlandsPROVIMI


SwitzerlandNESTLE


UKLUXCRAFT

UKUNIBUL WINES


USASEABORD OVERSEAS

Textile and Apparel



GermanyROLLMANN


ItalyMIROGLIO

ItalySALVADORI

NetherlandsBRANDEX

TurkeyMASER



BelgiumEPIQ GROUP



GermanyFESTO

GermanyLIEBHERR

GermanySIEMENS



KoreaHYUNDAI






Economic Sectors

Agriculture and Forestry:

Agriculture

Forestry

Industry:

Mining

Manufacturing


Construction

Services:

Structure of GDP

199619971998199920002001

Agriculture and Forestry15.126.218.816.313.913.6

Industry30.727.930.528.229.128.5

Services54.245.950.755.55757.9

Total100100100100100100

1995199619971998199920002001

39.340.144.250.452.151.354.8

8.37.74.64.67.910.87.2

17.919.317.612.496.15.8

3.93.53.24.94.444.8

11.911.513.612.112.415.214.3

18.817.916.715.514.112.511.7


199619971998199920002001

Private55.963.462.46469.671.7

Public44.136.637.63630.428.3

1995199619971998199920002001

37.335.837.145.248.44449.4

1.31.51.31.50.80.80.6

35.53633.724.923.527.823.7

4.14.54.95.56.48.77.6

5.85.17.28.187.57.9

15.917.115.714.71311.19.5


000

000

000

000

000

000


Industry

Services


00

00

00

00

00

00

Private

Public

FDI by country




RussiaLUKOIL PETROL

BelgiumSOLVAY



BelgiumUMICORE

GreeceVIOHALKO



AustriaKNAUF

GermanyYTONG



TradeGreeceENA

AustriaEUROBILLA

GermanyMETRO


AustriaOMV

UKSHELL

market cap


Country

Denmark5.8

Japan9.1

Sweden10.3

Czech10.5

Malta11.2

Liechtenstein12

Israel17.5

Hungary18.8

Ireland23

Luxemburg57.6

Korea59.8

Switzerland105.9

France123.7

Turkey128.5

Spain129.8

United Kingdom196

Netherlands204.8

Russia205.3

Cyprus267.2

USA277

Austria351.2

Belgium415.9

Italy451.4

Greece541.7

Germany563.2



1992034.434.4

19932280.4102.4

1994134.276.7210.9

199526136.6162.6

199676.4180256.4

1997421.4214.8636.2

1998155.8464.2620

1999226.7592.1818.8

2000366635.51001.5

200119670689

2002E800





Trade 3.8%3.8




100





















Transport6.2-11.710.12.77.3

Mining02.702.85.5


Other5.588.899.7122.7316.7

market cap

000

000

000

000

000

000

000

000

000

000

000

Privatisation


Total FDI

FDI by year ($m)

