[Intl-tobacco] IMF Official Says Bulgaria Needs to Privatize Tobacco Co.

[Robert Weissman]

12 May 2003

IMF official says telco, tobacco monopoly sale failures will hurt Bulgaria's
economic performance

SOFIA (bnn)--The head of the International Monetary Fund mission for
Bulgaria said
Monday the government's failure to privatize state telecommunications
company BTC
and tobacco monopoly Bulgartabac would hurt Bulgaria's economic performance.

"The privatization deals are not of so big importance for the financial
needs of
the government but are essential to increase the efficiency of the
economy," Jerald
Shiff said after talks with Finance Minister Milen Velchev.

Both deals in question have fallen apart in the final phases before their
conclusions triggering comments that the government is risking to scare away
foreign investors.

Velchev and Shiff made a regular review of Bulgaria's performance under
an IMF
two-year $300 million lending deal with Bulgaria.

Shiff praised the government for increased fiscal revenue collection in
the first
quarter.

He also discussed with Velchev a possible leva (BGN)130 million
government subsidy
to bail out debt-ridded municipal administrations. /bnn/