ABOUT BULGARIA

Bulgaria is a quiet, and largely rural country in SE European about the size of England but with a population of only around 8 million. For years Bulgaria has been a favoured holiday destination for Eastern Europeans, but only in recent years has it opened its doors to the rest of the world. Its mountains, beaches and old-fashioned rural tranquility offer a glimpse of Europe which has long since disappeared under the noise of traffic and concrete in western Europe.Since the introduction of the currency board in 1997 Bulgaria has been politically stable country with a developing economy and the preferential conditions and guarantees for foreign investors have generated excellent business opportunities and investment growth potential. Bulgaria real estate prices are by far lower than other destinations in Europe but the estimated acceptance of Bulgaria in the European Union provides unprecedented growth potential that will certainly boost the prices of the Bulgaria real estate in the near future. Bulgarian market or real estate is still unexplored and undeveloped to a certain extent, which makes it very attractive and profitable.Further Bulgaria was invited to become a NATO member targeted for 2004 and full EC membership is scheduled for 2007. Now is the right time to invest in property in Bulgaria.Bulgaria is a politically stable country, and the introduction of a currency board in 1997 stabilised the country's economy. Reaching year of 2007, Bulgarian laws are improving and changing in accordance with the laws in the countries of the European Union. Bulgaria has one of the most liberal foreign investment laws in the region. Foreign investment typically assumes one of the following forms: establishing a joint venture with existing companies, state-owned or private; acquiring a company through privatization; setting up a new (green field) venture; or making a portfolio investment. One of the poorest countries of central Europe, Bulgaria has slowly been moving from its old command economy towards a market-oriented economy. The economy faced a major crisis in 1996, marked by a banking system in turmoil, a depreciating currency, and contracting production and foreign trade.
Foreign exchange reserves dwindled to $518 million, while dramatically hiked interest rates added to the domestic debt burden and stifled growth. GDP fell by 11% in 1996, after experiencing 2.0% growth in 1995. Privatization of state-owned industries stagnated, although the first auction of a mass privatization program was undertaken in late 1996. Lagging progress on structural reforms led to postponement of IMF disbursements under a $580 million standby loan agreed to in July 1996.
In November 1996, the IMF proposed a currency board as Bulgaria's best chance to restore confidence in the lev, eliminate unnecessary spending, and avoid hyperinflation. The board was set up on 1 July 1997. Its establishment was followed by a reduction in inflation and interest rates and by a rise in foreign investment. Simultaneously the government pledged to sell off some of the most attractive state assets.
GDP in 1997 dropped 7.4%, but is expected to rebound to an estimated 2% in 1998. Other government objectives include: the completion of land reform, the privatization and strengthening of the banking system, and the modernization of the legal environment of business.

La pagina e stata aggiornata il: 02/07/2007