WORLD TRADE
ORGANIZATIONG/SCM/N/25/BGR
G/SCM/N/38/BGR
G/SCM/N/48/BGR
G/SCM/N/60/BGRG/SCM/N/71/BGR
28 May 2003
(03-2866)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full and Updating Notifications Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the Agreement
on Subsidies and Countervailing Measures
BULGARIA
The following notification, dated 23 May 2003, has been received from the Permanent
Mission of Bulgaria
_______________
With reference to Article 25.1 of the Agreement on Subsidies and Countervailing Measures
and Article XVI:1 of GATT 1994, please find attached the following notifications of the Government
of the Republic of Bulgaria to the Committee on Subsidies and Countervailing Measures:
- Updating notifications for the years 1997, 1999 and 2000;
- New and full notifications for the years 1998 and 2001
TABLE OF CONTENTS
Page
FINANCIAL YE AR 1997............................................................................................................ ....... 2
FINANCIAL YE AR 1998............................................................................................................ ..... 15
FINANCIAL YE AR 1999............................................................................................................ ..... 29
FINANCIAL YE AR 2000............................................................................................................ ..... 46
FINANCIAL YE AR 2001............................................................................................................ ..... 63G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 2
FINANCIAL YEAR 1997
In accordance with Article 25 of the Agreement on Subsidies and Countervailing Measures
and Article XVI:1 of GATT 1994, the Government of the Republic of Bulgaria hereby submits the
updating notification on subsidies for financial year 1997. All data concerning the amounts of
subsidies are given in Bulgarian Levs (BGL).1
TABLE OF CONTENTS
Page
I. TRANS PORT.................................................................................................................... ..... 3
1. Railway Transport....................................................................................................... 3
2. Urban and Inter-Urban Passengers Transport ............................................................. 4
II. ENERGY ...................................................................................................................... .... 5
1. Central Heating, Coal and Briquette ........................................................................... 5
2. Electr icity .................................................................................................................. .. 6
III. MINING AND M ETALLURG Y .......................................................................................... 7
1. Ore-mining .................................................................................................................. 7
2. Metallurgy................................................................................................................... 8
IV. COMMUNI CATIONS .......................................................................................................... 9
1. Post and Telecommunications..................................................................................... 9
V. ENVIRONM ENT................................................................................................................. 1 0
1. Soil and Water Pollution ........................................................................................... 10
VI. EMPLOYMENT AND SOCI AL PROTEC TION ............................................................ 11
1. Assistance to low populated areas............................................................................. 11
VII. AGRI CULTU RE................................................................................................................ .. 12
1. Agricultural products ................................................................................................ 12
2. Development of t obacco production ......................................................................... 13
                                                     
1 The exchange rates as of 30.12.1997: 1 USD = 1.776.5 BGL.; 1 ECU=1.955.79 BGL.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 3
I. TRANSPORT
1. Railway Transport
1. Title of the subsidy programme
Assistance to Bulgarian State Railways Company
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Support for the reorganization and rehabilitation of the railway transport system and
Bulgarian State Railways Company - assistance for partial covering of losses of its transport activity,
for maintenance of railway infrastructure and for compensations of passenger travels by rail transport.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1997 (SG No 52 of 01.07.1997);
Council of Ministers Decree No 300/ 25.07.1997 on the State Budget Implementation;
Council of Ministers Decision No 990/02.12.1997 for granting financials to the Bulgarian
State Railways Company for remediation;Law on the Loan Contracts with the International Financial Institution, ratified by the
National Assembly on 31.01.1996;
Authorities responsible for the subsidy: Ministry of Finance; Ministry of Transport.
5.  Form of the subsidy
Grant, loan guarantee.
6.  To whom and how the subsidy is provided
Grants were provided to the Bulgarian State Railways Company for its readjustment within
the middle-term investment Program for rehabilitation of activities related to the maintenance,repairing and exploitation of the railway infrastructure; renovation of 250 km. railway road to be in
compliance with the European standards; gradual abolishment of the preferential conditions for
passengers transportation.
State guarantees  up to 100 per cent were provided on the loans extended  by the International
Financial Institutions for the  restructuring and stabilization of the Bulgarian State Railways Company.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants amounted BGL 28,500.00 mln.; Loan guarantee on the instalments in 1997 amounted
BGL 248.75 mln.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 4
8.  Duration of a subsidy and/or any other time limits attached to it   
Grants – duration within 1997.
Long-term loan is extended by the International Financial Institution at terms specified for the
case (with a long-term grace period).
9. Statistical data permitting an assessment of the trade effects of the subsidy
It can be assumed that the subsidy program has minimal trade effects.
2. Urban and Inter-Urban Passenger Transport
1. Title of the subsidy programme
Assistance to Urban and Inter-Urban  Passenger Ttransport
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Support to Sofia-City passenger transport and in ter-urban transport in the country for partial
covering of losses  from passenger activities
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1997 (SG No 52 of 01.07.1997);
Council of Ministers Decree No 300/ 25.07.1997 on the State Budget Implementation;
Ordinance of the Ministry of Finance on the managing of subsidies for inter-towns passenger
transport and inter passenger transport in the rare populated mountain and border
municipalities (updated every year);
Authorities responsible for the subsidy: Ministry of Transport, Ministry of Finance, Ministry
of Regional Development and Public Works, Municipalities.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
To all passenger transport companies through th e Sofia-City Municipality and Municipalities
after meeting the criteria stipulated in the Ministry  of Finance’s Ordinance in order to obtain grants
for the services they provide.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 5
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGL 16,552.00 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
I. ENERGY
1. Central Heating, Coal and Briquette
1. Title of the subsidy
Assistance to Central Heating, Coal and Briquette Companies
2. Period covered by the notification    
1997
3. Policy objective and/or purpose of the subsidy
Assistance to energy enterprises producing coal, briquettes and central heating energy in
conformity with the structural reforms in the energy sector.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1997 (SG No 52 of 01.07.1997);
Council of Ministers Decree No 300/ 25.07.1997 on the State Budget Implementation;
Council of Ministers Decree No 59/12.07.1996 on the setting up of the Energy ResourcesState Fund for supporting the process of structural reform in the energy sector;
Authorities responsible for the subsidy: Committee of Energy, Energy Resources State Fund.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
The subsidy is granted to companies producing coal and briquettes and to central heating
companies for compensation of the regulation of retail prices by the Council of Ministers, for
technical liquidation and conservation of poor deposit coal units, for increasing of liquidity capital of
coal mining units in liquidation.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 6
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGL. 229,518.00 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1997
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
2. Electricity
1. Title of the subsidy
Reconstruction, modernization and developmen t of the National electricity network
2. Period covered by the notification   
1997
3. Policy objective and/or purpose of the subsidy
Improvement of the operation of main and supporting energy systems, adjustment of the
National Electricity Company, putting into operation of new power units.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the Loan Contract with the International Financial Institutions (IFI), ratified by the
National Assembly on 30.7.1993.
Authorities responsible for the subsidy: National Electric Company, Ministry of Finance.
5.  Form of the subsidy
Loan guarantee.
6.  To whom and how the subsidy is provided
State guarantee up to 100 per cent was provided on the loans extended by the International
Financial Institutions consigned to the National Electricity Company.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loan guarantee on the instalments in 1997 amounted BGL 338.60 mln.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 7
8.  Duration of a subsidy and/or any other time limits attached to it   
The loan guarantee’ terms are specified for each loan case.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
III. MINING AND METALLURGY
1. Ore-mining
1. Title of the subsidy
Assistance to Ore-mining Units
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Assistance for the reorganization of ore-mining sector, liquidation of capacities of poor
deposit ore output units and closing down and eliminating the harmful effect of production andprocessing of uranium output and waste.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1997 (SG No 52 of 01.07.1997);
Council of Ministers Decree No 300/ 25.07.1997 on the State Budget Implementation;
Council of Ministers Decrees No 140/23.07.1992 for the elimination of the harmful effect of
production and processing of ore output and waste;
Council of Ministers Decrees No 56/1994 for the elimination of the harmful effect of
production and processing of uranium output and waste;
Authority responsible for the subsidy:  Ministry of Finance .
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
To ore and uranium mining units in liquidation.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy:
Total amount budgeted BGL. 2,746.26mln.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 8
8.  Duration of a subsidy and/or any other time limits attached to it
1997
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
2. Metallurgy
1. Title of the subsidy
Assistance to the metallurgical companies
2. Period covered by the notification   
1997
3. Policy objective and/or purpose of the subsidy
Assistance to companies of the metallurgy sector for remediation activities.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the Loan Contract with the IFI, ratified by the National Assembly on 05.03.1996 (SG
19/96).
Authority responsible for the subsidy: Ministry of Industry.
5.  Form of the subsidy
Loan guarantee.
6.  To whom and how the subsidy is provided
State guarantees up to 100 per cent were provided on the loans extended by the International
Financial Institution consigned to the companies of metallurgy sector for remediation.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loan guarantees on the instalments in 1997 amounted BGL 3 921.79 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
1997
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available .G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 9
IV. COMMUNICATIONS
1. Post and Telecommunications
1. Title of the subsidy
Assistance to the Bulgarian Post Compan y and Bulgarian Telecommunication Company
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Assistance for compensation of losses of the Bulgarian Post Company and Bulgarian
Telecommunication Company arising from the provision of services of general interest; for
improvement of the operation and management of  telecommunication networks of the Bulgarian
Telecommunication Company.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1997 (SG No 52 of 01.07.1997);
Council of Ministers Decree No 300/ 25.07.1997 on the State Budget Implementation;
Law on the Loan Contract with the IFI, ratified by the National Assembly in1992 and 1993;
Authority responsible for the subsidy: Committee of Posts and Telecommunications.
5. Form of the subsidy
Grant, loan guarantee.
6. To whom and how the subsidy is provided
Grants to Bulgarian Post Company and Bulg arian Telecommunication Company to provide
services of general interest;
State guarantees up to 100 per cent were provided on the loans extended by the International
Financial Institutions (IFI) consigned to the Bulgarian Telecommunication Company.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants budgeted BGL 2,850.48 mln.; Loan guar antees on the instalments in 1997 amounted
BGL 254,100.00 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1997G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 10
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
V. ENVIRONMENT
1. Soil and Water Pollution
1. Title of the subsidy
Assistance for reduction of soil and water pollution
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Reduction of the polluting effect of the wastes on the soil and water through establishment of
equipment for reprocessing and recycling, through building of water purification stations in order to
restore the normal quality of the environment.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Environmental  Protection Act (SG No 86/18.10.1991) amended SG No 100/1992; 31/1995;
63/1995; 13,85,86/1997;
Protocols of the 1997 sessions of the Management Council of the National Fund for
Environmental Protection for reduction of the harmful impact of waste.
