From: chemae@jane.uh.edu (Todorov, Stanislav S.)
Newsgroups: soc.culture.bulgaria
Subject: RE: MILK PRISE
Date: 17 Dec 1992 15:16 CST
Organization: University of Houston
Distribution: world
NNTP-Posting-Host: jane.uh.edu
News-Software: VAX/VMS VNEWS 1.41    

In article <92351.184303ANTHC@CUNYVM.BITNET>, <ANTHC@CUNYVM.BITNET> writes...

For a while now I have been reading the writings of <ANTHC@CUNYVM.BITNET>
with a feeling of resigned amusement -- like, you know this guy is, well..
interesting.  I even tried to joke about it on the net.  

After some more of these, however, I realized that this is also read by 
other people, some foreigners, who have never been to Bulgaria, don't know
what the situation is, and may take it for the real thing.  So I shall try
to post a few facts.

>THE EXCHANGE RATE OF BULGARIAN NATIONAL BANK IS ...,  KEEP REPEATING
> 
>THE COMMUNISTS ON THE NET.  WHAT EXCHANGE RATE IS THIS?  WHO DETERMINED THE
> 
>WEIGHT OF THE BULGARIAN CURRENCY TOWARD THE MAIN CURRENCIES?

The exchange rate in Bulgaria is determined by the market -- yes, the good old 
supply and demand [or almost].  It is interesting to note that the rates that 
Bulgarian banks offer is very close to that offered by the Viennese ones.

> 
>WHO YOU ARE FOOLING COMRADES?  THE ENTIRE WORLD KNOWS THAT THE BULGARIAN
> 
>COMMUNIST MONEY ARE FAKE MONEY.  THEY ARE NOT BACKED BY BULLIONS, STABLE
> 
>ECONOMY AND POLITICAL STABILITY.  THE SO CALLED "EXCHANGE RATE" IS INDEED THE
> 
>PRISE ON WHICH THE COMMUNISTS IN BULGARIA BUY CURRENCY, BUT THEY DO NOT SELL
> 
>THERE IS NO MONEY MARKET IN BULGARIA.
> 
>IF SOMEONE WANTS TO BUY WEST CURRENCY IN BULGARIA MEETS A BRICK WALL.

You can buy currency in the bank.  There was a limit of $ 500 per person per 
year that you could  buy from the bank [4-month-old info].  You can also buy
on the street  -- not entirely legally, I agree, but [as opposed to pre-novem-
ber-1990] at better exchange rates.

You can put your hard currency in any bank.  The banks no longer ask for proof
of origin of your currency.  So the following usually takes place.  You want 
to go abroad.  To take the money through customs legally, you need a bank 
document ["bordero"].  You collect whatever money you can from wherever you
can.  Take it to the bank, deposit it, withdraw it and get the bordero.  You 
money is now "clean". 

Note that the limitation on amount of hard currency applies only to indivi-
duals.  All companies ["firmi"] including privately owned ones have virtually
unlimited access.

Finally, I would like an example of a western European country [or ANY country] 
whose central bank does not regulate by some means [usually amount of currency 
on the market] the $ exchange rate.

> 
>YOU MIGHT HAVE BILLIONS OF BULGARIAN LEVAS, BUT ALL WILL BE IN VAIN IF YOU
> 
>WANT TO EXCANGE THEM AND TO TAKE THE MONEY OUT.  ONLY THE COMMUNISTS ARE
> 
>ALLOWED TO TAKE CURRENCY OUT.

See above on taking money out of the country.

> 
>THIS IS THE PRIMARY REASON THE WESTERN INVESTORS DO NOT WANT TO INVEST IN
> 
>BULGARIA.  THE WESTERN INVESTORS WANT TO BE AT LIBERTY TO QUIT THEIR INVOLVMENT
>AT ANY INSTANCE AND TO MOVE TO A BETTER MARKET IF SUCH ACCURS.

Investment is not something you do, so you can pull out.  Investment does
require guarantees of stability.  Apparently these have been insufficient.
Face it -- there are still better deals out there -- Hungary, Czech republic,
etc.  Bulgaria's time will come.

>TO GIVE THE BULGARIAN ECONOMY A PUSH THE GOVERNMENT HAVE TO DO WITHOUT DELAY
> 
>THE FOLLOWING:

Let us note in the above text:  'HAVE TO DO WITHOUT DELAY'.  The prophet speaks.

> 
> 1. TO EXCHANGE IMMEDIATELY THE PRINTED IN LENINGRAD (USSR) BILLS WITH NEW
> 
>    BILLS PRINTED IN COUNTRY WITH GOOD REPUTATION LIKE ENGLAND, FRANCE, GERMANY
>    OR THE USA.  THE EXPENSE WILL BE ONLY $80 MILLIONS, BUT IT WILL GIVE
> 
>    CONFIDENCE TO THE POTENTIAL WESTERN INVESTORS THAT THE VOLUME OF THE
> 
>    MONEY OUT IS NOT FAKE.  THIS EXPENCE WILL BE PAID OFF INDIRECTLY BY
> 
>    ECONOMICAL GROUTH CAUSED BY NEW FOREIGN INVESTMENTS.  I READ EVEN
> 
>    SOMEWHERE THAT THE IMF AND THE IB ARE WILLING TO WAIVE THE EXPENCES
> 
>    OFF THE BULGARIAN DEBT.  UNTILL THE SOVIET PRINTED BILLS ARE IN CIRCULATION
>    NO BODY WILL INVEST IN BULGARIA, BECAUSE THERE ARE DOUBT THAT THE VOLUME
> 
>    OF THE MONEY IN CIRCULATION IS 3 TIMES HIGHER THEN THE OFFICIAL NUMBERS.
> 
>    THE SOVIETS CAN AT ANY INSTANCE LAUNCH HUGE AMOUNTS OF BULGARIAN MONEY
> 
>    THAT THEY HAVE ON STACK OR CAN MANIFACTURE.

