Home

Tuesday.

Enter content here

Japan Gives Bulgaria $100 Million for the Underground. In 2006 the Underground in Sofia will reach 'Dragan Tsankov' Blvd., Sofia Mayor Stefan Sofiyanski said. Yesterday foreign minister Solomon Passy and Japanese ambassador to this country Yasuyoshi Itsihashi signed an agreement for a $ 100 million loan for the construction of the underground section. Photo Nikolai Donchev

Parvanov Visits Belgium. Belgian King Albert II (R) welcomes Bulgarian President Gueorgui Parvanov at the Royal Palace in Brussels, February 5. cEPA

Midfielder Vs. Defender. Bulgarian midfielder Krassimir Balakov (L) of Stuttgart struggles for the ball with Czech defender Marek Nikl of Nuremberg during their German Bundesliga soccer match in Stuttgart, February 5. cEPA

Slavcho Batinkov, of Bulgaria, makes his way on the cross country track as he works out in preparation for the Winter Olympics Tuesday, Feb. 5, 2002, at Soldier Hollow in Heber City, Utah. The Winter Olympics open on Feb. 8. (AP Photo/Andrew Medichini)

MIA

Tetovo, February 5 (MIA) - A passenger vehicle, driving via Tetovo-Skopje Highway was fired upon Monday, at about 3:40 p.m. One of the gunshots hit the car. Fortunately, none of the passengers got injured, reported MIA's correspondent from Tetovo.

The incident was reported to the Police Department in Tetovo. An expert team removed the bullet from the vehicle on Tuesday.

MIA

Skopje, February 5 (MIA) - A Macedonian Army soldier and a civilian from the village of Krivolak got injured Monday at about 5:50 p.m. in an incident in the area of Krivolak training grounds, reads the statement of the Macedonian Army General Staff.

The incident occurred when the MA police patrol encountered a group of civilians with two carts, loaded with timber.

In accordance with the MA Service Regulations and the Guardian Security Document, the police patrol urged this group to stop. Since the command was not obeyed and kept approaching the patrol, the soldiers fired a warning shot in the air. The group ignored the warning shots and kept driving, intending to attack the soldiers. One of the soldiers suffered injuries, being run over by the carts. In response to this attack, the other soldiers, members of the patrol, fired three shots. Thereby, one of the attackers, S.Sh. from Krivolak, was wounded in the leg.

In the meantime, the Chief of Staff on duty came on-site. He gave first aid to the injured soldier and the wounded civilian. Thereafter, they were both transferred to the medical Center in Negotino. After medical treatment, the MA soldier was hospitalized in a military hospital, while the civilian was held in the Medical Center in Negotino, reads the statement of MA General Staff.

MIA

According to the information from the Ministry of Foreign Affairs, the Macedonian Government made a decision to extend the mandate of NATO's forces for three (plus three) months, spokesman Gjorgji Trendafilov said Tuesday after the session of the Government.

He informed that probably on Tuesday or on Wednesday, Macedonian Prime Minister Ljubcho Georgievski would speak to NATO Secretary General George Robertson.

Explaining why the mandate has been extended to three (plus three) months, Trendafilov said that after the "completion of the three-month arrangement between Macedonia and NATO, due to the objective reasons the work will be halted in several parliaments of the EU and NATO member countries, which also participate in the mission, so it would be very hard to establish any bilateral communications."

"The extension of the mandate for another three months is what can be realistically done, with an option for further consultations to be held between Prime Minister Georgievski and Ministry of Foreign Affairs," Trendafilov said.

He believes that the final decision in regard with the extension of NATO's mandate will be reached after the forthcoming visit of NATO Secretary General George Robertson to Skopje.

Trendafilov informed that the process of police redeployment in the crisis regions was not discussed at the session, although the information on extending NATO's mandate includes elements of the re-entry of the police units.

According to Trendafilov there is not precise information when the police redeployment would end, as the realization of the General plan, which should be carried out in 55 days, "would depend on the flexibility."

He also announced that "the price for accommodation in the students dormitories will not increase for 50 percent."

According to him, the Government will try to find a way for amortizing that lack of finances that emerged in the past seven-eight years and to improve the students' accommodation.

Upon the proposal of the Ministry of Education and Science, the Government has made a decision a public debate to be held at the Universities prior to the adoption of draft on changes and supplements to the Law on high education.