Authorities  responsible for the subsidy: Ministry of Environment and Water, National Fund
for Environmental Protection.
5. Form of the subsidy
Soft loan.
6. To whom and how the subsidy is provided
Through the National Fund for Environmental Protection to all firms and companies on a
tender base, introducing equipment for reduction of soil and water pollution.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Soft loans budgeted BGL  673.65 mln.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 11
8. Duration of a subsidy and/or any other time limits attached to it
The terms are specified for each loan case.
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
VI. EMPLOYMENT AND SOCIAL PROTECTION
1. Assistance to low populated areas
1. Title of the subsidy
Assistance to low populated areas for foodstuff supply
2. Period covered by the notification   
1997
3. Policy objective and/or purpose of the subsidy
Assistance for covering the transport costs arising from the provision of services of general
interest for direct deliveries of bread and basic food to mountain, border areas and small villages withpopulation below 500 residents.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1997 (SG No 52 of 01.07.1997);
Council of Ministers Decree No 300/ 25.07.1997 on the State Budget Implementation;
Authorities responsible for the subsidy:  Ministry of Finance, Central Cooperative Union.
5.  Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
Through the Central Cooperative Union to all transport companies for the delivery of bread
and basic food to mountain, border areas and small villages.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGL 1,200.0 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
1997G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 12
9. Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
VII. AGRICULTURE
1. Agricultural products
1. Title of the subsidy
Assistance to the agricultural producers through the Agriculture State Fund
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Create economic conditions for implementation of the state policy for rehabilitation and
building up of a market-orientated viable agricultural sector.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1997 (SG No 52 of 01.07.1997);
Council of Ministers Decree No 300/ 25.07.1997 on the State Budget Implementation;
Law on Support of Agricultural  Producers (SG No 57/23.06.1995);
Authorities responsible for the subsidy: Ministry of Agriculture, Forestry and Agrarian
Reforms; Agriculture State Fund.
5.  Form of the subsidy
Grant, loan.
6.  To whom and how the subsidy is provided
The subsidies are provided through the Agriculture State Fund at the Ministry of Agriculture,
Forestry and Agrarian Reforms to all entities registered in the Agricultural Producers Register,
producing agricultural products for market sale.
The subsidies are granted for the wheat crop 1997 and 1998, sunflower, sugar beet and corn
production; for stimulation of investments under different programs, for cattle breeding, for partial
subsidizing of interest rates on the credits extended by the trade banks to the agricultural producers.
Short term loans are provided for spring and autumn wheat campaign and investments.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants - BGL 28,024.10 mln.; Loans - BGL 8,526.00 mln.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 13
8. Duration of a subsidy and/or any other time limits attached to it
1997
9. Statistical data permitting an assessment of the trade effects of a subsidy
Information on the trade effect of the subsidy is not available.
2. Development of tobacco production
1. Title of the subsidy:
Assistance to the tobacco producers through the Tobacco State Fund
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Assistance  to tobacco producers for the implementation of the state policy on development of
tobacco production.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1997 (SG No 52 of 01.07.1997);
Law on Tobacco and Tobacco Products of 30.11.93 (SG No 101/93);
Council of Ministers Decree No 48 of 22.3.94 amended by the CM Decree No 328 of
30.12.94 on the regulation of activity, accumulating and spending the resources of Tobacco
State Fund;Council of Ministers Decisions No 162 of 30.1.97 and No 926 of 15.10.97 on the conditions
for premiums' payment under the quality and breading of specified tobacco brands harvested
in 1996;
Authorities responsible for the subsidy: Ministry of Agriculture, Forestry and Agrarian
Reforms; Tobacco State Fund.
5. Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
The assistance is provided through the Tobacco State Fund at the Ministry of Agriculture,
Forestry and Agrarian Reforms to all tobacco producers registered under the Law on Tobacco and
Tobacco Products in the National Register of the tobacco producers. Each tobacco producer receives aCertificate for registration for its determined quota. They receive seeds free of charge.
The assistance is intended to support the production and delivery of tobacco seeds to the
producers; granting a bonus free of charge to the tobacco producers for processing and realization of
tobacco harvested in 1997 and buying unsold raw tobacco harvested in 1996.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 14
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants amounted BGL 6,091.21 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1997.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 15
FINANCIAL YEAR 1998
In accordance with Article 25 of the Agreement on Subsidies and Countervailing Measures
and Article XVI:1 of GATT 1994, the Government of the Republic of Bulgaria hereby submits the
New and Full Notification on subsidies for financial year 1998. All data concerning the amounts of
subsidies are given in Bulgarian Levs (BGL).1
TABLE OF CONTENTS
Page
I. TRANS PORT.................................................................................................................... ... 16
1. Railway Transport..................................................................................................... 16
2. Urban and Inter-Urban Passengers Transport ........................................................... 17
3. Maritime Transport ................................................................................................... 18
II. ENERGY ...................................................................................................................... .. 19
1. Central Heating, Coal and Briquette ......................................................................... 19
2. Electr icity .................................................................................................................. 20
III. MINING AND M ETALLURG Y ........................................................................................ 21
1. Ore-mining ................................................................................................................ 21
2. Metallurgy................................................................................................................. 22
IV. COMMUNI CATIONS ........................................................................................................ 23
1. Post and telecommunications.................................................................................... 23
V. ENVIRONM ENT................................................................................................................. 2 4
1. Soil and Water Pollution ........................................................................................... 24
VI. EMPLOYMENT AND SOCI AL PROTEC TION ............................................................ 25
1. Assistance to low populated areas............................................................................. 25
VII. AGRI CULTU RE................................................................................................................ .. 26
1. Agricultural products ................................................................................................ 26
2. Development of t obacco production ......................................................................... 27
                                                     
1 Exchange rate as of 31.12.1998: 1 ЕUR = BGL 1.955.83; 1 USD = BGL 1.760.39G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 16
I. TRANSPORT
1. Railway Transport
1. Title of the subsidy programme
Assistance to Bulgarian State Railways Company
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
Support for the reorganization and rehabilitation of the railway transport system and
Bulgarian State Railways Company - assistance for partial covering of losses of its transport activity,
for maintenance of railway infrastructure and for compensations of passenger travels by rail transport.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1998 (State Gazette No 123 of 22.12.1997);
Council of Ministers Decree No 35 of 11.02.1998 on the State Budget Implementation (App.
4 to Art. 34, item 1 and Art. 31, item 1);Law on the Loan Contracts with the International Financial Institution, ratified by the
National Assembly on 31.1.1996 (SG 12/96);
Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning the state
obligations on loans and guarantees’ agreements.
Authorities responsible for the subsidy: Ministry of Finance; Ministry of Transport.
5.  Form of the subsidy
Grant, loan guarantee.
6.  To whom and how the subsidy is provided
Grants were provided to the Bulgarian State Railways Company for its readjustment within
the Program for rehabilitation of activities related to  the maintenance, repairing and exploitation of the
railway infrastructure; renovation of 250 km. railway  road to be in compliance with the European
standards; closing of secondary and performing at a loss lines and sectors of the railway network
(about 304 km.); separation of the repairing-rehabilitation activities from the railway system; gradualabolishment of the preferential conditions for passengers transportation.
State guarantees  up to 100 per cent were provided on the loans extended  by the International
Financial Institutions for the  restructuring and stabilization of the Bulgarian State Railways Company.
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes an obligation on a loan guarantee after receiving the Parliament's approval for
conclusion of a loan guarantee agreement, ratified by the law.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 17
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants - BGL 68,338,00 mln.; Loan guarantees on the instalments in 1998 amounted
BGL 57,059.36 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
Grants – duration within 1998.
Long-term loan is extended by the International Financial Institution at terms specified for the
case (with a long-term grace period).
9. Statistical data permitting an assessment of the trade effects of the subsidy
It can be assumed that the subsidy program has minimal trade effects.
2. Urban and Inter-Urban Passenger Transport
1. Title of the subsidy programme
Assistance to Urban and Inter-Urban Passenger Transport
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
Support to Sofia-City passenger transport and in ter-urban transport in the country for partial
covering of losses  from  the transportation of passengers.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1998 (SG No 123 of 22.12.1997);
Council of Ministers Decree No 35 of 11.02.1998 on the State Budget Implementation;
Ordinance of the Ministry of Finance on the managing of subsidies for inter-towns passenger
transport and inter passenger transport in the rare populated mountain and border
municipalities (updated every year);
Authorities responsible for the subsidy: Ministry of Transport, Ministry of Finance, Ministryof Regional Development and Public Works, Municipalities.
5. Form of the subsidy
Grant.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 18
6. To whom and how the subsidy is provided
To all passenger transport companies through th e Sofia-City Municipality and Municipalities
after meeting the criteria stipulated in the Ministry  of Finance’s Ordinance in order to obtain grants
for the services they provide.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGL 26,025.27 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
3. Maritime transport
1.  Title of the subsidy programme
Assistance to the maritime transport
2.  Period covered by the notification
1998
3.  Policy objective and/or purpose of the subsidy
Construction strengthening of the Breakwater Sea port Varna–East.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1998 (SG No 123 of 22.12.1997);
Council of Ministers Decree No 35 of 11.02.1998 on the State Budget Implementation;
Council of Ministers Decision No 488/17.09.1998;
Authority responsible for the subsidy: Ministry of Transport.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
Sea port Varna Company.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 19
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGL 900.00 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
II. ENERGY
1. Central Heating, Coal and Briquette
1. Title of the subsidy
Assistance to Central heating, Coal and Briquette Companies
2. Period covered by the notification    
1998
3. Policy objective and/or purpose of the subsidy
Assistance to energy enterprises producing coal, briquettes and central heating energy in
conformity with the National Strategy for Long-term  Development of the Energy Sector. The strategy
provides for the restructuring and privatization of the energy sector and energy efficiency until 2010,
and the gradual cutting- off of the subsidies for this sector.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1998 (SG No 123 of 22.12.1997);
Council of Ministers Decree No 35 of 11.02.1998 on the State Budget Implementation;
Ordinance for management of the granted subs idies from the 1998 State budget to the energy
sector (updated every year);
Authorities responsible for the subsidy: Committee of Energy, Energy Resources State  Fund,
Ministry of Finance.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
The subsidy is granted to companies producing coal and briquettes and to central heating
companies for compensation of the regulation of retail prices by the Council of Ministers, forG/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 20
technical liquidation and conservation of poor deposit coal units, for increasing of liquidity capital of
coal mining units in liquidation.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGL 380,169.32 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
2. Electricity
1. Title of the subsidy
Reconstruction, modernization and development of the National electricity network.
