From: daniel@danbo.bg (Daniel Kalchev)
Subject: Re: Milk price
Organization: Digital Systems
Date: Fri, 18 Dec 1992 14:14:29 GMT

As someone who resides in Bulgaria and has observed the economical
evolution through personal (business) experience, I would like to
comment a bit on these issues.

peter@itnux2.cineca.it (Peter Yovchev) writes:
: I 'm a very democratic person and always respect the right of the 
: proper opinion, but when I see posted here in this group lies about
: the current situation in Bulgaria I can't stay idle.

Never say you are democratic person. Actually, never say you are good,
because you ask for someone to prove you are not. And of course,
nobody of us is perfect.

: I read with smile the long paranoic monologues of <ANTHC@CUNYVM.BITNET>,
: about gypsies,jews,communists and blow-jobbing /svirki/, but the last
: article I could'nt stand:

I did the same, although my smile was not ironic. But probably you
will not understand me, one has to live it, to at least know the
feeling, not to speak about knowledge.

: -THE EXCHANGE RATE OF BULGARIAN NATIONAL BANK IS ...,
: 
: This is the free  internal money market exchange rate.

No, there is NO such thing as free exchange rate in Bulgaria. The
rate is defined and -controlled- by the National Bank. There is no way
for anyone to open their own bank, without the approval (read:
control) of the government. As a matter of fact, this is true in any
other country.

: There is a relatively huge interbank and free money market in Bulgaria
: now. As I remember the amount of money trade is about $100 000 000 per
: day. Uor currency is binded to US$ so all the exchange rates are calculated
: through the $.

This is true. But so what? What does it say about the validity of the
exchange rate?

: Completely wrong !!!  EVERYBODY CAN NOW sell and buy foreign currency
: free. Every bulgarian citizen has a right to bye for his own purpose
: foreign currency. Every foreign turist and company can sell their
: leva and buy hard currency.

I hate to dissapoint you, but it is you who is delided (or brainwashed? :)

Let me explain how this "freedom" works: If you are private person,
you can buy from the bank (usualy a state bank, although there are
exceptions recently) up to an fixed amount foreign currency per year.
Before it was $50/year, I hear it is higher now, but still, it is
limited. When you leave the country, you should present a valid
document (issued in a *BANK*), that you are authorized to "export" the
currency (note, nobody cares that you own it). I had this experience
few times, once when I was traveling to USA I had few more $$$ than
the papers showed, and was about to pay a serious fine... The last
time, I got some money from the company safe, of course with a
statement of the company that I am autorized to export those money. Of
course, it turned out that the statement is not valid, because "the
company is not bank!"... 

The foreign tourists can of course buy Bulgarian leva. When they are
about to leave, and wonder what to do with the useless now Bulgarian
money, they have the "right" to go to an exchange burreau, and
presenting their passport and the vaucher of the exchanged before
foreign currency into Leva, to exchange an amount less or equal of
that back. As a matter of fact, this procedure happens in other
countries. I did exchange money in Tunisia exactly the same way.

About companies... Have you run your own bussines that deals with
import/export in Bulgaria? I doubt so. When you need foreign money,
there is of course no problem to buy them, but only when you present
valid contract, that you have to pay to an external company, and you
get exchanged the amount of your contract, no more. Our company exists
since 1989, from during the "communist regime", and I should tell you
that the procedure is exactly the same. Even if you have tons of
foreign currency on your accounts, you cannot do a bank transfer
without a valid contract, which makes sometimes advance payment a
headache.

: IF SOMEONE WANTS TO BUY WEST CURRENCY IN BULGARIA MEETS A BRICK WALL.
: 
: Completely wrong !!! There is a thousends of change offices in Sofia now.
: Even the old money black market "Magura street" is still existing.

Yes, especially if you want to sell foreign currency.
By the way, I doubt anyone is talking about the black market. It
exists everywhere, and as everywhere, buys and sells everything.

: Completely wrong !!! If your hard currency is legal e.g. if you have a
: bank bill or other document you can take out as much money as you want.

Not completely so. You will have to either "buy" something from
abroad, or keep your "hard currency" in an account in Bulgarian bank.

:  Actually the new bill of 100 leva is printed in Germany.

As well as the new bills of 20, 50, 200 and 500 Leva.

I hope you didnt take this too personal.

Regards from Bulgaria,
Daniel