Asked whether the dismissal of Minister of Education and Science Nenad Novkovski was requested, Trendafilov said that it was not discussed.

Regarding the last-week developments in Negotino's Gymnasium, Trendafilov said that "the students in the school were manipulated," and expressed hope that "such scenes would not happen in the future." "We should see the legal ending of the case," he added.

In regard with the loss making companies, Trendafilov said that the "Government has an intention to solve the problem with the loss making companies in general terms, and priority will be given to the future of the employees."

According to Trendafilov, "there are some obstructions in the existing Law on loss making companies, as financial payments are envisaged only for one group of employees, while for most of them only social packages and other measures from the government will be provided until they are re-employed or retired.

MIA

"European Bank for Reconstruction and Development (EBRD) will continue to support Macedonia, and the realisation of the projects, which are financed by this institution, will continue with the same tempo", EBRD President Jean Lemierre said after today's meeting with Macedonian President Boris Trajkovski and Finance Minister Nikola Gruevski in New York.

During the talks, the Macedonian President asked EBRD to participate at the donors' conference for our country, and Minister Gruevski presented the projects for establishment of a bank for micro financing and national payment card, which Lemierre fully supported. EBRD is interested for entrance in "Macedonian Power Company".

At the meeting with UN High Commissioner for Refugees Ruud Lubbers, President Trajkovski asked UNHCR for active participation in the return of displaced persons in the Republic of Macedonia and the second phase of reconstruction of damaged objects. Lubbers promised that he would talk with European Commission representatives and Euro-Commissioner of Foreign Relations Chris Patten, in order to provide more means for the donors' conference. Trajkovski asked UNHCR to have a developing function, rather than a humanitarian one in the post-transitional period i.e. July 1, 2002.

Trajkovski, Gruevski and Casule will set out for Washington on Monday at noon, local time.

As scheduled, the Macedonian delegation will have several important meetings with some representatives of the US administration.

In the afternoon, local time, President Trajkovski will meet with US Secretary of State Colin Powell. In the following several days in Washington, the Macedonian officials will have talks with President Bush's National Security Adviser Condoleezza Rice, as well as with some representatives of the House of Representatives and the Senate, in charge of the foreign policy.

Regarding the scheduled donors' conference for Macedonia on March 12th in Brussels, the Macedonian President and his associates in the sphere of economics are to hold meetings with Horst Khler, Managing Director of the International Monetary Fund (IMF), and James Wolfenson, President of the World Bank.

At the meetings with representatives of the International Monetary Fund and of the World Bank, Macedonian Minister of Finance Nikola Gruevski is expected to negotiate with the World Bank representatives on the PSMAK arrangement, on reforms in the public administration, to discuss the Law of Bankruptcy, the unprofitable companies and some other details from the FECAL 2 arrangement for reconstruction of the banking and of the enterprises.

Due to the discussions on the FECAL 2 arrangement, the Macedonian Minister of Economy, Besnik Fetai, and the Vice - Premier Zoran Krstevski will also arrive to Washington during the day.

Minister Gruevski also had a meeting Monday with Bulgarian Finance Minister Milen Emilov Velcev, at which they exchanged experiences on the introduction of the fiscal machines, as well as the role of consultant house "Crown Agents", which is specialised for more efficient organisation of the customs, which has been already engaged in Bulgaria.

Except for his regular tasks, Gruevski had significant bilateral meetings with the Finance Ministers of Serbia, Slovenia, Bulgaria and Turkey, with high representatives of recognized banks and companies, as well as with the Dutch Minister of Development, Evelien Herfkens.

Gruevski accompanied President Trajkovski at most of his meetings, such as the meeting with the EBRD Chairman, Jean Lemierre, the Deputy Chairman of the Ex-Im Bank, Eduardo Aguirre, the Romanian Prime Minister, the President of Poland, the President of Slovenia and the Minister of Foreign Affairs of Switzerland.

The main topics at the discussions were: the situation in the country, the political and economic perspectives for Macedonia, the reforms undertaken by the Government, projects in process that require support, exchange of experiences, joint projects, as well as the upcoming donors' conference for Macedonia.