2. Period covered by the notification   
1998
3. Policy objective and/or purpose of the subsidy
Improvement of the operation of main and supporting energy systems, adjustment of the
National Electricity Company, putting into operation of new power units.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the Loan Contracts with the IFI, ratified by the National Assembly on 10.06.1992,
30.7.1993;Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning  the state
obligation on the loans and guarantees’ agreements;
Authorities responsible for the subsidy: National Electric Company, Ministry of Finance.
5.  Form of the subsidy
Loan guarantee.
6. To whom and how the subsidy is provided
State guarantees up to 100 per cent were provided  on the loans extended by the International
Financial Institutions consigned to the National Electricity Company.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 21
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes obligation on a loan guarantee after receiving the Parliament's approval for conclusion
of a loan guarantee agreement, ratified by the law.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loan guarantees on the instalments in 1998 amounted BGL 171,390.91 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
The loan guarantees’ terms are specified for each loan case.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
III. MINING AND METALLURGY
1. Ore-mining
1.  Title of the subsidy
Assistance to Ore-mining Units
2.  Period covered by the notification
1998
3.  Policy objective and/or purpose of the subsidy
Assistance for the reorganization of ore-mining sector, liquidation of capacities of poor
deposit ore output units and closing down and eliminating the harmful effect of production and
processing of uranium output and waste.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1998 (SG No 123 of 22.12.1997);
Council of Ministers Decree No 35 of 11.02.1998 on the State Budget Implementation;
Council of Ministers Decrees No 140/1992 and No 74/1998 for the elimination of the harmfuleffect of production and processing of ore and uranium output and waste;
Authority responsible for the subsidy:  Ministry of Finance .
5.  Form of the subsidy
Grant.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 22
6.  To whom and how the subsidy is provided
To all ore mining units in liquidation.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy:
Total amount budgeted BGL 6,498.33 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1998
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
2. Metallurgy
1.  Title of the subsidy
Assistance to the metallurgical companies
2.  Period covered by the notification   
1998
3.  Policy objective and/or purpose of the subsidy
Assistance to companies of the metallurgy sector for remediation activities.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the Loan Contract with the IFI, ratified by the National Assembly on 05.03.1996 (SG
19/96);Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning  the state
obligation on the loans and guarantees’ agreements;
Authority responsible for the subsidy: Ministry of Industry.
5.  Form of the subsidy
Loan guarantee.
6.  To whom and how the subsidy is provided
State guarantees up to 100 per cent were provided on the loans extended by the International
Financial Institution consigned to the companies of metallurgy sector for remediation.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 23
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes obligation on a loan guarantee after receiving the Parliament's approval for conclusion
of a loan guarantee agreement, ratified by the law.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loan guarantees on the instalments in 1998 amounted to BGL 458,781.18 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
1998
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available .
IV. COMMUNICATIONS
1. Post and Telecommunications
1.  Title of the subsidy
Assistance to the Bulgarian Post Compan y and Bulgarian Telecommunication Company
2.  Period covered by the notification
1998
3.  Policy objective and/or purpose of the subsidy
Assistance for compensation of losses of the Bulgarian Post Company and Bulgarian
Telecommunication Company arising from the provision of services of general interest; for
improvement of the operation and management of  telecommunication networks of the Bulgarian
Telecommunication Company.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1998 (SG No 123 of 22.12.1997);
Council of Ministers Decree No 35 of 11.02.1998 on the State Budget Implementation;Law on the Loan Contract with the IFI, ratified by the National Assembly in1992 and 1993;
Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning  the state
obligation on the loans and guarantees’ agreements;
Authority responsible for the subsidy: Committee of Posts and Telecommunications.
5.  Form of the subsidy
Grant, loan guarantee.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 24
6.  To whom and how the subsidy is provided
Grants were provided to Bulgarian Post Company and Bulgarian Telecommunication
Company to provide services of general interest;
State guarantees up to 100 per cent were provided  on the loans extended by the International
Financial Institution consigned to the Bulgarian Telecommunication Company.
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes obligation on a loan guarantee after receiving the Parliament's approval for conclusionof a loan guarantee agreement, ratified by the law.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total grants budgeted BGL 4,739.80 mln.; Loan guarantees on the instalments in 1998
amounted BGL 9,513.21 mln.
8. Duration of a subsidy and/or any other time limits attached to it
1998
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
V. ENVIRONMENT
1. Soil and Water Pollution
1.  Title of the subsidy
Assistance for reduction of soil and water pollution
2.  Period covered by the notification
1998
3.  Policy objective and/or purpose of the subsidy
Reduction of the polluting effect of the wastes on the soil and water through establishment of
equipment for reprocessing and recycling, through building of water purification stations in order to
restore the normal quality of the environment.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Environmental  Protection Act (SG No 86/18.10.1991) amended SG No100/1992; 31,63/1995;
13,85,86/1997; 62/1998;
Protocols of the 1998 sessions of the Management Council of the National Fund for
Environmental Protection for reduction of the harmful impact of waste;G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 25
Authorities  responsible for the subsidy: Ministry of Environment and Water, National Fund
for Environmental Protection.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
Through the National Fund for Environmental Protection to all firms and companies installing
equipment for reduction of soil and water pollution.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants budgeted BGL 25,999.60 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
VI. EMPLOYMENT AND SOCIAL PROTECTION
1. Assistance to low populated areas
1. Title of the subsidy
Assistance to low populated areas for foodstuff supply
2. Period covered by the notification   
1998
3. Policy objective and/or purpose of the subsidy
Assistance for covering the transport costs arising from the provision of services of general
interest for direct deliveries of bread and basic food to mountain, border areas and small villages withpopulation below 500 residents.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1998 (SG No 123 of 22.12.1997);
Council of Ministers Decree No 35 of 11.02.1998 on the State Budget Implementation;
Authorities responsible for the subsidy:  Ministry of Finance, Central Cooperative Union.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 26
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
Through the Central Cooperative Union to all transport companies for the delivery of bread
and basic food to mountain, border areas and small villages.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGL 1,615.20 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
1998
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
VII. AGRICULTURE
1. Agricultural products
1.  Title of the subsidy
Assistance to the agricultural producers through the Agriculture State Fund
2.  Period covered by the notification
1998
3.  Policy objective and/or purpose of the subsidy
Create economic conditions for implementation of the state policy for rehabilitation and
building up of a market-orientated viable agricultural sector.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1998 (SG No 123 of 22.12.1997);
Council of Ministers Decree No 35 of 11.02.1998 on the State Budget Implementation;
Law on Support of Agricultural  Producers (SG 58 of 22.05.1998);
Council of Ministers Decree No 48 of 11.03.1994 on the activity, accumulating and spendingof the finances of the Agriculture State Fund;
Authorities responsible for the subsidy: Ministry of Agriculture, Forestry and Agrarian
Reforms; Agriculture State Fund.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 27
5. Form of the subsidy
Grant, loan.
6. To whom and how the subsidy is provided
The subsidies are provided through the Agriculture State Fund at the Ministry of Agriculture ,
Forestry and Agrarian Reforms to all entities registered in the Agricultural Producers Register,
producing agricultural products for market sale.
The subsidies are granted for the wheat crop 1998 and 1999, sunflower, sugar beet and corn
production; for stimulation of investments under 8 programs, for cattle breeding, for partial
subsidizing of interest rates on the credits extended by the trade banks to the agricultural producers.
Short term loans are provided for spring and autumn wheat campaign and investments.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants - BGL 7,831.90mln.; Loans - BGL 25,021.80 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1998
9.  Statistical data permitting an assessment of the trade effects of a subsidy
Information on the trade effect of the subsidy is not available.
2. Development of tobacco production
1. Title of the subsidy:
Assistance to the tobacco producers through the Tobacco State Fund
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
Assistance  to tobacco producers for the implementation of the state policy on development of
tobacco production.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1998 (SG No 123 of 22.12.1997);
Law on Tobacco and Tobacco Products of 30.11.93 (SG No 101/93);G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 28
Council of Ministers Decree No 48 of 22.3.94 amended by the CM Decree No 328 of
30.12.94 on the regulation of activity, accumulating and spending of the resources of Tobacco
State Fund;Authorities responsible for the subsidy: Ministry of Agriculture, Forestry and Agrarian
Reforms; Tobacco State Fund.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
The assistance is provided through the Tobacco State Fund at the Ministry of Agriculture,
Forestry and Agrarian Reforms to all tobacco producers registered under the Law on Tobacco and
Tobacco Products in the National Register of the tobacco producers. Each tobacco producer receives aCertificate for registration for its determined quota. They receive seeds free of charge.
The assistance is intended to support the production and delivery of tobacco seeds to the
producers; granting a bonus free of charge to the tobacco producers for processing and realization of
tobacco harvested in 1998 and buying unsold raw tobacco harvested in 1997.
7.  Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGL 17,230.54 mln.