IT profs

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

FDI

Money matters

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

External Sector

1EUR1.95583

BGNEUR




216,567,293.65110,729,099


106,985,814,392.6554,700,978,302

Operating costs






%Number

Latvia0.1927%4597

Estonia0.1443%2054

Bulgaria0.1147%8844



Romania0.0721%16122



Canada0.0607%19181

Israel0.0533%3164

Operating costs

00

00

00

00

00

00

00

00

00

00

&A

Page &P

%

Number

194211

Inflation by month

Periods199719981999200020012002

January2.10%2.40%2.40%0.60%2.70%

February1.30%-0.70%1.10%0.30%1.60%

March0.20%-1.00%-0.30%0.50%0.80%

April0.40%-0.60%-1.00%-0.20%-0.10%

May-1.70%-0.90%0.10%0.10%-2.10%

June1.40%-3.50%-0.90%0.20%-0.10%

July2.50%-0.70%3.40%0.60%-0.20%

August5.50%0.30%0.70%3.00%0.30%

September3.80%3.20%1.50%2.20%1.30%

October0.80%0.30%1.10%1.20%1.70%

November1.00%-0.50%0.50%0.80%0.20%

December0.20%0.40%1.30%0.40%0.60%

Foreign Debt Payments

199619971998199920002001

Payed principal598.5457.4665560.6655994.3

Payed interest480.4439.7529.8484.6515.3526.9

???199619971998199920002001III.20022002

Foreign debt (USD mln)9601.610408.510891.910913.911201.81061610398.310200

199619971998199920002001III.2002

Short-term as % of Gross Foreign Debt10.717.514.511.612.911.410.9

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Inflation

00

00

00

00

00

00

Payed principal

Payed interest

19951996199719981999200020012002

EU39.340.144.250.452.151.354.854.8

Balkan8.37.74.64.67.910.87.27.2

CIS17.919.317.612.496.15.85.8

CEFTA3.93.53.24.94.444.84.8

Other from OECD11.911.513.612.112.415.214.314.3

Other18.817.916.715.514.112.511.711.7

19951996199719981999200020012002

EU39.340.144.250.452.151.354.854.8

Balkan8.37.74.64.67.910.87.27.2

CIS17.919.317.612.496.15.85.8

CEFTA3.93.53.24.94.444.84.8

Other from OECD11.911.513.612.112.415.214.314.3

Other18.817.916.715.514.112.511.711.7

Imports by region

19951996199719981999200020012002

37.335.837.145.248.44449.451.1

1.31.51.31.50.80.80.60.8

35.53633.724.923.527.823.718.6

4.14.54.95.56.48.77.67.3

5.85.17.28.187.57.98.3

15.917.115.714.71311.19.513.9

99.910099.999.9100.199.998.7100

39.38.317.93.911.918.8

40.17.719.33.511.517.9

44.24.617.63.213.616.7

50.44.612.44.912.115.5

52.17.994.412.414.1

51.310.86.1415.212.5

54.87.25.84.814.311.7

54.87.25.84.814.311.7

EU

Balkan

CIS

CEFTA

Other from OECD

Other

37.31.335.54.15.815.9

35.81.5364.55.117.1

37.11.333.74.97.215.7

45.21.524.95.58.114.7

48.40.823.56.4813

440.827.88.77.511.1

49.40.623.77.67.99.5





Corporate tax, %


VAT, %20









Europe0.31-0.41; 0.16-0.21

USA0.74-0.20



3 tariff-reading

pick0.070

day0.043

night0.027

2 tariff-reading

day0.056

night0.027


day0.050

night0.027

Exports (by Country, %, 1999-2002)Source: National Statistics Institute

Chart1

13.914.31515.4

9.99.19.59.5

7.310.28.19.3

8.67.88.89.2

4.54.85.75.3

4.46.14.94.8

3.73.95.64.7

2.72.13.33.4

2.52.42.62.9275004435

1999

2000

2001

2002

2.9

3.4

4.7

4.8

5.3

9.2

9.3

9.5

15.4

Sheet2

Structure of Bulgarian Exports (Country, %, 1999 - 2002)

1999200020012002

Italy13.914.31515.4

Germany9.99.19.59.5

Turkey7.310.28.19.3

Greece8.67.88.89.2

France4.54.85.75.3

Belgium4.46.14.94.8

USA3.73.95.64.7

Spain2.72.13.33.4

UK2.52.42.62.9

Bulgarian Export Growth (%, 1996-2002)Source: Bulgarian National Bank

Bulgarian Exports(by Commodity Groups, 2002)Source: National Statistics Institute

Bulgarian Imports(by Commodity Groups, 2002)Source: National Statistics Institute

Current and Trade Account Deficit/Surplus(% GDP)Source: Governmental Sources and Bulgarian National BankBulgariaCEE Countries (2002)

Chart1

-9

-6.9

-4.8

-4.7

-4.4

-4.4

-3.8

-1.4

Data

Slovakia-9.0

Croatia-6.9

Hungary-4.8

Romania-4.7

Czech Republic-4.4

Bulgaria-4.4

Poland-3.8

Slovenia-1.4

Foreign Trade with the European Union(USD bn, 2001-2005F)

