VETO ON PRIVATIZATION ACT TO DELAY KEY PRIVATIZATION DEALS

Business | March 7, 2002, Thursday // 00:00

The veto on the Act on privatisation and post-privatization control on behalf of the President will delay the sale of the Bulgarian Telecommunications Company (BTC) and will lead to a reduction in the Telecom price, Transport Minister Plamen Petrov commented. “The sending back of the act to Parliament is an extremely negative signal to the investors concerning the development of the privatisation in general and the intention of the state to privatise its largest companies, “ Deputy Transport Minister Nikolay Nikolov commented. According to him, the veto will make impossible the granting of third GSM license to the Bulgarian Telecommunications Company (BTC). The veto on the privatization act will delay the privatization of Bulgaria's tobacco monopoly Bulgartabac with two weeks, while the sale of BTC will be slown down with one month, according to the Privatization Agency. The European Bank for Reconstruction and Development as well as the International Finance Corporation, a structure within the World Bank have shown interest in the privatization of the Bulgarian Telecom, the transport minister announced. The institutions offer EUR 100 M and are ready to support financially a potential buyer, to credit the modernization of the company or to partner BTC during the deal.
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