8.  Duration of a subsidy and/or any other time limits attached  to it
1998
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 29
FINANCIAL YEAR 1999
The Republic of Bulgaria hereby submits the updating Notification on Subsidies for financial
year 1999 pursuant to Article 25 of the Agreement on Subsidies and Countervailing Measures and
Article XVI:1 of GATT 1994. All data concerning the amounts of subsidies are given in New
Bulgarian Levs (BGN).1
TABLE OF CONTENTS
Page
I. TRANS PORT.................................................................................................................... ... 30
1. Railway Transport..................................................................................................... 30
2. Urban and Inter-Urban Passengers Transport ........................................................... 31
3. Inland Navigati on Water Ways ................................................................................ 32
II. ENERGY ...................................................................................................................... .. 33
1. Central Heating, Coal and Briquette ......................................................................... 33
2. Electr icity .................................................................................................................. 34
III. MINING .................................................................................................................... .... 36
1. Ore-mining ................................................................................................................ 36
IV. COMMUNI CATIONS ........................................................................................................ 37
1. Post and Telecommunications ............................................................................................... 37
2. Telecommunication Deve lopment Project............................................................................. 38
V. ENVIRONM ENT................................................................................................................. 3 9
1. Soil and Water Pollution ........................................................................................... 39
VI. SOCIAL PROTECTION .................................................................................................... 40
1. Assistance to low populated areas............................................................................. 40
VII. RESEARCH AND DE VELOPMENT ............................................................................... 41
VIII. SMALL AND MEDIUM-S IZED ENTER PRISES ........................................................... 42
                                                     
1 Following the re-denomination of the Bulgarian currency, in January 1999 the BGN/EURO exchange
rate was fixed at BGN 1.95583 per 1 EURO.
Exchange rate as to 31.12.1999: 1 USD. = 1.94687 BGN.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 30
ІX. AGRICUL TURE.................................................................................................................. 43
1. Agricultural products ................................................................................................ 43
2. Development of t obacco production ......................................................................... 44
I.  TRANSPORT
1. Railway Transport
1. Title of the subsidy programme
Assistance to Bulgarian State Railways Company
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Support for the reorganization and rehabilitation of the railway transport system and
Bulgarian State Railways Company - assistance for partial covering of losses of its transport activity,
for maintenance of railway infrastructure and for compensations of passenger travels by rail transport.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (SG No 155/29.12.28);
Council of Ministers Decree No 23/10.02 .1999 on the State Budget Implementation;
Laws on the Loan Contracts with the International Financial Institutions, ratified by the
National Assembly on 31.01.1996 (SG No 12/96),  28.10.1998 (SG No 129/98),  03.02.1999
(SG No 12/99);
Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning the state
obligations on loans and guarantees’ agreements.
Authorities responsible for the subsidy: Ministry of Finance, Ministry of Transport.
5.  Form of the subsidy
Grant, loan guarantee.
6.  To whom and how the subsidy is provided
Grants were provided to the Bulgarian State Railways Company for its readjustment within
the Program for rehabilitation of activities related to the maintenance, repairing and exploitation of the
railway infrastructure; renovation of 250 km. railway  road to be in compliance with the European
standards; closing of secondary and performing at a loss lines and sectors of the railway networkG/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 31
(about 304 km.); separation of the repairing-rehabilitation activities from the railway system; gradual
abolishment of the preferential conditions for passengers transportation.
State guarantees  up to 100 per cent were provided on the loans extended  by the International
Financial Institutions for the  restructuring and stabilization of the Bulgarian State Railways Company.
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes an obligation on a loan guarantee after receiving the Parliament's approval for
conclusion of a loan guarantee agreement, ratified by the law.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants - BGN 116.00 mln.; Loan guarantees on the instalments in 1999 amounted
BGN 61.14 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
Grants – duration within 1999.
For the loan guarantees on the long-term loans (extended by the International Financial
Institutions) terms are specified for each loan case (some loans have a long-term grace period).
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It can be assumed that the subsidy program has minimal trade effects.
2. Urban and Inter-Urban Passenger Transport
1. Title of the subsidy programme
Assistance to Urban and Inter-Urban Passenger Transport
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Support to Sofia-City passenger transport and in ter-urban transport in the country for partial
covering of losses  from the transportation of passengers.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (SG No 155/29.12.28);
Council of Ministers Decree No 23/10.02 .1999 on the State Budget Implementation;G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 32
Ordinance of the Ministry of Finance on the managing of subsidies for inter-towns passenger
transport and inter passenger transport in the rare populated mountain and border
municipalities (updated every year);Authorities responsible for the subsidy: Ministry of Transport, Ministry of Finance, Ministry
of Regional Development and Public Works, Municipalities.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
To all passenger transport companies through th e Sofia-City Municipality and Municipalities
after meeting the criteria stipulated in the Ministry of Finance’s Ordinance in order to obtain grants for
the services they provide.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 23.60 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
Because of the purpose of the subsidy program it is considered that the trade effects are
minimal.
3. Inland Navigation Water Ways
1. Title of the subsidy programme
Assistance to Shipyard  Company, Russe
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Repairing and maintenance of riverboats and supplying of spare parts.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 33
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (SG No 155/29.12.1998);
Council of Ministers Decision No 57/05.02.1999 for granting a temporary financial assistance
before privatization of the Shipyard Company, Russe;
Authorities responsible for the subsidy: Ministry of Finance until 31 July 1999; after that date
- Ministry of Industry .
5.  Form of the subsidy
Loan.
6.  To whom and how the subsidy is provided
To Shipyard Company/ Russe.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 2.16 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1999
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It can be assumed that the trade effects are minimal.
II. ENERGY
1. Central Heating, Coal and Briquette
1. Title of the subsidy
Assistance to Central heating, Coal and Briquette Companies
2. Period covered by the notification   
1999
3. Policy objective and/or purpose of the subsidy
Assistance to energy enterprises producing coal, briquettes and central heating energy in
conformity with the National Strategy for Long-term  Development of the Energy Sector. The strategyG/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 34
provides for the restructuring and privatization of the energy sector and energy efficiency until 2010,
and the gradual cutting- off of the subsidies for this sector.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (SG No 155/29.12.28);
Council of Ministers Decree No 23/ 10.02.1999 on the State budget implementation;
Ordinance for management of the granted subsidies from the 1999 State budget to the energy
sector (updated every year);Law on Energy and Energy Efficiency, adopted by the National Assembly on 2 July 1999;
Council of Ministers Decision No 461/21.08. 1998 on the Plan for restructuring of the
activities in the energy sector;
Authorities responsible for the subsidy: Stat e Energy and Energy Resources Agency, Ministry
of Finance.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
The subsidy is granted to companies producing coal and briquettes and to central heating
companies for compensation of the regulation of retail prices by the Council of Ministers, for
technical liquidation and conservation of poor deposit coal units.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 167.58 mln.;
8.  Duration of a subsidy and/or any other time limits attached to it
1999
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
2. Electricity
1. Title of the subsidy
Reconstruction, modernization and developmen t of the National electricity networkG/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 35
2. Period covered by the notification   
1999
3. Policy objective and/or purpose of the subsidy
Improvement of the operation of main and supporting energy systems, adjustment of the
National Electricity Company, putting into operation of new power units.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the Loan Contract with the IFI, ratified by the National Assembly on 05.03.1996 (SG
19/96);
Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning  the state
obligation on the loans and guarantees’ agreements;
Authorities responsible for the subsidy: Ministry of Finance, State Energy and Energy
Resources Agency.
5. Form of the subsidy
Loan guarantee.
6. To whom and how the subsidy is provided
State guarantees up to 100 per cent were provided on the loans extended by the International
Financial Institutions and consigned to the National Electricity Company.
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes obligation on a loan guarantee after receiving the Parliament's approval for conclusion
of a loan guarantee agreement, ratified by the law.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loan guarantees on the instalments in 1999 amounted BGN 35.43 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
The loan guarantee terms are specified for each loan case.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 36
III. MINING
1. Ore-mining
1. Title of the subsidy
Assistance to Ore-mining Units
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance for the liquidation of capacities of poor deposit ore output units and closing down
and eliminating the harmful effect of production and processing of ore and uranium output and waste.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (SG No 155/29.12.1998);
Council of Ministers Decree No 23/ 10.2.1999 on the State budget implementation;
Council of Ministers Decrees No 140/1992 and No 74/1998 for the elimination of the harmful
effect of production and processing of ore and uranium output and waste.
Authorities responsible for the subsidy:  Ministry of Finance, State Energy and Energy
Resources Agency.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
To ore mining and uranium units in liquidation.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy:
Total amount budgeted BGN 14.10 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1999
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 37
IV. COMMUNICATIONS
1. Post and Telecommunications
1. Title of the subsidy
Assistance to the Bulgarian Post Compan y and Bulgarian Telecommunication Company
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance for compensation of losses of the Bulgarian Post Company and Bulgarian
Telecommunication Company arising from the provision of services of general interest.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (SG No 155/29.12.1998);
Council of Ministers Decree No 23/10.2. 1999 on the State budget implementation;
National Assembly Decision on the Statute of the Bulgarian Telecommunication Company
(SG 56 of 12.07.1994);Law on the Telecommunications (SG No 93 of 11.08.1998, amended SG No 23.03.1999);
Authorities responsible for the subsidy: Committee of Posts and Telecommunications,
National Telecommunication Network Fund.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
Bulgarian Post Company and Bulgarian Telecommunication Company to provide services of
general interest.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 6.49 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1999.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 38
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
2. Telecommunication Development Project
1. Title of the subsidy
Assistance to the Bulgarian Telecommunication Company
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance for improvement of operation of the telecommunication network and promotion of
telecommunication development.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the Loan Contract with the IFI, ratified by the National Assembly on 11.11.1993 (SG
No 98/93);Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) regulating the assumption
of the state obligation on the loans and guarantees’ agreements;
Authority responsible for the subsidy: Committee of Posts and Telecommunications.
5.  Form of the subsidy
Loan guarantee.
6.  To whom and how the subsidy is provided
Bulgarian Telecommunication Company.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loan guarantee on instalments in 1999 of BGN 5.93 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
The loan guarantees’ terms are specified for each loan case.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 39
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
V. ENVIRONMENT
1. Soil and Water Pollution
1. Title of the subsidy
Assistance for reduction of soil and water pollution
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Reduction of the polluting effect of the wastes on the soil and water through establishment of
equipment for reprocessing and recycling, through building of water purification stations in order to
restore the normal quality of the environment.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Environmental  Protection Act (SG No 86/18.10.1991) amended SG No 100/1992; 31 and
63/1995; 13,85,86/1997; 62/1998, 12/1999;
Protocols of the 1999 sessions of the Management Council of the National Fund for
Environmental Protection for reduction of the harmful impact of waste;
Authorities  responsible for the subsidy: Ministry of Environment and Water, National Fund
for Environmental Protection.
5.  Form of the subsidy
Loan.