EU

2.7993.583

3.1163.925

3.39754.2282

3.78054.3432

4.01844.4572

Exports (fob)

Imports (cif)

Sheet1 (2)

EU

200120022003F2004F2005F

Exports (fob)2.7993.1163.39753.78054.0184

Imports (cif)3.5833.9254.22824.34324.4572

0.0027990.0031160.00339750.00378050.0040184

0.0035830.0039250.00422820.00434320.0044572

0

Foreign Trade Projections Up to 2005Improving trade balance trade deficit to drop from USD1.3 m in 2001 to USD0.9 mExports will continue to grow, reaching a 29% increase compared to 2002Imports will continue to grow, reaching a 14% increase compared to 2002Exports/imports ratio will increase to 0.82 (from a current value of 0.74)No major changes in commodity groups relative shares of exports and imports

FDI and Business Climate

Foreign Direct Investment(USD m, 1992-2002)Source: Bulgarian Foreign Investment Agency

Inflow of Foreign Investment (by Sector, % and USD m, 1998-2002)Source: Bulgarian Foreign Investment Agency

Chart1

876.4

528.4

340.5

271

255.3

163

148.7

137

120.2

118.9

111.4

88.5

80.2

544.3

Wood products, paper3%. 119

Hotels and restaurants3%. 111

Real estate and business activities2%. 80

Electrical eng., electronics, computers and communication equipment2%. 89

Mechanical products4%. 149

Textile and clothing3%. 120

Food products4%. 137

Mineral products 7%. 255

Metallurgy4%. 163

Petroleum, chemical, rubber and plastic products7%. 271

Telecommunications9%. 341

Trade and repairs14%. 528

Financial activities24%. 876

Sheet1

Financial activities63.8119.1443.2114.6135.7876.4

Trade and repairs177.412489.5117.819.7528.4

Telecommunications23.214.114.9248.839.5340.5

Petroleum, chemical, rubber and plastic products41165.272.1-9.52.2271

Mineral products (cement, glass,...)150.671.87.427.7-2.2255.3

Metallurgy13.272.217.181-20.5163

Mechanical products21.31864.713.231.5148.7

Food products31.532.711.737.423.7137

Textile and clothing4.425.127.357.75.7120.2

Wood products, paper37.324.938.12.915.7118.9

Hotels and restaurants26.840.520.817.95.4111.4

Electrical eng,, electronics, computers and communication equipment11.55.928.628.214.388.5


Other5.588.893.256.363.7544.3

Sheet2

Sheet3

MBD0005073D.xls

Chart4

688.9

462.5

289.8

249.2

229.6

139.7

120.6

118.8

105.6

104.8

90.5

73

465.9

Hotels and restaurants3%. 105

Petroleum, chemical, rubber and plastic products9%. 290

Metallurgy4%. 140

Telecom7%. 230

Mechanical products4%. 121

Food products4%. 119

Wood products, paper3%. 106

Mineral products 8%. 249

Electrical eng., electronics, computers and communication equipment2%. 73

Textile and clothing3%. 91

Other15%. 466

Financial activities22%. 689

Trade and repairs15%. 463

FDI by country











Hotels and restorants26.840.520.816.7104.8Hotels and restaurants26.840.520.816.7104.8









Transport6.2-11.710.12.77.3

Mining02.702.85.5


Other5.588.899.7122.7316.7

FDI by country

688.9

462.5

289.8

249.2

229.6

139.7

120.6

118.8

105.6

104.8

90.5

73

0

Inflow of Foreign Investment by Country(USD m, 1992-2002)Source: Bulgarian Foreign Investment Agency

