WORLD TRADE  
ORGANIZATION  G/SCM/N/95/BGR/Suppl.1 
4 October 2004 
 (04-4147) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the SCM Agreement  
 
BULGARIA 
 
Supplement  
 
 
 The following communication, dated 30 September 2004, is being circulated at the request of 
the Delegation of Bulgaria.  
_______________ 
 
 
 In accordance with Article 25 of the Agre ement on Subsidies and Countervailing Measures 
and Article XVI:1 of GATT 1994, the Government of  the Republic of Bulgaria hereby submits its 
updating notification on subsidies for the financial year 2003.  All data concerning the amounts of 
subsidies are given in Bulgarian new levs (BGN).  G/SCM/N/95/BGR/Suppl.1 
Page 2  
 
 TABLE OF CONTENTS  
Page
 
 
I. TRANSPORT...................................................................................................................... ......3  
1. Railway Transport.............................................................................................................. ......3  
2. Urban and Inter-Urban Passenger Transport .......................................................................4  
3. Maritime transport ............................................................................................................. ......5  
4. Air traffic management ......................................................................................................... ...6 
II. ENERGY ......................................................................................................................... ..........7  
1. Central Heating and Coal ....................................................................................................... .7 
2. Electricity.................................................................................................................... ...............8  
III. MINING......................................................................................................................... ............9  
1. Ore-mining ..................................................................................................................... ...........9  
IV. COMMUNICATIONS ...........................................................................................................11  
1. Post and Communication Services ........................................................................................11  
V. ENVIRONMENT.................................................................................................................... 12 
1. Soil and Water Pollution ....................................................................................................... .12 
VI. EMPLOYMENT AND SOCIAL PROTECTION ...............................................................13  
1. Employment ..................................................................................................................... .......13  
2. Assistance to low-populated areas.........................................................................................14  
VII. AGRICULTURE .................................................................................................................... 15 
1. Agricultural Products.......................................................................................................... ...15 
2. Development of Tobacco Production ....................................................................................16  
  G/SCM/N/95/BGR/Suppl.1 
 Page 3 
 
 
 I. TRANSPORT 
1. Railway Transport 
1. Title of the subsidy programme  
 
 Assistance to the Bulgarian State Ra ilways Single Joint Stock Company. 
 
2. Period covered by the notification  
  2003.  
3. Policy objective and/or purpose of the subsidy
  
  Assistance to Bulgarian Stat e Railway Single Joint Stock  Company for compensation of 
passenger travels by railway transport.   
4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
 
− Law on State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected 
SG No. 2/2003;  amended SG No. 16/2003). 
 
− Council of Ministers' Decree No. 16 of 30.01.2003 on State Budget Implementation. 
 
− Law on Railway Transport (SG No. 97/2000). 
 
− Council of Ministers' Decree No. 295/2001 on dete rmination of groups of passengers eligible 
to travelling by railway in the country at reduced fares.  
 
− Council of Ministers' Decree No. 311/2001 on adoption of Ordinance on the terms of 
entrusting the execution of general-interest services. 
 
− Council of Ministers' Decree No. 236 of 24.10.2003 on granting additional financial aid to the 
Bulgarian State Railway Single Joint Stock  Company. 
 
Authorities responsible for the subsidy:  Ministry of Transport and Communications;  
Ministry of Finance.  
5. Form of the subsidy 
 
  Grant.
1 
 6. To whom and how the subsidy is provided
 
 
 The grant was provided to the Bulgarian Stat e Railway Single Joint Stock Company being a 
railway passengers' carrier in the country to comp ensate passenger travels by railway transport.  
 
                                                      
1 The state guaranteed loan scheme for restru cturing and stabilization of the National Railway 
Infrastructure Company as notified in G/SCM/N/95/BGR has been discontinued. G/SCM/N/95/BGR/Suppl.1 
Page 4  
 
 7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted 
for that subsidy  
  Grant – BGN 100.50 mln.  
8. Duration of a subsidy and/or any other time limits attached to it 
  
  Grant – within 2003.  9. Statistical data permitting an assessmen t 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 
 
  2003. 
 
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 arising from passengers’ transportation activities.   
 
4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
 
− Law on State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected 
SG No. 2/2003;  amended SG No. 16/2003. 
 
− Council of Ministers' Decree No. 16 of 30.01.2003 on State Budget Implementation. 
 