6.  To whom and how the subsidy is provided
Through the National Fund for Environmental Protection to all firms and companies - on a
tender base, introducing equipment for reduction of soil and water pollution.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loans extended BGN 11.64 mln.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 40
8.  Duration of a subsidy and/or any other time limits attached to it
The terms are specified for each loan case.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
VI. SOCIAL PROTECTION
1. Assistance to low populated areas
1. Title of the subsidy
Assistance to low populated areas for foodstuff supply
2. Period covered by the notification   
1999
3. Policy objective and/or purpose of the subsidy
Assistance for covering the transport costs arising from the provision of services of general
interest for direct deliveries of bread and basic food to mountain, border areas and small villages withpopulation below 500 residents.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (SG No 155/29.12.1998);
Council of Ministers Decree No 23/10.2.1999 for the State budget implementation;Authorities responsible for the subsidy: Ministry of Finance, Central Cooperative Union.
5.  Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
Through the Central Cooperative Union to all transport companies for the delivery of bread
and basic food to mountain, border areas and small villages.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 2.6 mln.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 41
8.  Duration of a subsidy and/or any other time limits attached to it   
1999
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
VII. RESEARCH AND DEVELOPMENT
1. Title of the subsidy
Assistance to research and development
2. Period covered by the notification   
1999
3. Policy objective and/or purpose of the subsidy
Assistance for performing  the industrial research.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (State Gazette No 155/29.12.98);
Council of Ministers Decree No 23/ 10.02.1999 for the State budget implementation;
Authority responsible for the subsidy:  Ministry of Education and Science.
5.  Form of the subsidy
Loan.
6. To whom and how the subsidy is provided
Loans are provided to science research institutes, enterprises and firms under diferrent
programs (on condition of 50 per cent participation of own finances) on a tender terms. Reimbursment
starts after the first year with 2 year period of payment.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 0.56 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
1999G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 42
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
VIII. SMALL AND MEDIUM-SIZED ENTERPRISES
1. Title of the subsidy
Assistance to small and medium-sized enterprises
2. Period covered by the notification   
1999
3. Policy objective and/or purpose of the subsidy
Assistance to small and medium-sized enterprises for the improvement of their effectiveness
and competitiveness.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (SG No 155/29.12.98);
Council of Ministers Decree No 23/ 10.02.1999 for the State budget implementation;
Small and Medium-sized Enterprises Act, adopted by the National Assembly on 09.09.1999
(SG No 84/99);
Authorities responsible for the subsidy:  Ministry of Industry until September 1999; after that
date - Agency for Small and Medium-sized Enterprises at the Council of Ministers.
5. Form of the subsidy
Loan.
6. To whom and how the subsidy is provided
Through the Agency for Small and Medium-sized Enterprises to small and medium-sized
enterprises on a tender base under different programs.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
 Total amount budgeted BGN 0.665 mln.8.  Duration of a subsidy and/or any other time limits attached to it   
1999G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 43
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
IX. AGRICULTURE
1. Agricultural products
1. Title of the subsidy
Assistance to the agricultural producers through the Agriculture State Fund
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Create economic conditions for implementation of the state policy for rehabilitation and
building up of a market-orientated viable agricultural sector.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (SG No 155/29.12.1998);
Law on Support of Agricultural Producers (last amendment SG No 58 of 2.05.1998);
Authorities responsible for the subsidy: Ministry of Agriculture and Forestry, Agriculture
State Fund.
5.  Form of the subsidy
Grant, loan.
6.  To whom and how the subsidy is provided
The subsidies are provided through the Agriculture State Fund at the Ministry of Agriculture
and Forestry to all entities registered in the Agricultural Producers Register, producing agricultural
products for market sale.
The subsidies are granted for storage of wheat crop 1998/1999, for cattle breeding and hen
feeding; the short and long term loans are provided for corn and sunflower production crop 1998; for
wheat production and wheat seeds crop1999/2000; fo r stimulation of investments under 6 programs.
Short-term loans – for spring and autumn wheat campaign and investments.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 44
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants - BGN 13.35 mln.; Loans  - BGN 26.83 mln.
8. Duration of a subsidy and/or any other time limits attached to it
1999
9. Statistical data permitting an assessment of the trade effects of a subsidy
Information on the trade effect of the subsidy is not available.
2. Development of tobacco production
1. Title of the subsidy:
Assistance to the tobacco producers through the Tobacco State Fund
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance  to tobacco producers for the implementation of the state policy on the development
of tobacco production.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 1999 (SG No 155/29.12.1998);
Law on Tobacco and Tobacco Products of 30.11.93 (SG No 101/93);
Council of Ministers Decree No 48 of 22.3.94 amended by the CM Decree No 328 of
30.12.94 on the regulation of activity, accumulating and spending the resources of Tobacco
State Fund;Authorities responsible for the subsidy: Ministry of Agriculture and Forestry, Tobacco State
Fund at the Ministry of Agriculture and Forestry.
5.  Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
The assistance is provided through the Tobacco State Fund at the Ministry of Agriculture  and
Forestry to all tobacco producers registered under the Law on Tobacco and Tobacco Products in theG/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 45
National Register of the tobacco producers. Each tobacco producer receives a Certificate for
registration for its determined quota. The producers receive seeds free of charge and a bonus for
processing and realization of tobacco harvested in 1999 and buying unsold raw tobacco harvested in1998.
For regulation of the tobacco production, a premium from Tobacco State Fund is envisaged
for quality and breeding of specific brands with a market demand.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 20.68 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
1999.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 46
FINANCIAL YEAR 2000
In accordance with Article 25 of the Agreement on Subsidies and Countervailing Measures
and Article XVI:1 of GATT 1994, the Government of the Republic of Bulgaria hereby submits the
updating Notification on subsidies for financial year 2000. All data concerning the amounts of
subsidies are given in New Bulgarian Levs (BGN).1
TABLE OF CONTENTS
Page
I. TRANS PORT.................................................................................................................... ... 47
1. Railway Transport..................................................................................................... 47
2. Urban and Inter-Urban Passengers Transport ........................................................... 48
3. Maritime Transport ................................................................................................... 49
4. Inland Navigati on Water Ways ................................................................................ 50
II. ENERGY ...................................................................................................................... .. 51
1. Central Heating, Coal and Briquette ......................................................................... 51
2. Electr icity .................................................................................................................. 52
III. MINING AND ME TALLURG Y ........................................................................................ 54
1. Ore-mining ................................................................................................................ 54
2. Metallurgy................................................................................................................. 55
IV. COMMUNI CATIONS ........................................................................................................ 56
1. Post and Telecommunications................................................................................... 56
V. ENVIRONM ENT................................................................................................................. 5 7
1. Soil and Water Pollution ........................................................................................... 57
VI. EMPLOYMENT AND SOCI AL PROTEC TION ............................................................ 58
1. Encouragement of  employment................................................................................. 58
2. Assistance to low populated areas............................................................................. 59
VII. AGRI CULTU RE................................................................................................................ .. 60
1. Agricultural products ................................................................................................ 60
2. Development of t obacco production ......................................................................... 61
                                                     
1 Exchange rate as of 31.12.2000: 1 ЕUR = BGN 1.95583; 1USD= BGN 2.10191G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 47
I. TRANSPORT
1. Railway Transport
1. Title of the subsidy programme
Assistance to Bulgarian State Railways Company
2. Period covered by the notification
2000
3. Policy objective and/or purpose of the subsidy
Support for the reorganization and rehabilitation of the railway transport system and
Bulgarian State Railways Company - assistance for partial covering of losses of its transport activity,
for maintenance of railway infrastructure and for compensations of passenger travels by rail transport.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (State Gazette No 1 of 04.01.2000);
Council of Ministers Decree No 15 of 15.2.2000 on the State Budget Implementation;
Council of Ministers Decision No 701 of 27.10.2000 concerning compensation on passengertransportation by railway;
Council of Ministers Decision  298 of 29.5.2000  on the loan for repairing and maintenance of
wagons and delivery of spare parts;
Laws on the Loan Contracts with the International Financial Institutions, ratified by the
National Assembly on 31.01.1996 (SG No 12/96), 03.02.1999 (SG No 12/99);
Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning the state
obligations on loans and guarantees’ agreements;Authorities responsible for the subsidy: Ministry of Finance, Ministry of Transport and
Communications.
5. Form of the subsidy
Grant, loan, loan guarantee.
6. To whom and how the subsidy is provided
Grants were provided to the Bulgarian State Railways Company for its readjustment within
the Program for rehabilitation of activities related to  the maintenance, repairing and exploitation of the
railway infrastructure; renovation of 250 km. railway  road to be in compliance with the European
standards; closing of secondary and performing at a loss lines and sectors of the railway network
(about 304 km.); separation of the repairing-rehabilitation activities from the railway system; gradual
abolishment of the preferential conditions for passengers transportation.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 48
State guarantees  up to 100 per cent were provided on the loans extended  by the International
Financial Institutions for the  restructuring and stabilization of the Bulgarian State Railways Company.
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes an obligation on a loan guarantee after receiving the Parliament's approval for
conclusion of a loan guarantee agreement, ratified by the law.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants - BGN 60 mln.; Loan - BGN 10 mln.; Lo an guarantees on the instalments in 2000
amounted BGN 31.28 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
Grants, Loans – duration within 2000.For the loan guarantees on the long-term loans (extended by the International Financial
Institutions) terms are specified for each loan case (some loans have a long-term grace period).
9. Statistical data permitting an assessment of the trade effects of the subsidy
It can be assumed that the subsidy program has minimal trade effects.
2. Urban and Inter-Urban Passenger Transport
1. Title of the subsidy programme
Assistance to Urban and Inter-Urban Passenger Transport
2. Period covered by the notification
2000
3. Policy objective and/or purpose of the subsidy
Support to Sofia-City passenger transport and in ter-urban transport in the country for partial
covering of losses  from the transportation of passengers .