Chart4

115

128.8

131.4

161.4

201.1

201.6

251.1

266.7

300.6

435.8

482.2

556.9

623.3

652.1

FDI

FDI by country


Country

Denmark5.8

Japan9.1

Sweden10.3

Czech10.5

Malta11.2

Liechtenstein12

Israel17.5

Hungary18.8

Ireland23

Luxemburg57.6

Korea59.8

(14) Spain115

(13) Turkey128.8

(12) France131.4

(11) Switzerland161.4

(10) Russia201.1

(9) United Kingdom201.6

(8) Netherlands251.1

(7) Cyprus266.7

(6) USA300.6

(5) Austria435.8

(4) Belgium482.2

(3) Italy556.9

(2) Germany623.3

(1) Greece652.1


FDI by country

0

0

0

0

0

0

0

0

0

0

0

0

0

0

FDI

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

1

1

1

1

MBD00213F8B.xls

Privatisation (1)Privatisation Lawcompletely new law embodying new philosophystate-owned stakes in some 1,600 enterprises are declared open for privatisationno preferences for employee-management buyoutslimited deferred paymentsconcentration of privatisation process in a specialised body-the Privatisation Agencynew Post-Privatisation Control Agency

Privatisation (2)Privatisation achievements (2002)Biochim BankDZI (insurance)Privatisation achievements (2003)DSK Bank12.8% Bulgartabac on the stock exchangeForthcoming major deals (2003)BTC (telecommunications)Electricity distribution companiesBulgartabac

Privatisation Revenues(EUR m, 1997-2002)Source: Privatisation Agency

Chart5

3090

2560

4090

4120

3420

2190

Privatisation Revenue

Privatisation

All Privatisation Entities, In BGN m

199719981999200020012002

Privatisation Revenue309256409412342219

000000

Privatisation Agency, In BGN m

199719981999200020012002


Privatisation

320264

654435

631580

429160

17258

4917

Whole enterprisese

Specific parts

0

0

Enterprises shares

Specific parts

Number of Deals

01/01-09/04/2001

01/01-09/04/2001

09/05/2001-05/31/2002

09/05/2001-05/31/2002

28

97

47

124

Payments in $m

Payments in BGN m

0

0

0

0

0

0


309

256

409

412

342

219


Business Climate and Reduction ofBureaucracy (1)In June 2003, the Parliament approved the removal of 20.5% (c. 74 out of 360) of the existing licensing, permit and registration regimes, and for the simplification of another 33% (c. 120 out of 360) of themAbout half of the changes have already been implementedA new Law on Administrative regulation and control of commercial activity became in law in June 2003 establishing the new registration and permit regimes and reducing the bureaucracy in the business environment

Business Climate and Reduction ofBureaucracy (2)An upsweep in the activity of the courts with regard to companiesAccording to Transparency International data, in the period 1998-2001 Bulgaria has moved from the 66th to the 47th place in the list based on the international index of corruption perceptions

International Corruption Indicators* Higher figures show improvementTransparency International Index WEF Corruption Subindex RankingSource: Transparency International, World Economic Forum Global Competitiveness Report 2002-2003

EducationBulgarias secondary education is among the best in the world in recent years: 5th in the world in sciences, 11th in mathematics in late 90sBulgarians rank second in international IQ tests (MENSA International)Bulgarians are among the top university students worldwide (2nd in the world in SAT scores)Many students abroadA top-quality MBA (Master of Business Administration) program started in 2003

IT Certified Professionals(Top 10 Countries in % of Population) Source: Global IT IQ Report of March 2002 of Brainbench, Inc. The data for the population is taken from the mid-2001 estimates of U.S. Census Bureau, International Database and The World Factbook, 2000

Chart10

0.0019274597

0.0014432054

0.0011478844

0.0008283559

0.0008232972

0.00072116122

0.000698194211

0.0006171485

0.00060719181

0.0005333164

%

Number

194211

IT profs



%Number

Latvia0.1927%4597

Estonia0.1443%2054

Bulgaria0.1147%8844



Romania0.0721%16122



Canada0.0607%19181

Israel0.0533%3164

IT profs

00

00

00

00

00

00

00

00

00

00

&A

Page &P

%

Number

194211

Electronics & Electrical EngineeringStrategic sector with priority in long-term development programsPotential for more than 200 enterprises with possible specialisation in:Electrical engineering, Computer and office facilities, Electronics, Radio engineering and communication equipment, Household appliances, Defense industrySource: Bulgarian Foreign Investment Agency