The organizer arranged several informal gatherings for the participants of the Forum. One of the most interesting evenings was the New York Bourse of informal acquaintance. The meetings were very useful, as many of the contacts established will result in development of already arranged contracts.

Minister Gruevski had an opportunity to meet also with some Macedonians from the American Diaspora.

MIA

The meeting of the Prime Ministers of the Central European Initiative (CEI) member-countries will be held in November is Skopje, while the meeting of the Foreign Ministers will be held by the end of June in Ohrid.

This was announced at Tuesday's press conference after the two-day meeting of CEI national coordinators has ended.

Along with CEI Summit also a Economic Forum will be organized, where it is expected around two thousand businessmen to take part.

According to Macedonia's national coordinator for CEI Jon Ivanovski, also specialized meetings of the ministers of culture are envisaged for June, of the ministers for information and media for May 23 in Belgrade, as well as of the ministers of agriculture and interior affairs that will be held in the second part of 2002.

"The agenda of this meeting was large and aimed to make a U-turn in the organization of the internal operations of CEI i.e. to revive the working groups, which are inactive and to make preparations for the most important meetings in the course of 2002," Ivanovski said. He added that they also discussed the Summer School for architecture and the Gathering of young musicians in Ohrid as well as the new projects referring to the transport and environment.

According to Ivanovski, those projects referring to the transport corridors in the country would also consider the environmental protection, which is standard in many countries.

"At the donor's conference that would be held in March in Brussels, CEI would grant 600,000 for financing the project 'Center for business consulting,' which should be open in Skopje. The project amounts to 1,2 million," Ivanovski said.

Newly appointed Director General of the CEI - Executive Secretariat from Trieste, Austrian Ambassador Harald Kreid also participated at the two-day meeting.

Expressing satisfaction from the work, Kreid said that the opportunity Macedonia to chair with this institution is "a burden and responsibility, but also a chance for its more transparent representation before the other seventeen CEI member-countries."

Kreid emphasized that this organization has two goals - to support the countries in the transition and their functioning as a state and within the economic development and the other one to assist the aspirant countries for gaining membership in the European Union.

This is a first meeting of the CEI national coordinators since Macedonia has taken over the CEI presidency from Italy.

Standartnews

"We have to change the accession deadline," the president maintains.

Milena Orozova

"The EU integration processes have to be accelerated, which means to search for earlier terms of joining the EU," President Gerogi Parvanov said yesterday after the first sitting of the Consultative National Security Council was held. The head of state did not commit himself to fixed dates though he pledged to do it in a few months. "The former government termed 2004 for closing the negotiations and 2007 for genuine membership," Parvanov reminded. "We should find a way to squeeze into the 2002-06 financial framework which is being drafted at present in Brussels," the president said. Otherwise Bulgaria will have serious troubles, he believes. At the sitting, the problems of the judicial system, administrative reform and energy policy were discussed as well. To Parvanov, the executive power was serious as considering the observations of the EC report.

Standartnews

The minister wants to frustrate the Bourgas port enlargement, maintain both the UDF and BSP deputies.

Elena Dimitrova

Bourgas deputies both from BSP and UDF threatened to ask the resignation of Transport Minister Plamen Petrov for the scandal with the frozen enlargement of the local port, it transpired after yesterday's meeting of MPs from all kinds of political forces in Bourgas. To Lyubomir Panteleev - BSP MP, the probable stoppage of the joint Bulgarian - Japanese project for enlargement and building of new cargo terminals will be a key strike against Bourgas. The minister of transport used as a formal ground the problem with the arms being on the gulf's bottom, aiming to stop the project. The actual reason, however, are huge economic interests, backed up by the Varna lobby both in the Council of Ministers and in the Parliament, well-informed sources maintain. As early as September 2001, certain deputies from Varna had insisted the Japanese loan to be re-directed from Bourgas to Varna.

Standartnews

The Social Ministry threatened to stop giving aids to poor people with unpaid bills.

Victoria Serafimova
Venelina Yanakieva

All residents of Sofia could pay 5% lower bills for electricity today. This will be possible only if they go to the newest office of the 'Power Distribution Company' (PDC). It is situated on the 12A 'Tundzha' street and will be opened today. We make a promotion, this a gesture to the pensioners and people with low incomes, the chiefs of the Sofia PDC commented. At the same time the Social Ministry announced it will soon take drastic measures against the citizens, who receive aids but don't pay their electricity. It prepares a variant the money to be sent directly to NEC and from there the funds will be transferred to the PDC in the country, MP from Plovdiv Dimitar Peychev said yesterday.

