Another delay of the deal over the Bulgarian Telecommunications Company BTC would hurt Bulgaria's economy, Viva Ventures, which was first selected a preferred buyer said in a statement circulated to the media.

According to Viva Ventures BTC needs urgent privatisation so that it could cope with the challenges of the liberalized telecommunication market in Bulgaria.

The statement says that both BTC's stuff and clients would very well accept the privatisation. However, the decision of the Supervisory Board of the Privatisation Agency would have very bad effect mainly on international trust in Bulgaria.

The doubts in Bulgaria's reputation could impede Bulgaria's ability to attract foreign capitals, which could affect her future EU entry, US private equity firm Advent's director Chris Mruck said.

Earlier in the day the Supervisory Council of Bulgaria's Privatisation Agency returned the deal for the sale of 65% stake in BTC to the Executive Board of the sale body. As a main reason was pointed out that Viva Ventures has not presented a declaration, as required by the Privatisation Act. The supervisors also demanded that the Executive Board initiate negotiations and ratify a new sale contract with Viva Ventures, featuring new parameters.

The legal consultant of the all-Turkish consortium Koc Holding/Turk Telecom Sergey Penev declined any comments.