Bulgaria, the country of the golden sands

Our partner on the way towards the European Union

When you say Bulgaria, you don’t say only the Golden Sands, but you enumerate a series of new resorts turned up at the Black Sea side. When you say Bulgaria, you say Kozlodui. When several Romanians that aren’t anymore at the first youth speak about Bulgaria, they remember about the evenings they’ve spent in company of the Bulgarian television, when the children knew how to say “Good night, kids” in the language of the neighbors from South of the Danube.

The international political context wanted that our countries to go together towards the European Union, each being submitted to the maturity proves imposed by Brussels in order to set up the current large family of the 27. At January 1, 2007 the adhesion happened. But also now, at one year and a half from the celebrated event, at that time, with fireworks, parties and good time, Romania and Bulgaria are still regarded at “package”.

“Romania and Bulgaria have joint EU much too early and now they are the problematic children of EU, which, although should adopt more hard measures against those two countries, it doesn’t because however it needs their help”, Die Welt wrote, at four years from the 2004 enlargement. Not to speak about that Romania and Bulgaria are always comparative when it comes about the performances in the domain of tourism, the conclusion being in most of the cases favorable for the neighbors from South.
“It’s cheaper, the services are significantly better, the seaside offers a greater diversity of locations, from the traditional ones which don’t differentiate of the rest of the ones from the Romanian seaside of the Black Sea, till new small resorts, quite, intimate, but with all the standard comfort”, it’s the conclusion of all. Different said, Bulgaria has learnt to do a profitable tourism.

Economical advantages

It’s not the only example where Bulgaria has struggled for its interests and has won. Till the visit from January of Vladimir Putin, then president of Russia, at Sofia, the destiny of the gas pipeline „South Stream” was uncertain. Sofia denied participating at the project in terms of Gazprom, as minority partner. It wanted to be equal to Gazprom, to own 50% of the joint company created for realizing the tube directed to diversify the ways of supplying Europe with gas and to increase the volume of deliveries. And it won. It received 50%, becoming an important player for the power market of Europe, the statute which assures the economic advantages and the political best cards. Especially that Bulgaria is part of another European power project – oil pipeline Burgas-Aleksandropolis, also realized with Gazprom. Moreover, it is among the countries involved in the big European pipeline Nabucco. There are three moments which, if now don’t mean anything for the country’s budget, will substantially contribute to the increase of the country’s welfare.

Demographic aspects

Recently, the French daily, “Le Figaro”, asked if till 2006, the population of Bulgaria, which counts about 7,6 million inhabitants, will diminish with more then a quarter, till 5,1 million, as that the forecasts of the National Institute of Statistics state. According those, the population of the small Balkan state continues to decrease since 1988, when the country counted 8,9 million inhabitants. And the measures taken by the government in favor of increasing the rate of birth didn’t have for the moment the staked effect. Among others, besides reducing the number of births, Bulgaria will have to face the process of growing old of its population, as most of the European countries. According to the calculation of the institute above mentioned, the number of the persons with the age of retirement will reduce from 63% in 2010, to 50% in 2090. Concomitantly, the proportion of retirement will pass from 23%, in 2010, to 37%, in 2060. In economical plan, the priorities of the program of convergence of Bulgaria aims three big goals, respectively maintaining of a sustained rhythm of economic increase, keeping a severe monetary policy and calming the inflation pressures and reducing the deficit of current account.

Banking activity

A number of 28 institutions carry on banking activities in Bulgaria. Five of them have statute of subsidiaries of a foreign bank. Once ended the privatizations , the evolution of the segment is marked now by mergers and acquisitions.In January 2008, the assets
of the banking systems were of 29,14 billion euro;From the beginning of the year, over 3.000 ATMs were installed in the entire country; Over 1,5 million Bulgarians resort to the banking services; Three banks had in 2007, a record progress of their benefits: Investbank (+500%), Municipal Bank (+300%) and Commercial Bank (+250%).With assets amounted to 4.645 million euro, Unicredit Bulbank (Bulbank + HVB Bank Biochim + Hebros) ended 2007 on the first position among the banking institutions.
The second position came to DSK Bank, with 4.012 million euro, on the third position being situated United Bulgarian Bank – UBB,
with 3.134 million.

Income related to the …city

The consultancy company Industry Watch realized a study of the incomes at the level of the managers of medium companies from Bulgaria. According to the effectuated calculations, for the same work the employees of the leader towns of rating – Sofia, Burgas and Varna – are rewarded with 100, 95,6 and, respective, 94,6 leva. To Plovdiv, the second urban area as dimension, the incomes are on average with 20-30% smaller then the ones practiced in te capital. The smallest incomes (about 60 leva) are especially in the localities from the north-west of the country, Vidin, Montana and Vrata.

Inedited hospitality

Don’t be surprised to hear everywhere “merci”, wrote a tourist site, familiarizing the tourists which want to arrive in Bulgaria with the particularities of this country. “The origin of using this term dates from the end of XIX century, when knowing French was a sign of distinction in the new bourgeois society of Bulgaria at that times”, the quoted source said. In the same time another site warned don’t feel insulted if you’ll hear expressions such as please, pardon, or beg you. It isn’t a prove of indecorum. The Bulgarians are direct people, and the cordiality, friendship, hospitality they prefer to express in other circumstances – especially at dinner and especially if they are hosts. The welcome, attention and concern which will surround you will let you “with the mouth open wide””, the respective site noted.

The rhythm of increase of the prices for houses has slowed down in the first six months of the current year against the similar period of 2007. According to Global Property Guide, in the interval mentioned the real estate assets have increased in price with 15,2%, Bulgaria loosing, thus, the first positions occupied in the last quarter of last year, when the price increases have exceeded 30% and so reaching on the six position. One of the decisive factors which directed to the slowing down of this rise in price was the high level of the inflation, consequence of increasing the banking interests, as also the world subprime crisis and the escape of the foreign investments. Despite all these, the market of the mortgage credits has a beautiful development. The last information shows that this domain has increased, in the interval during 2004 and 2007, with almost 90%, evolution which confirms according to the analysts, the statute of a country with a good investment potential. According to the statistic data for last year, Bulgaria has displayed the most significant increase of the housing market from the world. The RNCOS report, leader in valuation and studying the housing conjuncture, state that, among others the Bulgarian mortgage market has touched one of the highest rhythms, the volume for the granted loans in 2007 for purchasing houses raised to 2,5 billion euro. Comparative with the steady real estate markets, the Bulgarian one is in the first stage of its development. In the same time, Bulgaria extends its option range for the mortgage products.

General data

Surface – 110.910 square kilometers;
Capital city – Sofia;
Population – about 7,6 million inhabitants;
Gross Domestic Product– 40,19 billion in 2007, with the forecasts of 48,43 in 2008 and 49,30 in 2009;
GDP per inhabitant – 11.155 dollars in 2007, with the forecasts of 12.142 in 2008 and 13.249 in 2009;
The inflation rate– 8,2% in 2007, forecasts for 2008 of 7,8% and of 5,2% for 2009.