− Ordinance of the Ministry of Finance (update d every year) on the management of subsidies 
for inter-town passenger transport and inter-p assenger transport in the rarely populated 
mountain and border municipalities. 
  Authorities responsible for the subsidy:  Mini stry 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 th rough the Sofia-City municipality and other 
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/95/BGR/Suppl.1 
 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 BGN 17.00 mln.  
8. Duration of a subsidy and/or any other time limits attached to it 
  
  2003.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 
 It is considered that the trade effects ar e minimal because of the purpose of the subsidy.   
 
3. Maritime transport 
1. Title of the subsidy programme  
 
 Assistance to Navigation Maritime  Bulgare Joint Stock Company. 
 2. Period covered by the notification 
 
  2003. 
 
3. Policy objective and/or purpose of the subsidy
 
  One-time assistance granted for the implementa tion of the restructuring plan to restore the 
long-term viability of Navigation Maritime Bulg are Joint Stock Company within a reasonable 
timescale.  
 4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
 
− Law on State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected 
SG No. 2/2003;  amended SG No. 16/2003). 
 
− Council of Ministers' Decree No. 16 of 30.01.2003 on State Budget Implementation. 
 
− Organic Budget Act (Art. 35.2 and Art. 28.1), SG No. 67/1996;  last amended 
SG No. 74/2002. 
 
− Council of Ministers' Decree No. 308 of 19.12.2003 concerning the one-time assistance 
granted to the Navigation Maritime Bulgare Joint Stock Company. 
 
 Authority responsible for the subsidy:  Mini stry of Finance, Ministry of Transport and 
Communications.  5. Form of the subsidy
 
 
 Grant. 
 G/SCM/N/95/BGR/Suppl.1 
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 6. To whom and how the subsidy is provided
 
  Navigation Maritime Bulgare Joint Stock Company.  7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted 
for that subsidy  
  BGN 38.00 mln.  8. Duration of a subsidy and/or any other time limits attached to it 
  
 
 2003.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 
 Information on the trade effect of the subsidy is not available. 
 
4. Air traffic management 
1. Title of the subsidy programme  
 
 Assistance to the Air Traffic Management Company (ATMC).  
2. Period covered by the notification 
 
  2003.  
3. Policy objective and/or purpose of the subsidy
 
  Tax remission for the implementation of the European integration and harmonization 
programmes (EATCHIP, ECIP, Eurocontrol) in the field of air traffic management activities.  
 4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
 
− Law on State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected 
SG No. 2/2003;  amended SG No. 16/2003). 
 
− Council of Ministers' Decree No. 16/ of 30.01.2003 on State Budget Implementation. 
 
− Corporate Income Tax Act (Art. 61b), SG No. 115/1997;  amended SG No. 109/2003. 
 
− Civil Aviation Law – SG No. 94/1972, amendments SG No. 34/2001 and No. 111/2001. 
 
− Ordinance No. 140/2001, issued by the Minister of Finance and the Minister of Transport and 
Communications stipulating the terms of main tenance, expenditure and accounting of the 
above-mentioned ATMC corporate income tax remission (SG No. 110/2001). 
 
 Authority responsible for the subsidy:  Ministry of Transport and Communications. 
  G/SCM/N/95/BGR/Suppl.1 
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 5. Form of the subsidy  
  Tax remission of 60 per cent of the ATMC corporate income tax due for 2002. 
 
6. To whom and how the subsidy is provided
 
 
 Air Traffic Management Company.  7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted 
for that subsidy  
 
 BGN 5.88 mln.  8. Duration of a subsidy and/or any other time limits attached to it 
  
 
 2003. 
 9. Statistical data permitting an assessmen t 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    
  2003.  3. Policy objective and/or purpose of the subsidy
 
 
 Assistance to energy enterprises producing coal a nd central heating energy in conformity with 
the Energy Strategy of the Republic of Bulgaria (w hich replaced the "National Strategy for long-term 
Development of the Energy Sector until 2010"). The Energy strategy provides for the restructuring of 
the energy sector, deregulation and privatisation, br inging the management practice in line with up-to-
date standards and gradual cutting-o ff of the subsidies to this sector. 
 4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
 
− Law on State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected 
SG No. 2/2003;  amended SG No. 16/2003). 
 
− Council of Ministers' Decree No. 16 of 30.01.2003 on State Budget Implementation. 
 