Companies with FDI




GreeceINTRACOM

GreeceOTE



USARILA SOLUTIONS

Energy Sector



USAENERGY



AustriaFRANZ WELZ

AustriaSCHENKER

AustriaVAE

GermanyWILLI BETZ

HungaryINTERLICHTER


Tourism




GreeceGOODYS





USAMcDONALDS



BelgiumINTERBREW


GreeceBREWINVEST


GreeceDELTA


FranceDANONE



NetherlandsPROVIMI


SwitzerlandNESTLE


UKLUXCRAFT

UKUNIBUL WINES


USASEABORD OVERSEAS

Textile and Apparel



GermanyROLLMANN


ItalyMIROGLIO

ItalySALVADORI

NetherlandsBRANDEX

TurkeyMASER



BelgiumEPIQ GROUP



GermanyFESTO

GermanyLIEBHERR

GermanySIEMENS



KoreaHYUNDAI








RussiaLUKOIL PETROL

BelgiumSOLVAY



BelgiumUMICORE

GreeceVIOHALKO



AustriaKNAUF

GermanyYTONG



TradeGreeceENA

AustriaEUROBILLA

GermanyMETRO


AustriaOMV

UKSHELL

FDI by country


Country

Germany563.2

Greece541.7

Italy451.4

Belgium415.9

Austria351.2

USA277

Cyprus267.2

Russia205.3

Netherlands204.8

United Kingdom196

Spain129.8

Turkey128.5

France123.7

Switzerland105.9


1992034.434.4

19932280.4102.4

1994134.276.7210.9

199526136.6162.6

199676.4180256.4

1997421.4214.8636.2

1998155.8464.2620

1999226.7592.1818.8

2000366635.51001.5

200119670689

2002E800





Trade 3.8%3.8




100


Sector1998199920002001*Total by sectorsSector1998199920002001*Total by sectors



















Transport6.2-11.710.12.77.3

Mining02.702.85.5


Other5.588.899.7122.7316.7

FDI by country

000

000

000

000

000

000

000

000

000

000

000

Privatisation


Total FDI

FDI by year ($m)

market cap

0

0

0

0

0

0

0

0

0

0

0

0

0

0

FDI

FDI by country ($m)

IT profs

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Operating costs

1EUR1.95583

BGNEUR




216,567,293.65110,729,099


106,985,814,392.6554,700,978,302



%Number

Latvia0.1927%4597

Estonia0.1443%2054

Bulgaria0.1147%8844



Romania0.0721%16122



Canada0.0607%19181

Israel0.0533%3164

00

00

00

00

00

00

00

00

00

00

&A

Page &P

%

Number





Corporate tax, %


VAT, %20









Europe0.31-0.41; 0.16-0.21

USA0.74-0.20



3 tariff-reading

pick0.070

day0.043

night0.027

2 tariff-reading

day0.056

night0.027


day0.050

night0.027

Chart2

73

3065.9

Companies with FDI




GreeceINTRACOM

GreeceOTE



USARILA SOLUTIONS

Energy Sector



USAENERGY



AustriaFRANZ WELZ

AustriaSCHENKER

AustriaVAE

GermanyWILLI BETZ

HungaryINTERLICHTER


Tourism


SwedenRADISSON SAS



GreeceGOODYS





USAMcDONALDS



BelgiumINTERBREW


GreeceBREWINVEST


GreeceDELTA


FranceDANONE



NetherlandsPROVIMI


SwitzerlandNESTLE


UKLUXCRAFT

UKUNIBUL WINES


USASEABORD OVERSEAS

Textile and Apparel



GermanyROLLMANN


ItalyMIROGLIO

ItalySALVADORI

NetherlandsBRANDEX

TurkeyMASER



BelgiumEPIQ GROUP



GermanyFESTO

GermanyLIEBHERR

GermanySIEMENS



KoreaHYUNDAI






Economic Sectors

Agriculture and Forestry:

Agriculture

Forestry

Industry:

Mining

Manufacturing


Construction

Services:

Structure of GDP

199619971998199920002001

Agriculture and Forestry15.126.218.816.313.913.6

Industry30.727.930.528.229.128.5

Services54.245.950.755.55757.9

Total100100100100100100

1995199619971998199920002001

39.340.144.250.452.151.354.8

8.37.74.64.67.910.87.2

17.919.317.612.496.15.8

3.93.53.24.94.444.8

11.911.513.612.112.415.214.3

18.817.916.715.514.112.511.7


199619971998199920002001

Private55.963.462.46469.671.7

Public44.136.637.63630.428.3

1995199619971998199920002001

37.335.837.145.248.44449.4

1.31.51.31.50.80.80.6

35.53633.724.923.527.823.7

4.14.54.95.56.48.77.6

5.85.17.28.187.57.9

15.917.115.714.71311.19.5


000

000

000

000

000

000


Industry

Services

Industry

00

00

00

00

00

00

Private

Public

unemployment

Business Climate

Jan-00Feb-00Mar-00Apr-00May-00Jun-00Jul-00Aug-00Sep-00Oct-00Nov-00Dec-00Jan-01Feb-01Mar-01Apr-01May-01Jun-01Jul-01Aug-01Sep-01Oct-01Nov-01Dec-01Jan-02Feb-02Mar-02Apr-02

5.56.56.2


5.56.56.23.41.32.98.37.711.98.29.58.79.912.91114.517.621.923.324.123.320.323.123.625.123.218.919.9

unemployment

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Sheet2

Unemployment rate


17.218.118.819.018.918.218.318.017.817.817.817.918.518.718.418.517.817.116.816.716.516.717.217.318.017.917.517.8

Sheet2

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0


Average salary


104106114115118117117116123118123129121119125129133133131131135132133142128139135


0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

FDI by country




RussiaLUKOIL PETROL

BelgiumSOLVAY



BelgiumUMICORE

GreeceVIOHALKO



AustriaKNAUF

GermanyYTONG



TradeGreeceENA

AustriaEUROBILLA

GermanyMETRO


AustriaOMV

UKSHELL

market cap


Country

Denmark5.8

Japan9.1

Sweden10.3

Czech10.5

Malta11.2

Liechtenstein12

Israel17.5

Hungary18.8

Ireland23

Luxemburg57.6

Korea59.8

Switzerland105.9

France123.7

Turkey128.5

Spain129.8

United Kingdom196

Netherlands204.8

Russia205.3

Cyprus267.2

USA277

Austria351.2

Belgium415.9

Italy451.4

Greece541.7

Germany563.2



1992034.434.4

19932280.4102.4

1994134.276.7210.9

199526136.6162.6

199676.4180256.4

1997421.4214.8636.2

1998155.8464.2620

1999226.7592.1818.8

2000366635.51001.5

200119670689

2002E9003001200





Trade 3.8%3.8




100





















Transport6.2-11.710.12.77.3

Mining02.702.85.5


Other5.588.899.7122.7316.7

3138.9

Telecom229.6

Other FDI2909.3

Energy

Other FDI

Transport7.3

Other FDI3131.6

Tourism

Food products118.8

Other FDI3020.1

Textile and apparel90.5

Other FDI3048.4

Electrical eng. and electronics73

Other FDI3065.9

market cap

000

000

000

000

000

000

000

000

000

000

000

Privatisation


Total FDI

FDI by year ($m)