Standartnews

of the computers with an old version to prevent its work from stopping. This happened after the 'AremisSoft' blocked the program for settling the accounts with the GPs, the pharmacies and the hospitals. The old version is also ours but if used, it could delete the whole massif of data, chief of 'AremisSoft' for Bulgaria Vassil Kolev said. We won't pay the demanded 1.7 mill. levs, till the firm processes the system and inputs in it the possibility for addition of data. We want to receive the whole methods, standards and documents on the project, Aneli Skrimova from the press-center of the Health Fund said.

Standartnews

Chief Secretary of Interior Gen. Boiko Borissov said yesterday that Gen. Vassil Vassilev - director of the National 'Police' Service, would not be removed. The hew heads of services with the Interior ministry will become known after President Parvanov's return from Brussels. He will meet Interior minister Georgi Petkanov then. Apart from the director of the National 'Security' Service I will propose one more chief of a service to be changed, Petkanov said yesterday.

Standartnews

Svetoslav Abrossimov

in Sofia allotted the Japanese government. Foreign Minister Solomon Passy and Yasuoshi Itsihashi - ambassador of Japan, yesterday signed a note for the guarantee agreement. The money is provided for building up the road-bed between the 7th and the 9th metrostations - from 'St. Nedelya' square, under 'Tsar Osvoboditel' Blvd., to the tunnel beneath 'Dragan Tsankov Blvd. Japanese Bank for International Cooperation launches the lawn for 30 years, with 10 years grace period. The annual interest is worth 2.2 percent.

Standartnews

Nevena Mircheva

"It is absolutely realistic that the patent taxes be increases by mere 20 percent as compared with last year," said chairman of the Services Chamber Rangel Tcholakov after the first sitting in the parliament of the newly established working party on the patent taxes. To Tcholakov, the new taxes could be enforced from April 1 on. For the smaller settlements the taxes will not be increased or the increase will not exceed 20 percent. Till Thursday, the working group is to revise the amount of the patent taxes and will propose they to be decreased. Reserves will be sought for in the budget so that its parameters not to be changed. "An agreement was reached the deadline for declaring patent activities to be extended till March 31," Tcholakov said.

Standartnews

Wine-producers from 24 countries will participate in the 10th international exposition 'Vinaria 2002' to be inaugurated in Plovdiv tomorrow. 171 overseas and 143 Bulgarian firms have hired stands in the pavilions of the international fair. The wine 'Bag in Box' packing of 'LVK-Vinprom Targovishte' will be presented for the very first time in Bulgaria. The biggest attraction for the guests will be in pavilion N 10 where in return for 10 levs the visitor will taste drinks without any restrictions.

Standartnews

Irena Tsekova

No claims were submitted to the Varna court against the decision, with which the shipyard is adjudged insolvent, sources from the court said. The term on appeal expires on February 7. If until then, the creditors are not to file any claims, the tender for sale of the assets may be called. We expect at least 4 serious offers, Deputy-Minister of Economy Kaloyan Ninov said. Left wing MP Petar Dimitrov, however, declared that one of the candidates - 'Hawgan Marine Group', is not legitimate. Its name is not on the list, comprising registrations of all the world companies in the naval branch.

Standartnews

Isaac Gozes

A strange sort of masochism is marking the conduct of the King's parliamentary group. On the face of it, it is brimming over with wisdom and nobility. Both their manners and their scents are characteristic of a ruling type. The blue blood of the NMS deputies show, there is a new glimmering in their eyes and a new morality, unknown in these lands, is outlining their path. But despite all this rare perfection of virtues, there is a thing that embarrasses the souls of the renowned as well as common followers of the NMS PG. This is the fact that they are enthusiastic (though the origin of their enthusiasm is obscure) and always given to fall into a trance at the mere sight of their leader. It is not that such reactions had not been seen in the 1,300-year history of this country. We witnessed overbrimming enormous halls to applaud and get on their feet all for naught. An though the times reportedly changed, almost the same things are occurring again and again. Quite a short time passed, from the moment when Mr Saxe-Coburg-Gotha came up with the warning that a party should not be constituted in the way some people were deeming to. Applauses followed. On Friday last, the Premier sobered down some of his upstart flock - "Now, we have the support of less than 20 percent of the people," wrote he in a letter. Which again resulted in enthusiasm, applauses and getting on feet. It never transpired who was the addressee of this enthusiasm. If the addressee was the prime-minister himself, he did not come up with his address for this purpose, but to point out that all this could not go further like that. Logically, in such a moment, whoever one is - a deputy, or a minister - should feel ashamed, get lost in thoughts or scared, at the least. The NMS aristocracy, however, surprised psychologists, taking to joy, embraces and shots as souvenirs. As if just climbing the Mount Everest.