− Council of Ministers' Decree No. 279/2002 on the Energy strategy, approved by the National 
Assembly (SG 71/2002). 
 G/SCM/N/95/BGR/Suppl.1 
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 − Council of Ministers' Decree No. 237 of 24.10. 2003 (SG 96/2003) on additional assistance to 
central heating energy enterprises during the heating season 2003-04). 
 
− Council of Ministers' Decree (CMD) No. 195/2000 on technical liquidation, conservation and 
overcoming of harmful consequences from cutting or  limiting current activity in coal output;  
supplemented by CMD No. 46/2001 and CMD No. 155/2002. 
 
− Instruction of the Ministry of Energy and Energy Resources on technical liquidation, 
conservation of the coal units and environmental rehabilitation. 
  Authorities responsible for the subsidy:  Ministry of Energy and Energy Resources.  5. Form of the subsidy 
 
 
 Grant.  6. To whom and how the subsidy is provided
 
 
 The subsidy was granted to coal-producing co mpanies and to central heating companies for 
compensation of the retail prices regulated by the Council of Ministers, and for the 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 62.84 mln.   8. Duration of a subsidy and/or any other time limits attached to it
   
 
 2003. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  It is considered that the trade effects ar e minimal because of the purpose of the subsidy.   
 
2. Electricity 
1. Title of the subsidy programme
 
 
 Rehabilitation and modernisation of the elect ricity transmission network – Energy 2. 
 
2. Period covered by the notification  
  2003.  3. Policy objective and/or purpose of the subsidy
 
 
 Strengthening of the national electricity tran smission network, the regional control centres 
and the communication system of the National Electricity Company as part of the programme for preparation, until 2007, of the Bulgarian electricity  transmission network for the parallel work with 
the unified European electricity transmission systems.  
  G/SCM/N/95/BGR/Suppl.1 
 Page 9 
 
 
 4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
 
− Law on Loan Contract with the IFI, ratified by the National Assembly on 10.05.2003 
(SG 47/2002). 
 
− 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:  Minist ry 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 guarantee up to 100 per cent was provided on the loan extended by the International 
Financial Institution 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 guarantee on the instalments in 2003 amounted to BGN 5.37 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 assessmen t of the trade effects of the subsidy 
 
  It is considered that the trade effects ar e minimal because of the purpose of the subsidy. 
 
III. MINING 
1. Ore-mining 
1. Title of the subsidy 
 
 
 Assistance to Ore-mining Units. 
 
2. Period covered by the notification  
  2003.  G/SCM/N/95/BGR/Suppl.1 
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 3. Policy objective and/or purpose of the subsidy 
 
  Assistance for the reorganization of the ore- mining sector, liquidation of capacities of poor 
deposit ore output units, closing dow n and eliminating the harmful effect of the 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 State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected SG No. 2 of 
2003;  amended SG No. 16/2003); 
 
− Council of Ministers' Decree No. 16 of 30.01.2003 on State Budget Implementation. 
 
− Council of Ministers' Decrees No. 140/1992 (S G 61/1992) for restructuring of ore-mining 
sector and gradual closing of poor deposit ore output units;  last amendment SG 62/2003. 
− Ordinance on the terms of paying of funds  for closing down, technical liquidation, 
conservation of capacities of poor deposit ore output units and elimination of the harmful 
impact of the production and processing of ore output (issued by the Ministry of Finance in 
1992). 
− Council of Ministers' Decrees No. 74/1998 (SG 39/ 1998) on elimination of the harmful effect 
of the production and processing of ore and ur anium output and waste;  last amendment 
SG 48/2000. 
 
Instruction for organization of the system fo r monitoring of environmental rehabilitation of 
uranium output in the regions concerned (issued by the former Energy Committee in 1992), carried 
out by the Ministry of Energy and Energy Resources.   Authorities responsible for the subsidy:   Ministry of Energy and Energy Resources;  Ministry 
of Economy;  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 a process of technical conservation and 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  12.73 mln.  
 8. Duration of a subsidy and/or any other time limits attached to it
 
  2003. 
  G/SCM/N/95/BGR/Suppl.1 
 Page 11 
 
 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Information on the trade effects of  the subsidy is not available. 
 
IV. COMMUNICATIONS 
1. Post and Communication Services 
1. Title of the subsidy
 
 
 Assistance to the Bulgarian Post Company and Bulgarian News Agency. 
 
