Interview of Novinite.com (Sofia News Agency) with Christos Mouroutis, Chairman of the Bulgarian Land and Property Owners Association (BULLPOA), and founder and Managing Partner at Arceland, an asset management fund based in Sofia, Bulgaria.

How and why did you start an asset management business in Bulgaria?

I have been in Bulgaria for 12 years and together with my partners from Arceland we have brought investments of over EUR 400 M to Bulgaria from 2002 until now.

Before 2007, when we set up Arceland, we completed many large-scale projects connected to land investment and consolidation.

Throughout that period, we made profits, we paid all due taxes, we set an example with our behavior and, what is most important, we channeled a huge inflow of investments into the country, which we keep doing for the seventh year in a row.

On a professional basis, we promote opportunities, we actively advertise the country for new projects and we succeed in attracting investors.

Other companies are based abroad and Arceland's office is in Bulgaria, would you say that this is a problem or an advantage?

Everybody else is in London, in Warsaw, in Switzerland, etc and they visit the country or they have a little office, let us say, a project office. We are located here and we raise our money here with a basis in this country and this is the most important. We selected Bulgaria to be our basis, like Equest did in the past, but Equest is not active any more.

We have selected this country. We do private funds. We prefer that to the stock exchange because stock exchange helps you one day and kills you the other day. We prefer to make safe steps continuously, advancing step by step.

Our team believes that it has succeeded in something that is of primary concern for Bulgaria. We raise money that come into the Bulgarian investment system and we believe that now, with the growth of the market, we will be able to raise more and more. In this way, we support in this way the Bulgarian economy.

Why did you decide to set up the Bulgarian Land and Property Owners Association?

The reason we set up BULLPOA was not to protest against the existing problems in Bulgaria but to support the Bulgarian government with ideas so that it can make more effective laws that can generate better revenues for the state amidst smaller conflicts.

The first problem we encountered was that of the waste treatment tax. The regulation was absolutely unfounded. What it did was to encourage tax fraud in land deals. Under a widespread illegal practice, the actual value of the purchased land or property was downsized to evade the payment of the unjustifiable waste treatment tax.

Another reason why this was a misstep is the fact that land plots do not generate waste. Buildings generate waste, and buildings inhabited by people in particular. In other countries, this tax was calculated as a percentage of power consumption.

What measures have you proposed to rectify this problem with the waste treatment tax?

My proposal was for that solution to be included into a new law in Bulgaria. We proposed it as an association. The government has now come to realize that this is a problem plaguing both small and large-scale investors, and is about to iron it out through a draft bill that is currently under consideration.

The step will instantly give municipalities more money, which will be easier to collect because of the justifiable amount of the tax and the transparent method of calculation. We are thankful that the government gave due consideration to our stance on the matter.

What other activities does BULLPOA deal with?

Another initiative of BULLPOA is related to the implementation of EU energy efficiency regulations, which Bulgaria has translated into somewhat less than functional local legislation.

BULLPOA, with its 200-plus members, tries to make sure that the tax rates are favorable for investors, at the same time providing sufficient inflows into the municipal budgets. In this respect, the association is fighting for a lawful and balanced tax policy, stating its case in a unified voce.

BULLPOA highlights the importance of land consolidation measures by the government to facilitate investments and boost agricultural productivity.

With its activities, the association seeks to be of service to small land owners, to landlords and the government. For that purpose, it is an active mediator between the state, the municipalities, the landowners and other interested parties.

How would you assess your work with Bulgaria's local administration?

The local authorities in Bulgaria are an excellent partner which continues to improve. The overall aim is to streamline dialogue between organizations and municipalities in a bid to detect problems more easily.

Arceland has never been invited into corruption schemes, regardless of the numerous complex projects that it works on and the host of contradicting interests involved.

Bulgaria's image abroad need polishing and the existing derogatory associations with a "mafia state" need to be obliterated. The InvestBulgaria agency must be supported in its efforts to make Bulgaria a better brand name.

It is not all about the 10% tax rate. A major feature of Bulgaria that needs to be promoted is the high level of security in the country and low crime rate. You can not find that elsewhere in the EU.

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