Standartnews

Stefan Stambolov was also Mr. 10%, but built the state and its economy.

What Bulgaria and we, Bulgarians, didn't learn during the last 12 years? Which are these things which we didn't outlive? And that constantly hinder our progress? On January 31, 'Standart' organized a discussion entitled 'The Unassimilated Political Lessons from 1989 till Now'. Sociologist Petar-Emil Mitev, political scientist Vassil Garnizov, Direcor of the National Historic Museum Bozhidar Dimitrov and lecturer at the University for National and World Economy Associate Professor Boyan Durankev, psychologist Dr. Nikolay Mihaylov and spokeswoman of the NMS Emel Etem talked in the office building of 'Standart' for nearly 4 hours. We publish some of the opinions of the participants in this discussion.

Prof. Bozhidar Dimitrov
Director of the NMH

The documents for the meeting in Malta on December 2, 1989, and before that in Reykjavik and New York, are missing. Then Ronald Reagan and Mihail Gorbachov signed contracts. In Malta they reached an agreement how the world will continue to live from that moment on. There were secret clauses for sure. One of them was who will rule the transition, who will be the political elite. Despite that the collapse of totalitarian rule in 1989 was an objective regularity, the transition was manipulated and controlled. Because the 'colouring' of the political spectrum lay ahead - parties, which should fill the political space from left to the center, and parties - to fill the political spectrum from right to the center. The formation of political elite, the business elite. How to leave all this to develop by itself? We missed the creation of a quality elite. And this happened because many other problems. These people are willing to enrich themselves during the years they are in power. They'll go to any lengths even to destroy the branch and the plants they are in charge with. Thus a corruption, unseen and unheard of before, was born. You would say that corruption has existed in Bulgaria for many years. And that even 100 years ago the newspapers wrote about it. It's true. But there are different kinds of corruption. There's corruption of growth as the one in 1878-1912. We could say that Stambolov and his ministers were also 'Mr. 10%'. This means that a new barrack, for instance, costs by 10% more. The minister gets his percent but the barrack is built, too. At this period the present Bulgarian railway network was constructed. Huge number of public buildings were constructed, army on world level was created. Now bribes are given for the ruining of things, not for their construction. Somebody gives you $2 mill. to make you arrest the director of the shipyard in Varna exactly before he has signed a contract, assuring the good future of the shipyard. To the experts this is corruption of destruction.

Standartnews

The billionaire sang "My Country, My Bulgaria" to the welcomers.

Yesterday, on his arrival at the Sofia Airport the godfather of the Russian pop music Joseph Kobzon broke into tears. This happened while he was telling the journalists some memories of our country and mostly of Tsola Dragoicheva. Earlier, Kobzon rushed into the VIP hall in a jovial mood. Hardly entering the doors, he greeted everyone in fluent Bulgarian with the words "Good Morning". Then he performed Emil Dimitrov's song "My Country, My Bulgaria" to the thunderous applauses of the welcomers. Before the journalists, Kobzon speculated on the relations between Bulgarian and Russia growing chiller during the recent decade, though to him, it concerned only politicians but not the two peoples. Kobzon in an easy and quite a cheerful mood told anecdotes about Vladimir Putin who was a friend of his. Kobzon arrived in Bulgaria to take part in the concert dedicated to Joseph Tsankov yesterday.

Georgi P. Dimitrov

INTERVIEW Standartnews: Georgi Popov

We release new cigarettes on the Russian market, said the director of the tobacco giant Georgi Popov.