IT profs

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

FDI

Money matters

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

External Sector

00

00

00

00

00

00

00

00

00

00

00

Privatisation


22

EU Accession

0

0

tax

0

0

Privatisation

0

0

Operating costs

0

0

1EUR1.95583

BGNEUR




216,567,293.65110,729,099


106,985,814,392.6554,700,978,302






%Number

Latvia0.1927%4597

Estonia0.1443%2054

Bulgaria0.1147%8844



Romania0.0721%16122



Canada0.0607%19181

Israel0.0533%3164

00

00

00

00

00

00

00

00

00

00

&A

Page &P

%

Number

194211

Inflation by month

Periods199719981999200020012002

January2.10%2.40%2.40%0.60%2.70%

February1.30%-0.70%1.10%0.30%1.60%

March0.20%-1.00%-0.30%0.50%0.80%

April0.40%-0.60%-1.00%-0.20%-0.10%

May-1.70%-0.90%0.10%0.10%-2.10%

June1.40%-3.50%-0.90%0.20%-0.10%

July2.50%-0.70%3.40%0.60%-0.20%

August5.50%0.30%0.70%3.00%0.30%

September3.80%3.20%1.50%2.20%1.30%

October0.80%0.30%1.10%1.20%1.70%

November1.00%-0.50%0.50%0.80%0.20%

December0.20%0.40%1.30%0.40%0.60%

Foreign Debt Payments

199619971998199920002001

Payed principal598.5457.4665560.6655994.3

Payed interest480.4439.7529.8484.6515.3526.9

???199619971998199920002001III.20022002

Foreign debt (USD mln)9601.610408.510891.910913.911201.81061610398.310200

199619971998199920002001III.2002

Short-term as % of Gross Foreign Debt10.717.514.511.612.911.410.9

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Inflation

00

00

00

00

00

00

Payed principal

Payed interest

1995199619971998199920002001

EU39.340.144.250.452.151.354.8

Balkan8.37.74.64.67.910.87.2

CIS17.919.317.612.496.15.8

CEFTA3.93.53.24.94.444.8

Other from OECD11.911.513.612.112.415.214.3

Other18.817.916.715.514.112.511.7

1995199619971998199920002001

EU39.340.144.250.452.151.354.8

Balkan8.37.74.64.67.910.87.2

CIS17.919.317.612.496.15.8

CEFTA3.93.53.24.94.444.8

Other from OECD11.911.513.612.112.415.214.3

Other18.817.916.715.514.112.511.7

Imports by region

1995199619971998199920002001

EU37.335.837.145.248.44449.4

Balkan1.31.51.31.50.80.80.6

CIS35.53633.724.923.527.823.7

CEFTA4.14.54.95.56.48.77.6

Other from OECD5.85.17.28.187.57.9

Other15.917.115.714.71311.19.5

99.910099.999.9100.199.998.7

000000

000000

000000

000000

000000

000000

000000

EU

Balkan

CIS

CEFTA

Other from OECD

Other

000000

000000

000000

000000

000000

000000

000000

EU

Balkan

CIS

CEFTA

Other from OECD

Other

CyprusLithuaniaSloveniaCzech RepublicHungaryLatviaSlovakiaEstoniaPolandMaltaBulgariaRomania

Provisionally closed chapters282827272625252424222011

Opened chapters22334556681013

00

00

00

00

00

00

00

00

00

00

00

00

Provisionally closed chapters

Opened chapters

20

19921993199419951996199719981999200020012002

Highest personal income rate (%)40%50%50%50%50%40%40%40%40%38%29%

0

0

0

0

0

0

0

0

0

0

0

Highest personal income rate (%)

Privatisation deals

Number of concluded privatisation deals

199719981999200020012002

Whole enterprisese32065463142917249

Specific parts2644355801605817

Number of deals

01/01-09/04/200109/05/2001-05/31/2002

Enterprises shares2847

Specific parts97124

Payments

Payments in BGN m

01/01-09/04/200109/05/2001-05/31/2002

Payments in $m208.5391.3


All Privatisation Entities, In BGN m

199719981999200020012002


Privatisation Agency, In BGN m

199719981999200020012002


199319941995199619971998199920002001V.2002

0.371.671.074.0918.364.4816.974.430.970.37

199319941995199619971998199920002001V.2002

0.42.03.17.225.630.047.051.452.452.8

Average Foreign Direct Investment per Year (USD m)