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1/04.01.2000);
Council of Ministers Decree No 15 of 15.2.2000 on the State Budget Implementation;
Ordinance of the Ministry of Finance on the managing of subsidies for inter-towns passenger
transport and inter passenger transport in the rare populated mountain and bordermunicipalities (updated every year).G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 49
Authorities responsible for the subsidy: Ministry of Transport and Communications, Ministry
of Finance, Ministry of Regional Development and Public Works, Municipalities.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
To all passenger transport companies through th e Sofia-City Municipality and Municipalities
after meeting the criteria stipulated in the Ministry of Finance’s Ordinance in order to obtain grants for
the services they provide.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 22.41 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
2000
9. Statistical data permitting an assessment of the trade effects of the subsidy
Because of the purpose of the subsidy program it is considered that the trade effects are
minimal.
3. Maritime transport
1. Title of the subsidy programme
Assistance to the maritime transport.
2. Period covered by the notification
2000
3. Policy objective and/or purpose of the subsidy
Construction strengthening of the sea port Varna–East.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1/04.01.2000);
Council of Ministers Decree No15 of 15.2.2000 on the State Budget Implementation;Authority responsible for the subsidy: Ministry of Transport and Communications.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 50
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
Sea port Varna Company.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 1.07 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
2000.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It can be assumed that the trade effects are minimal.
4. Inland Navigation Water Ways
1. Title of the subsidy programme
Assistance to Bulgarian Inland Navigation Company, Russe
2. Period covered by the notification
2000
3. Policy objective and/or purpose of the subsidy
Repairing and maintenance of riverboats and supplying of spare parts.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1/04.01.2000);
Council of Ministers Decision No 697 of 27.10.2000 for repairing and maintenance of boatsand supplying of spare parts.
Authorities responsible for the subsidy: Ministry of Transport and Communication, Ministry
of Finance.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 51
5.  Form of the subsidy
Loan.
6.  To whom and how the subsidy is provided
To Bulgarian Inland Navigation Company/Russe.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 1.00 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
2000
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It can be assumed that the trade effects are minimal.
II. ENERGY
1. Central Heating, Coal and Briquette
1. Title of the subsidy
Assistance to Central heating, Coal and Briquette Companies
2. Period covered by the notification    
2000
3. Policy objective and/or purpose of the subsidy
Assistance to energy enterprises producing coal, briquettes and central heating energy in
conformity with the National Strategy for Long-term  Development of the Energy Sector. The strategy
provides for the restructuring and privatization of the energy sector and energy efficiency until 2010,
and the gradual cutting- off of the subsidies for this sector.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1/04.01.2000);
Council of Ministers Decree No 15/ 15.2.2000 on the State budget implementation;
Council of Ministers Decree No 195/26.9.2000 for technical liquidation and overcoming ofharmful consequences after cutting or limitation of current activity in coal-mining sector;G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 52
Council of Ministers Decision s No 570/4.8.2000, 571/4.8.2000, 744/13.11.2000,
856/15.12.2000 for increasing of liquidity capital to coal mining units in liquidation;
Council of Ministers Decision No 356/19.6.2000 on the plan for accelerated privatization ofthe coal-mining sector in the period 2000-2001;
Council of Ministers Decision No 768 of 21.11.2000 for covering the expenses  for fuels for
the production of energy for heating season 2000;
Law on the Loan Contract with the International Financial Institutions (IFI), ratified by the
National Assembly in 1997;
Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning  the state
obligation on the loans and guarantees’ agreements;Authorities responsible for the subsidy: Stat e Energy and Energy Resources Agency, Ministry
of Finance, Ministry of Economy.
5.  Form of the subsidy
Grant, Loan guarantee.
6.  To whom and how the subsidy is provided
The subsidy is granted to companies producing coal and briquettes and to central heating
companies for compensation of the regulation of retail prices by the Council of Ministers, for
technical liquidation and conservation of poor deposit coal units.
Loan guarantee is provided for delivery of heat-meters to all central heating companies.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants – BGN 142.64 mln.; Loan guarantees on the instalment in 2000 – BGN 5.48 mln.
8. Duration of a subsidy and/or any other time limits attached to it
Duration for the grants – 2000; for the loan guar antee - terms are specified for each loan case.
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
2. Electricity
1. Title of the subsidy
Reconstruction, modernization and developmen t of the National electricity network
2. Period covered by the notification   
2000G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 53
3. Policy objective and/or purpose of the subsidy
Improvement of the operation of main and supporting energy systems, adjustment of the National
Electricity Company, putting into operation of new power units.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the Loan Contracts with the IFI, ratified by the National Assembly on 10.9.1992 and
30.7.1993;
Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning  the state
obligation on the loans and guarantees’ agreements;
Authorities responsible for the subsidy: Stat e Energy and Energy Resources Agency, Ministry
of Finance.
5.  Form of the subsidy
Loan guarantee.
6.  To whom and how the subsidy is provided
State guarantees up to 100 per cent were provided on the loans extended by the International
Financial Institutions and consigned to the National Electricity Company.
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes obligation on a loan guarantee after receiving the Parliament's approval for conclusion
of a loan guarantee agreement, ratified by the law.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loan guarantees on the instalments in 2000 amounted BGN 71.18 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
The loan guarantees’ terms are specified for each loan case.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 54
III. MINING AND METALLURGY
1. Ore-mining
1. Title of the subsidy
Assistance to Ore-mining Units
2. Period covered by the notification
2000
3. Policy objective and/or purpose of the subsidy
Assistance for the reorganization of ore-mining sector, liquidation of capacities of poor
deposit ore output units and closing down and eliminating the harmful effect of production and
processing of uranium output and waste.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1/04.01.2000);
Council of Ministers Decree No 15/ 15.2.2000 on the State budget implementation;
Council of Ministers Decrees No 140/1992 and No 74/1998 for the elimination of the harmful
effect of production and processing of ore and uranium output and waste;
Authorities responsible for the subsidy:  Ministry of Economy, State Energy and Energy
Resources Agency.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
To ore mining and uranium units in liquidation.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy:
Total amount budgeted BGN 31.72mln.
8.  Duration of a subsidy and/or any other time limits attached to it
2000
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 55
2. Metallurgy
1. Title of the subsidy
Assistance to the metallurgical companies
2. Period covered by the notification   
2000
3. Policy objective and/or purpose of the subsidy
Assistance to companies of the metallurgy sector for remediation activities.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1 of 04.01.2000);
Council of Ministers Decree No 15/ 15.2.2000 on the State budget implementation;
Law on the Loan Contract with the IFI, ratified by the National Assembly on 05.03.1996 (SG19/96);
Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning  the state
obligation on the loans and guarantees’ agreements;
Authority responsible for the subsidy: Ministry of Finance.
5.  Form of the subsidy
Grant; Loan guarantee.
6.  To whom and how the subsidy is provided
Grants and state guarantees (up to 100 per cent on the loans extended by the International
Financial Institution) consigned to the companies of metallurgy sector for remediation.
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes obligation on a loan guarantee after receiving the Parliament's approval for conclusion
of a loan guarantee agreement, ratified by the law.   
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants budgeted BGN 0.412 mln.; activate d loan guarantee amounted BGN 2.24 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
2000.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 56
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available .
IV. COMMUNICATIONS
1. Post and Telecommunications
1. Title of the subsidy
Assistance to the Bulgarian Post Compan y and Bulgarian Telecommunication Company
2. Period covered by the notification
2000
3. Policy objective and/or purpose of the subsidy
Assistance for compensation of losses of the Bulgarian Post Company and Bulgarian
Telecommunication Company arising from the provision of services of general interest.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1 of 04.01.2000);
Council of Ministers Decree No 15 of 15.2.2000 on the State budget implementation;
Authority responsible for the subsidy: Ministry of Transport and Communications.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
To Bulgarian Post Company and Bulgarian Telecommunication Company to provide services
of general interest.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 4.10 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
2000.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 57
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
V. ENVIRONMENT
1. Soil and Water Pollution
1. Title of the subsidy
Assistance for reduction of soil and water pollution
2. Period covered by the notification
2000
3. Policy objective and/or purpose of the subsidy
Reduction of the polluting effect of the wastes on the soil and water through establishment of
equipment for reprocessing and recycling, through building of water purification stations in order to
restore the normal quality of the environment.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Environmental  Protection Act (SG No 86/18.10.1991) amended SG No 100/1992; 31 and
63/1995; 13,85,86/1997; 62/1998, 12/1999;
Protocols of the 1999 and 2000 sessions of the Management Council of the National Fund for
Environmental Protection for reduction of the harmful impact of waste;
Authorities  responsible for the subsidy: Ministry of Environment and Water, National Fund
for Environmental Protection.
5. Form of the subsidy
Soft loan (averages grace period of 24 months and average repayments of 3 years).
6. To whom and how the subsidy is provided
Through the National Fund for Environmental Protection to all firms and companies - on a
tender base, introducing equipment for reduction of soil and water pollution.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Soft-loans extended BGN 9.78 mln.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 58
8.  Duration of a subsidy and/or any other time limits attached to it
The terms are specified for each loan case.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
VI. EMPLOYMENT AND SOCIAL PROTECTION
1. Encouragement of Employment
1. Title of the subsidy
Encouragement of employment
2. Period covered by the notification   
2000
3. Policy objective and/or purpose of the subsidy
Encouragement of the employers to hire different categories of unemployed persons (young
persons with higher, secondary or basic education, unemployed on a part time basis, long timeunemployed persons etc.).
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1 of 04.01.2000);
Council of Ministers Decree No 15 of 15.2.2000 on the State budget implementation;Law on Protection against Unemployment and Employment Promotion (SG 120 of
16.12.1997);
Council of Ministers Decree N 206/03.10.2000 fo r funding the implementation of programs
and measures for employment promotion and professional qualification;
Authorities responsible for the subsidy: Ministry of Labor and Social Policy, Ministry of
Finance.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
Subsidies are provided through the National Employment Agency and the Professional
Qualification and Unemployment Fund to the employ ers (natural persons and legal entities) who meetG/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 59
the requirements for employment of different categories of unemployed persons and programs for
employment:
Reimbursement made by the Professional Qualification and Unemployment Fund of the
expenses (up to the amount of the minimal salary) and social insurance contributions (payable by the
employers) for hiring young persons through labor contracts, unemployed on a part time basis,
individuals-unemployed for a long time and for the first five individuals hired by single traders.
Reimbursement of the one-year contributions made to the Pensions Fund and those to the
Professional Qualification and Unemployment Fund for the first five unemployed individuals hired
through the 2 years labour contract.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 6.78 mln.