- Mr Popov, the politicians and ministers have already given their assessment of the strategy of privatization of 'Bulgartabak'. What's the opinion of the manager?

- To us it's important to show that we know how the management of this firm can be optimized to take off tension from the seller. It comes from the idea to sell at any cost. I think that today all of us are aware that it isn't necessary to sell at any cost. The sale is necessary, henceforth the good price is to be sought.

- What should privatization be like?

- Privatization should be effective. The starting point is, when knowing the potential of 'Bulgartabak', to take into account the price of this potential, deducting from that price all costs the investor is to cover to derive the maximum from 'Bulgartabak'. That is, there will be a discount but it will be the only way to get a good price.

- What does discount mean?

- For instance, if we know that after a restructuring, in three years the price of 'Bulgartabak' will be X, today we can sell it at the price of X minus the fixed costs which include the capacity of the people who would work, the financial expenditure and the risk assumed by the buyer. These are the factors.

- What is your opinion of the golden share?

- This is the way in which the state can control the fulfillment of the undertaken commitments. I think that it is a completely common and reasonable practice. In terms of efficiency, the golden share has no significance and connection with today's activity. This is a purely post-privatization structure.

- Why does the European Commission demand that no golden shares be preserved on privatization?

- The state provides itself control everywhere. The simplest way is to call something a golden share, but the most difficult thing is to define its meaning. At any rate, a controlling element is indispensable.

- For a long time now there has been talk about the changes in the board of 'Bulgartabak', they are a hot topic. In the long run, will there be any changes before the privatization?

- I believe that at the moment the board isn't as effective as it could be. I'm sure that when there is a will a lot can be done to improve the work of the board. So that everything we'll do in this respect, will aim at improving the efficiency of the leading structure of the holding, which is the board of directors.

- What does it mean - personnel changes or a change in relations aimed at reaching consensus?

- Regrettably, I can't give you any specific solution at the moment but the result should be one - the change of the present inefficient way of activity of the board of directors.

- What does ineffective activity mean?

- It means the absence of a vision and mixing of the operative and the strategic solutions.

(SB)

Reuters

By Galina Sabeva

SOFIA, Feb 5 (Reuters) - Bulgaria's indebted Balkan Airlines is seeking $6.0 million from British Airways for the swap of 10 weekly runway slots at London's busy Heathrow airport for the same number of slots at London Gatwick, a Balkan source said on Tuesday.

``Balkan is seeking six million dollars from British Airways, which is the amount for which Balkan slots at Heathrow had been evaluated by (consultancy) KPMG,'' the source told Reuters.

``But this amount is unlikely to be paid. BA is likely to pay between $4.0 million and $5.0 million to compensate for the exchange'', said the source, adding that BA representatives were expected in Sofia later this week, possibly on Wednesday.

The cash compensation is aimed to cover the difference in operating value of slots at Heathrow, Britain's busiest airport and those at London's seocond biggest airport at Gatwick.

British Airways has declined to comment on whether it is negotiating with Balkan, saying only that it is always looking to gain extra slots at Heathrow.

But a deal could throw more light on the monetary value of Heathrow's runway slots at a time when it is still uncertain as to precisely what rights airlines have to selling the slots they use at Heathrow and other busy airports in Europe.

Last month BA rejected demands by U.S. regulators to give up 224 weekly slots at Heathrow, equivalent to 16 daily takeoff and landing times, to make more room for competition to its proposed alliance with American Airlines.

Bulgaria's flag carrier, for which the slot sales is a last-ditch attempt to earn cash to cover operating costs, has said it was ready to consider offers from other airlines.

Aviation experts say Balkan Airline's Heathrow slots are among its most valuable assets. The slots are scheduled for around midday, a convenient time for passengers from the continent to connect with transatlantic flights.

Balkan operates six flights a week between Sofia and London, daily except Tuesday, requiring 12 slots per week.

The airline has said it planned to keep two slots at Heathrow to keep one flight a week.

A slot is a defined time period during which an airline can take off or land.


NO WAY BACK?

Balkan's court-appointed administrators term the planned deal with BA as ``an exchange of slots with indefinite term''.

The source said in case of a deal, the slots at Heathrow will be lost for Balkan as if it wants to terminate the contract and get the slots back, default on the deal will be too high.