1997-20012002-2006

Average Foreign Direct Investment per Year ($ m)600950

Average Foreign Direct Investment per Year in USD

1997-20012002-2006

Average Foreign Direct Investment per Capita74121

00

00

00

00

00

00

Whole enterprisese

Specific parts

0

0

bgdream:

Enterprises shares

Specific parts

Number of Deals

0

0

0

0

Payments in $m

Payments in BGN m

0

0

0

0

0

0


0

0

0

0

0

0


0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Average Foreign Direct Investment per Year ($ m)

Average FDI per year

0

0

Average Foreign Direct Investment per Capita

Average FDI per capita





Corporate tax, %


VAT, %20









Europe0.31-0.41; 0.16-0.21

USA0.74-0.20



3 tariff-reading

pick0.070

day0.043

night0.027

2 tariff-reading

day0.056

night0.027


day0.050

night0.027

MBD00213F8B.xls

IT and TelecomsCross-point for telecommunications traffic from Europe to the Middle East and AsiaRegulatory framework harmonized with EU standardsBy rate of development in 2000, Bulgarian market for mobile telephone services ranked 5th among CEE countries; over 2m mobile phone subscribersTelephone switch exchange manufacturing presents another opportunitySource: Bulgarian Foreign Investment Agency

Companies with FDI




GreeceINTRACOM

GreeceOTE



USARILA SOLUTIONS

Energy Sector



USAENERGY



AustriaFRANZ WELZ

AustriaSCHENKER

AustriaVAE

GermanyWILLI BETZ

HungaryINTERLICHTER


Tourism




GreeceGOODYS





USAMcDONALDS



BelgiumINTERBREW


GreeceBREWINVEST


GreeceDELTA


FranceDANONE



NetherlandsPROVIMI


SwitzerlandNESTLE


UKLUXCRAFT

UKUNIBUL WINES


USASEABORD OVERSEAS

Textile and Apparel



GermanyROLLMANN


ItalyMIROGLIO

ItalySALVADORI

NetherlandsBRANDEX

TurkeyMASER



BelgiumEPIQ GROUP



GermanyFESTO

GermanyLIEBHERR

GermanySIEMENS



KoreaHYUNDAI








RussiaLUKOIL PETROL

BelgiumSOLVAY



BelgiumUMICORE

GreeceVIOHALKO



AustriaKNAUF

GermanyYTONG



TradeGreeceENA

AustriaEUROBILLA

GermanyMETRO


AustriaOMV

UKSHELL

FDI by country


Country

Germany563.2

Greece541.7

Italy451.4

Belgium415.9

Austria351.2

USA277

Cyprus267.2

Russia205.3

Netherlands204.8

United Kingdom196

Spain129.8

Turkey128.5

France123.7

Switzerland105.9


1992034.434.4

19932280.4102.4

1994134.276.7210.9

199526136.6162.6

199676.4180256.4

1997421.4214.8636.2

1998155.8464.2620

1999226.7592.1818.8

2000366635.51001.5

200119670689

2002E800





Trade 3.8%3.8




100


Sector1998199920002001*Total by sectorsSector1998199920002001*Total by sectors



















Transport6.2-11.710.12.77.3

Mining02.702.85.5


Other5.588.899.7122.7316.7

FDI by country

000

000

000

000

000

000

000

000

000

000

000

Privatisation


Total FDI

FDI by year ($m)

market cap

0

0

0

0

0

0

0

0

0

0

0

0

0

0

FDI

FDI by country ($m)

IT profs

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Operating costs

1EUR1.95583

BGNEUR




216,567,293.65110,729,099


106,985,814,392.6554,700,978,302



Documents

Invest in New Bulgaria