8. Duration of a subsidy and/or any other time limits attached to it    
2000
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
2. Assistance to low populated areas
1. Title of the subsidy
Assistance to low populated areas for foodstuff supply
2. Period covered by the notification   
2000
3. Policy objective and/or purpose of the subsidy
Assistance for covering the transport costs arising from the provision of services of general
interest for direct deliveries of bread and basic food to mountain, border areas and small villages with
population below 500 residents.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1 of 04.01.2000),
Council of Ministers Decree No 15 of 15.2.2000 for the State budget implementation;Authorities responsible for the subsidy:  Ministry of Finance, Central Cooperative Union.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 60
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
Through the Central Cooperative Union to all transport companies for the delivery of bread
and basic food to mountain, border areas and small villages.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 3.2 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
2000
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
VII. AGRICULTURE
1. Agricultural products
1. Title of the subsidy
Assistance to the agricultural producers through the Agriculture State Fund
2. Period covered by the notification
2000
3. Policy objective and/or purpose of the subsidy
Create economic conditions for implementation of the state policy for rehabilitation and
building up of a market-orientated viable agricultural sector.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1 of 04.01.2000),
Law on Support of Agricultural Producers (last amendment SG No 58 of 2.05.1998);
Authorities responsible for the subsidy: Ministry of Agriculture and Forestry, AgricultureState Fund.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 61
5.  Form of the subsidy
Grant, loan.
6.  To whom and how the subsidy is provided
The subsidies are provided through the Agriculture State Fund at the Ministry of Agriculture
and Forestry to all entities registered in the Agricultural Producers Register, producing agricultural
products for market sale.
The subsidies are granted for the wheat crop 2000, sunflower and sugar beet, for stimulation
of investments under different programs, for cattle breeding, for partial subsidizing of interest rates on
the credits extended by the trade banks to the agricultural producers.
Short-term loans – for spring and autumn wheat campaign and investments.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants - BGN 10.57 mln.; Loans  - BGN 29.21 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
2000
9.  Statistical data permitting an assessment of the trade effects of a subsidy
Information on the trade effect of the subsidy is not available.
2. Development of tobacco production
1. Title of the subsidy:
Assistance to the tobacco producers through the Tobacco State Fund
2. Period covered by the notification
2000
3. Policy objective and/or purpose of the subsidy
Assistance  to tobacco producers for the implementation of the state policy on the development
of tobacco production.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 62
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2000 (SG No 1/4.1.2000);
Law on Tobacco and Tobacco Products of 30.11.93 (SG No 101/93), last amendment of
21.1.2000 (SG No 33/2000);
Council of Ministers Decree No 48 of 22.3.94 amended by the CM Decree No 328 of
30.12.94 on the regulation of activity, accumulating and spending the resources of Tobacco
State Fund.
Authorities responsible for the subsidy: Ministry of Agriculture and Forestry, Tobacco StateFund.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
The assistance is provided through the Tobacco State Fund at the Ministry of Agriculture  and
Forestry to all tobacco producers registered under the Law on Tobacco and Tobacco Products in the
National Register of the tobacco producers. Each tobacco producer receives a Certificate for
registration for its determined quota. They receive seeds free of charge. For regulation of the tobacco
production, a premium from Tobacco State Fund is envisaged for quality and breeding of specific
brands with a market demand.
The assistance is intended to support under different objectives the production and delivery of
tobacco seeds to the producers; granting a bonus free of charge to the tobacco producers for
processing and realization of tobacco harvested in 2000 and buying unsold raw tobacco harvested in
1999.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 25.75 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
2000.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 63
FINANCIAL YEAR 2001
In accordance with  Article 25 of the Agreement on Subsidies and Countervailing Measures
and Article XVI:1 of GATT 1994, the Government of the Republic of Bulgaria hereby submits the
New and Full Notification on subsidies for financial year 2001 . All data concerning the amounts of
subsidies are given in New Bulgarian Levs (BGN).1
TABLE OF CONTENTS
Page
I. TRANS PORT.................................................................................................................... ... 64
1. Railway Transport..................................................................................................... 64
2. Urban and Inter-Urban Passengers Transport ........................................................... 65
3. Maritime tr ansport..................................................................................................... 66
II. ENERGY ...................................................................................................................... .. 67
1. Central Heating and Coal .......................................................................................... 67
2. Electr icity .................................................................................................................. 68
III. MINING .................................................................................................................... .... 70
1. Ore-mining ................................................................................................................ 70
IV. COMMUNI CATIONS ........................................................................................................ 71
1. Post and Telecommunications................................................................................... 71
V. ENVIRONM ENT................................................................................................................. 7 2
1. Soil and Water Pollution ........................................................................................... 72
VI. EMPLOYMENT AND SOCI AL PROTEC TION ............................................................ 73
1. Encouragement of  employment................................................................................. 73
2. Assistance to low populated areas............................................................................. 74
VII. AGRI CULTU RE................................................................................................................ .. 75
1. Agricultural products ................................................................................................ 75
2. Development of t obacco production ......................................................................... 76
                                                     
1 Exchange rate as of 31.12.2001: 1 ЕUR = BGN 1.95583; 1 USD = BGN 2.219G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 64
I. TRANSPORT
1. Railway Transport
1. Title of the subsidy programme
Assistance to Bulgarian State Railways Company
2. Period covered by the notification
2001
3. Policy objective and/or purpose of the subsidy
Support for the reorganization and rehabilitation of the railway transport system and
Bulgarian State Railways Company - assistance for partial covering of  losses of its transport activity,
for maintenance of railway infrastructure and for compensations of passenger travels by rail transport.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2001 (State Gazette No 8 of 26.01.2001);
Council of Ministers Decree No 8 of 17.1.2001 on the State Budget Implementation;
Laws on the Loan Contracts with the International Financial Institutions, ratified by the
National Assembly on 31.01.1996 (SG No 12/96); 03.02.1999 (SG No 12/99);Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning the state
obligations on loans and guarantees’ agreements;
Authorities responsible for the subsidy: Ministry of Finance, Ministry of Transport and
Communications.
5. Form of the subsidy
Grant, loan guarantee.
6. To whom and how the subsidy is provided
Grants were provided to the Bulgarian State Railways Company for its readjustment within
the Program for rehabilitation of activities related to  the maintenance, repairing and exploitation of the
railway infrastructure; renovation of 250 km. railway  road to be in compliance with the European
standards; closing of secondary and performing at a loss lines and sectors of the railway network
(about 304 km.); separation of the repairing-rehabilitation activities from the railway system; gradual
abolishment of the preferential conditions for passengers transportation.
State guarantees up to 100 per cent were provided on the loans extended  by the International
Financial Institutions for the  restructuring and stabilization of the Bulgarian State Railways Company.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 65
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes an obligation on a loan guarantee after receiving the Parliament's approval for
conclusion of a loan guarantee agreement, ratified by the law.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants-BGN 60.0 mln.; Loan guarantees on th e instalments in 2001 amounted BGN 3.00 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
Grants – duration within 2001.For the loan guarantees on the long-term loans (extended by the International Financial
Institutions) terms are specified for each loan case (some loans have a long-term grace period).
9. Statistical data permitting an assessment of the trade effects of the subsidy
It can be assumed that the subsidy programme has minimal trade effects.
2. Urban and Inter-Urban Passenger Transport
1. Title of the subsidy programme
Assistance to Urban and Inter-Urban  passenger transport
2. Period covered by the notification
2001
3. Policy objective and/or purpose of the subsidy
Support to Sofia-City passenger transport and in ter-urban transport in the country for partial
covering of losses  from passenger activities.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2001 (State Gazette No 8 of 26.01.2001);
Council of Ministers Decree No 8 of 17.1.2001 on the State Budget Implementation;
Ordinance of the Ministry of Finance on the managing of subsidies for inter-towns passengertransport and inter passenger transport in the rare populated mountain and border
municipalities (updated every year);
Authorities responsible for the subsidy: Ministry of Transport and Communications, Ministry
of Finance, Ministry of Regional Development and Public Works, Municipalities.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 66
5. Form of the subsidy
Grant.
 6. To whom and how the subsidy is provided
To all passenger transport companies through th e Sofia-City Municipality and Municipalities
after meeting the criteria stipulated in the Ministry of Finance’s Ordinance in order to obtain grants for
the services they provide.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 20.78 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
2001
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
3. Maritime transport
1. Title of the subsidy programme
Assistance to the maritime transport
2. Period covered by the notification
2001
3. Policy objective and/or purpose of the subsidy
Construction enlargement of the sea port Burgas.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the Loan Contract with the IFI, ratified by the National Assembly on 22.7.1998 (SG
No 88/98);
Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning  the state
obligation on the loans and guarantees’ agreements;
Authority responsible for the subsidy: Ministry of Transport and Communications.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 67
5. Form of the subsidy
Loan guarantee.
6. To whom and how the subsidy is provided
State guarantees up to 100 per cent were provided on the loans extended by the International
Financial Institution and consigned to the Sea Port Burgas Company.
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes obligation on a loan guarantee after receiving the Parliament's approval for conclusion
of a loan guarantee agreement, ratified by the law.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loan guarantees on the instalments in 2001 amounted to BGN 1.07 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
2001
9. Statistical data permitting an assessment of the trade effects of the subsidy
It can be assumed that the trade effects are minimal.
II. ENERGY
1. Central Heating and Coal
1. Title of the subsidy
Assistance to Central Heating and Coal Companies
2. Period covered by the notification    
2001
3. Policy objective and/or purpose of the subsidy
Assistance to energy enterprises producing coal, briquettes  and central heating energy in
conformity with the National Strategy for Long-term  Development of the Energy Sector. The strategy
provides for the restructuring and privatization of the energy sector and energy efficiency until 2010,
and the gradual cutting- off of the subsidies for this sector.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 68
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2001 (State Gazette No 8 of 26.01.2001);
Council of Ministers Decree No 8 of 17.1.2001 on the State Budget Implementation;
Council of Ministers Decree No 195/26.9.2000 for technical liquidation and overcoming of
harmful consequences after cutting or limitation of current activity in coal-mining sector;
Council of Ministers Decision 235/09.04.2001 for in creasing of liquidity capital to coal
mining units in liquidation;
Authorities responsible for the subsidy: Ministry of Energy and Energy Resources, Ministryof Finance.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
The subsidy is granted to companies producing coal and briquettes and to central heating
companies for compensation of the regulation of retail prices by the Council of Ministers, fortechnical liquidation and conservation of poor deposit coal units, for increasing of liquidity capital to
coal-mining units in liquidation.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 93.29 mln.