Yes, the amount of money in circulation has increased greatly.  So have 
prices. Probably at a much higher rate.  Let me see, salaries have I guess
increased about a factor of ten, compared to three years ago.  Prices --
20 to 25 times.  Pensions -- 1.5 times.  This would make any money hoarded
abroad [unfortunately, also people's savings] much less important.

> 
> 2.  THE BULGARIAN GOVERNMENT TO GARANTEE THE FOREIGN INVESTMENTS AND TO
> 
>     WAVE THE TAXES OF THE MAJOR FOREIGN INVESTORS FOR AT LEAST 10 YEARS
> 
>     INCOM FOR THE STATE WILL COME FROM THE INCOM TAX ON THE PAY CHECKS.
> 
>     IT WILL BE NOT MUCH, BUT STILL IT IS BETTER THEN NOTHING NOW. 

Nothing? -- I was last paying over 20% income tax [on a very average salary].

> SOON
> 
>     THE COMPETITION WILL RAISE THE WAGES IN BULGARIA AND RISE OF THE VALUE OF
> 
>     THE NATIONAL CURRENCY WILL BEGIN TO PICK UP ON THE MONEY MARKETS.
> 
>     THE BULGARIANS (NOT ONLY COMMUNISTS) WILL BE ABLE TO SAVE AND INVEST.

   It is difficult to save when the bank prime rate is in the vicinity of 70%.
   Investment does not necessarily involve luquid assets -- c.f. Czecho-
   slovakia's privatization scheme.
> 
>     THE BULGARIANS THAT WORK FOR FOREIGN COMPANIES WILL LEARN SKILLS THAT
> 
>     WILL GIVE CHANCE  TO THE MOST TALENTED TO OPEN THEIR BUSINESSES AND EVEN
> 
>     COMPIT WITH THE FOREIGNERS ON THE NATIONAL MARKET, AND IN THE FUTURE ON
> 
>     THE INTERNATIONAL MARKETS.  THIS WILL RECREATE THE NATIONAL ELIT SLOTERED
> 
>     BY THE COMMUNISTS ON SEPTEMBER 9TH, 1944.  THE MOST CAPABLE AND TALENTED
> 
>     WILL BE AT THE TOP, NOT THE MOST OBIDIENT.
> 
Who would you say is obedient to the communists - Filip Dimitrov? Yordan 
Sokolov? Tatarchev?  Aleksander Yordanov? [Just off the top of my head.. these
are the acting Prime Minister, the Minister of Internal Affairs, the Attorney
General and the Chairman of the National Assembly, resp.]

>THE ABOVE PROPOSOLS I READ 2 YEARS AGO IN ECONOMIC MAGAZINE.  THE BULGARIAN
> 
>GOVERNMENT DIDN'T FOLLOW THE ADVICE, INSTEAD THEY CHOSE TO SQUEEZE WHAT THEY
> 
>CAN AND TO LEAVE THE COUNTRY.  TO FACILITATE THEIR EXODUS THEY EVEN CREATED
> 
>JES AIR, A COMPANY WITH ONE TASK ONLY TO MOVE THE BULGARIAN COMMUNISTS TO
> 
>THE USA AND CANADA ON BULGARIAN EXPENCE.  THE COMMUNISTS DIDN'T PAY TICKETS.

   Please name at least one member of a bulgarian government from the past 
two years who has left the country.  Your argument will be most convincing
if he/she used Jes Air.  

> 
>BULGARIA FUNDED JES AIR.  WHO SIGNED THE CREDITS FOR JES AIR?  MAY BE IT IS
> 
>NOT IMPORTANT.  THE IMPORTANT ISSUE IS THAT THE REMAINING HAVE TO PAY FOR THEIR
> 
>TICKETS.  THERE IS NOTHING LEFT IN BULGARIA TO BE SQEEZED NOW BUT THE
> 
>COMMUNISTS DISCOVER SOMETHING FROM WHICH THEY MIGHT SUCK SOME BLOOD IN THE
> 
>FUTURE.  DURING THE SUMMER OF 1992 ALL COMMUNIST ABROAD CAME BACK TO BULGARIA.
> 
>OF COURSE JES AIR PAYS, WHICH MEANS BULGARAIN TAX PAYERS.  THEY MADE A GOOD
> 
>VACANTION AND RECEIVE BACK 50 DEKARA LAND THAT THEY HAVE NEVER HAD.

Jes Air is not the first company to offer low rates and go under.  Some of us
remember People Express, Virgin Atlantic, Pan Am, Continental ....  

I don't know ... I just read MY writings ahd they don't seem much better.
It's hard to be cool and rational....

zhivi i zdravi,
slavi

Newsgroups: soc.culture.bulgaria