Balkan's administrators had said a possible exchange of slots was not expected to lead to a decrease in passengers inflow as the new slots at Gatwick will be at times to allow for good connections with Virgin Atlantic Airways, Balkan's partner for transatlantic flights and BA's national archrival.

Bulgaria in July 1999 sold 75 percent of Balkan Airlines to Israel's Zeevi Group but last February the airline was grounded for more than two months in a dispute over unpaid debts.

Since May Balkan has gradually resumed flights to over 10 destinations. The airline's international fleet now consists of three Tupolev TU-154s, of which one is owned and two leased.

The airline's administrators in December submitted a rescue plan, under which Balkan would obtain loans from local banks, lease two Boeing aircraft and focus on profitable destinations.

But the court rejected the rescue plan, asking the airline's administrators to revise the list of its creditors.

Balkan's debts are estimated at 165 million levs ($73.53 million), of which 90 million levs are owned to the state. A local accounting firm has put its assets at 190 million levs.

($ equals 2.244 Bulgarian levs)

News.bg

Policemen finished inspecting the scene of the explosion that went off in Slatina at 5 AM this morning. The Ministry of the Interior Chief Secretary Boyko Borisov also visited the place. According to the police, the purpose of the explosion was to intimidate lawyer Ilian Vasilev, who was defending Poly Pantev, now killed, the policeman Kalin Kyosev, Kiro "The Japanese", and Valter Papazki. Vasilev was interrogated in the first District Police Service in Sofia, and after that he said that the bomb could had been planted as a form of revenge by a former prisoner.

The bomb has damaged windows, doors and the elevator.

Reuters

WASHINGTON (Reuters) - Secretary of State Colin Powell predicted on Tuesday a large expansion of NATO at the Prague summit in November.

Nine European countries have asked NATO to choose them at the summit. Diplomats and analysts believe at least four countries, and possibly up to seven, will be invited to join in the second wave of NATO enlargement.

Powell told the Senate Foreign Relations Committee, "I'm not prepared to say today how many of the aspirants will be invited but I think it's going to be a pretty good sized addition to the membership."

"The standard will be -- do they contribute to the alliance? Have they met the standards of the Membership Action Plan?" he added.

The nine countries seeking membership are Albania, Bulgaria, Estonia, Latvia, Lithuania, Macedonia, Romania, Slovakia and Slovenia.

Estonia, Latvia, Lithuania, Slovakia and Slovenia are among the leading contenders for membership. Diplomats say the decision on the applications by Bulgaria and Romania could go either way, while membership for Macedonia and Albania is a distant prospect. U.S. officials, however, have said they do not rule out the possibility of accepting all nine.

In the first round of expansion in 1999, the Czech Republic, Hungary and Poland joined the originally Western alliance, bringing membership up to 19.

At talks with Latvian President Vaira Vike-Freiberga on Tuesday, Powell offered "full U.S. support for Latvia's ongoing efforts to integrate fully into Euro-Atlantic institutions, including Latvia's work toward achieving its NATO Membership Action Plan objectives," the State Department said.

Beta

Bujanovac, 5 February: The state coordination body in Bujanovac has said this evening that it has information that certain leaders of the disbanded Liberation Army of Presevo, Bujanovac and Medvedja (OVPBM) [UCPMB in Albanian] are planning attacks on the facilities of the security forces in southern Serbia.

A statement by the government press centre in Bujanovac says that "it has been learnt from sources close to the Albanian extremists in Kosovo that certain unintegrated former 'commanders' are planning terrorist and sabotage operations in southern Serbia".

"The targets of the attacks are facilities of the Interior Ministry, the Yugoslav Army and state institutions," the press centre says.

"These operations are coordinated with leaders of certain Albanian parties in Kosovo, who are trying to exert pressure on the international community and the (Serbian) Return [Povratak] Coalition, and to show that they are the masters of peace and war in the region," the coordination centre for southern Serbia believes.

The members of this body have informed the relevant bodies about these plans, but also the leaders of the Albanian parties in southern Serbia, who should undertake appropriate action to prevent "terrorism, extremism and violence", the press centre statement says.

Following a protest by the family and compatriots of Nebi Nuhija, who was kidnapped two years ago near Presevo, the coordination body demands that the Serbian Justice Ministry, the Interior Ministry and the Serbian public prosecutor solve this case without delay.