8. Duration of a subsidy and/or any other time limits attached to it
2001
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
2. Electricity
1. Title of the subsidy
Reconstruction, modernization and developmen t of the National electricity network
2. Period covered by the notification   
2001G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 69
3. Policy objective and/or purpose of the subsidy
Improvement of the operation of main and supporting energy systems, adjustment of the
National Electricity Company to the market conditions, putting into operation of new power units.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the Loan Contract with the IFI, ratified by the National Assembly on 30.7.1993.
Council of Ministers Decree No 482 of 19.12.1997 (SG No 125/97) concerning  the state
obligation on the loans and guarantees’ agreements.
Authorities responsible for the subsidy: Ministry of Energy and Energy Resources, Ministry
of Finance.
5. Form of the subsidy
Loan guarantee.
6. To whom and how the subsidy is provided
State guarantees up to 100 per cent were provided on the loans extended by the International
Financial Institutions and consigned to the National Electricity Company.
According to the Decree of Council of Ministers No 482 of 19.12.1997 (SG No 125/97) the
state assumes obligation on a loan guarantee after receiving the Parliament's approval for conclusionof a loan guarantee agreement, ratified by the law.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loan guarantee on the instalments in 2001 amounted BGN 5.54 mln.
8. Duration of a subsidy and/or any other time limits attached to it   
The loan guarantee terms are specified for each loan case.
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 70
III. MINING AND METALLURGY
1. Ore-mining
1. Title of the subsidy
Assistance to Ore-mining Units
2. Period covered by the notification
2001
3. Policy objective and/or purpose of the subsidy
Assistance for the reorganization of ore-mining sector, liquidation of capacities of poor
deposit ore output units and closing down and eliminating the harmful effect of production and
processing of uranium output and waste.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2001 (State Gazette No 8 of 26.01.2001);
Council of Ministers Decree No 8 of 17.1.2001 on the State Budget Implementation;
Council of Ministers Decrees No 140/1992 and No 74/1998 for the elimination of the harmful
effect of production and processing of ore and uranium output and waste;
Authorities responsible for the subsidy:  Ministry of Economy, Ministry of Energy and Energy
Resources.
5.  Form of the subsidy
Grant.
6.  To whom and how the subsidy is provided
To ore mining and uranium units in liquidation.
7.  Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy:
Total amount budgeted BGN  26.38 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
2001
9. Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 71
IV. COMMUNICATIONS
1. Post and Telecommunications
1. Title of the subsidy
Assistance to the Bulgarian Post Compan y and Bulgarian Telecommunication Company
2. Period covered by the notification
2001
3. Policy objective and/or purpose of the subsidy
Assistance for compensation of losses of the Bulgarian Post Company and Bulgarian
Telecommunication Company arising from the provision of services of general interest.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2001 (State Gazette No 8 of 26.01.2001);
Council of Ministers Decree No 8 of 17.1.2001 on the State Budget Implementation;
Telecommunication Act (SG No 93/11.08.1998).Authorities responsible for the subsidy: Ministry of Transport and Communications, ICT
Development Agency at the Ministry  of Transport and Communications.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
Bulgarian Post Company and Bulgarian Telecommunication Company to provide services of
general interest.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 4.56 mln.
8. Duration of a subsidy and/or any other time limits attached to it
2001.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 72
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
V. ENVIRONMENT
1. Soil and Water Pollution
1. Title of the subsidy
Assistance for reduction of soil and water pollution
2. Period covered by the notification
2001
3. Policy objective and/or purpose of the subsidy
Reduction of the polluting effect of the wastes on the soil and water through establishment of
equipment for reprocessing and recycling, through building of water purification stations in order to
restore the normal quality of the environment.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Environmental  Protection Act (SG No 86/18.10.1991) amended SG No 100/1992;
31,63/1995; 13,85,86/1997;  62/1998, 12/1999;
Protocols of the 2001 sessions of the Management Council of the National Fund for
Environmental Protection for reduction of the harmful impact of waste.
Authorities  responsible for the subsidy: Ministry of Environment and Water, National Fund
for Environmental Protection.
5.  Form of the subsidy
Soft loans (average grace period of 24 months and average repayments of 3 years).
6.  To whom and how the subsidy is provided
Through the National Fund for Environmental Protection to all firms and companies - on a
tender base, introducing equipment for reduction of soil and water pollution.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Loans extended BGN 9.54 mln.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 73
8.  Duration of a subsidy and/or any other time limits attached to it
The terms are specified for each soft loan case.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
VI. EMPLOYMENT AND SOCIAL PROTECTION
1. Encouragement of Employment
1. Title of the subsidy
Encouragement of employment
2. Period covered by the notification   
2001
3. Policy objective and/or purpose of the subsidy
Encouragement of the employers to hire different categories of unemployed persons (young
persons with higher, secondary or basic education, unemployed on a part time basis, long time
unemployed persons etc.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2001 (State Gazette No 8 of 26.01.2001);
Council of Ministers Decree No 8 of 17.1.2001 on the State Budget Implementation;
Law on Protection against Unemployment and Em ployment Promotion (art.59.1., art.61) (SG
120/16.12.1997);
Council of Ministers Decree N 206/03.10.2000 fo r funding the implementation of programs
and measures for employment promotion and professional qualification;Authorities responsible for the subsidy: Ministry of Labor and Social Policy, Ministry of
Finance.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
Subsidies are provided through the National Employment Agency and the Professional
Qualification and Unemployment Fund to the employ ers (natural persons and legal entities) who meetG/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 74
the requirements for employment of different categories of unemployed persons and programs for
employment:
Reimbursement to the companies made by the Professional Qualification and Unemployment
Fund of the expenses (up to the amount of the minimal salary) and due social insurance contributions
for hiring unemployed persons through labor contracts.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 2.85 mln.
8. Duration of a subsidy and/or any other time limits attached to it    
2001
9. Statistical data permitting an assessment of the trade effects of the subsidy
It is considered that the trade effects are minimal because of the purpose of the subsidy.
2. Assistance to low populated areas
1. Title of the subsidy
Assistance to low populated areas for foodstuff supply
2. Period covered by the notification   
2001
3. Policy objective and/or purpose of the subsidy
Assistance for covering the transport costs arising from the provision of services of general
interest for direct deliveries of bread and basic food to mountain, border areas and small villages with
population below 500 residents.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2001 (State Gazette No 8 of 26.01.2001);
Council of Ministers Decree No 8 of 17.1.2001 on the State Budget Implementation;
Authorities responsible for the subsidy:  Ministry of Finance, Central Cooperative Union.
5. Form of the subsidy
Grant.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 75
6. To whom and how the subsidy is provided
Through the Central Cooperative Union to all transport companies for the delivery of bread
and basic food to mountain, border areas and small villages.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 4.60 mln.
8.  Duration of a subsidy and/or any other time limits attached to it   
2001
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
VII. AGRICULTURE
1.  Agricultural products
1.  Title of the subsidy
Assistance to the agricultural producers through the Agriculture State Fund
2. Period covered by the notification
2001
3. Policy objective and/or purpose of the subsidy
Create economic conditions for implementation of the state policy for rehabilitation and
building up of a market-orientated viable agricultural sector.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2001 (State Gazette No 8 of 26.01.2001);
Law on Support of Agricultural Producers (last amendment SG No 58 of 2.05.1998).
Authorities responsible for the subsidy: Ministry of Agriculture and Forestry, AgricultureState Fund.
5.  Form of the subsidy
Grant, loan.G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 76
6.  To whom and how the subsidy is provided
The subsidies are provided through the Agriculture State Fund at the Ministry of Agriculture
and Forestry to all entities registered in the Agricultural Producers Register, producing agricultural
products for market sale.
The subsidies are granted for the wheat crop 2001, sunflower and sugar beet, for stimulation
of investments under different programs, for cattle breeding, for partial subsidizing of interest rates on
the credits extended by the trade banks to the agricultural producers.
Short-term loans – for spring and autumn wheat campaign and investments.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Grants - BGN 43.88 mln.; Short-term loans - BGN 28.45 mln.
8. Duration of a subsidy and/or any other time limits attached to it
2001
9. Statistical data permitting an assessment of the trade effects of a subsidy
Information on the trade effect of the subsidy is not available.
2. Development of tobacco production
1. Title of the subsidy:
Development of tobacco production
2. Period covered by the notification
2001
3. Policy objective and/or purpose of the subsidy
Assistance  to tobacco producers for the implementation of the state policy on development of
tobacco production.
4. Background and authority for the subsidy (incl. identification of the legislation under which it
is granted)
Law on the State Budget for 2001 (State Gazette No 8 of 26.01.2001);
Law on Tobacco and Tobacco Products of 30.11.93 (SG No 101/93), last amendment of
21.1.2000 (SG No 33/2000);G/SCM/N/25/BGR, G/SCM/N/38/BGR,
G/SCM/N/48/BGR, G/SCM/N/60/BGR,
G/SCM/N/71/BGR
Page 77
Council of Ministers Decree No 48 of 22.3.94 amended by the CM Decree No 328 of
30.12.94 on the regulation of activity, accumulating and spending the resources of Tobacco
State Fund;Authorities responsible for the subsidy: Ministry of Agriculture and Forestry, Tobacco  State
Fund.
5.  Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
The assistance is provided through the Tobacco  State Fund at the Ministry of Agriculture  and
Forestry to all tobacco producers registered under the Law on Tobacco and Tobacco Products in the
National Register of the tobacco producers. Each tobacco producer receives a Certificate forregistration for its determined quota. They receive seeds free of charge. For regulation of the tobacco
production, a premium from Tobacco State Fund is envisaged for quality and breeding of specific
brands with a market demand.
The assistance is intended under different objectives to support the production and delivery of
tobacco seeds to the producers; granting a bonus free of charge to the tobacco producers for
processing and realization of tobacco harvested in 2001 and buying unsold raw tobacco harvested in
2000.
7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted
for that subsidy
Total amount budgeted BGN 73.63 mln.
8.  Duration of a subsidy and/or any other time limits attached to it
2001.
9.  Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
__________