2. Period covered by the notification   
  2003.  3. Policy objective and/or purpose of the subsidy 
 
 
 Assistance to the Bulgarian Post Company and Bulgarian News Agency 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 State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected 
SG No. 2/2003;  amended by SG No. 16/2003). 
 
− Council of Ministers' Decree No. 16 of 30.01.2003 on State Budget Implementation. 
 
− Law on Postal Services (SG 64/04.08.2000, last amendment of 2003). 
 
− Statute of the Bulgarian News Agency, SG 56/1994. 
  Authorities responsible for the subsidy:  Mini stry of Transport and Communications through 
the Commission for Regulation of Communication;  National Assembly.  5. Form of the subsidy
 
 
 Grant.  6. To whom and how the subsidy is provided
  
  Bulgarian Post Company and Bulgarian News Agen cy 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 4.30 mln. 
 
8. Duration of a subsidy and/or any other time limits attached to it
  
  2003. G/SCM/N/95/BGR/Suppl.1 
Page 12  
 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
  
  It is considered that the trade effects ar e 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  
  2003.   3. Policy objective and/or purpose of the subsidy
 
 
 Reduction of the polluting effect of waste on soil and water through the establishment of 
equipment for reprocessing and recycl ing, building of water treatment plants 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) last amended SG No. 3/2003; 
− Rules on the organization and the activity of the Enterprise for management of environmental 
protection activities, adopted by Council of Ministers' Decree No. 319/29.12.2002 (SG No. 3 of 10.01.2003). 
 
− Protocols of the 2003 sessions of the Management  Council of the Enterprise for management 
of environmental protection activities for reduc tion of the harmful impact of waste.  
  Authorities responsible for the subsidy:  Ministry of Environment and Water (MEW), 
Enterprise for management of environmental protection activities at the MEW.  
5. Form of the subsidy
 
  Soft loans.  6. To whom and how the subsidy is provided
 
 
 Through the Enterprise for management of environmental protection activities on a tender 
base to all firms and companies, implementing projects and programmes 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 11.21 mln.   G/SCM/N/95/BGR/Suppl.1 
 Page 13 
 
 
 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 assessmen t of the trade effects of the subsidy
 
 
 It is considered that the trade effects ar e minimal because of the purpose of the subsidy. 
 
VI. EMPLOYMENT AND SOCIAL PROTECTION 
1. Employment 
1. Title of the subsidy  
 
 Encouragement of employment.  
 2. Period covered by the notification 
  
 
 2003.   3. Policy objective and/or purpose of the subsidy
 
  Subsidies were provided for the realisation of national employment promotion programmes 
related to the priorities set out in the Nationa l Economic Development Pl an, the National Regional 
Development Plan and the National Employment Action Plan.  4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
 
− Law on State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected SG No. 2 of 
2003;  amended SG No. 16/2003). 
 
− Council of Ministers' Decree No. 16 of 30.01.2003 on State Budget Implementation. 
 
− National programmes approved in accordance with the Employment Promotion Act – 
Articles 31, 36, 37, 41, 43, 46, 50, 51, 53, 55, 55a, 57;  SG 112/29.12.2001), amended in 
2002, (SG 54/2002). 
  Authorities responsible for the subsidy:  Ministry of Labour and Social Policy (MLSP), Employment Agency at the MLSP;  Ministry of Finance.  5. Form of the subsidy
 
 
 Grant.   6. To whom and how the subsidy is provided
 
 
 The assistance was granted through the Empl oyment Agency to all firms and companies 
hiring the unemployed under different employment promotion programmes.  G/SCM/N/95/BGR/Suppl.1 
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 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 16.57 mln.   
8. Duration of a subsidy and/or any other time limits attached to it 
   
  2003.   9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 
 It is considered that the trade effects ar e 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
 
  2003. 
 
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 and 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 State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected 
SG No. 2/2003;  amended SG No. 16/2003). 
 
− Council of Ministers' Decree No. 16 of 30.01.2003 on State Budget Implementation. 
  Authorities responsible for the subsidy:  Mini stry 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 and 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 2.50 mln.  G/SCM/N/95/BGR/Suppl.1 
 Page 15 
 
 
 8. Duration of a subsidy and/or any other time limits attached to it   
  2003.   9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 
 Information on the trade effects of  the subsidy is not available. 
 
VII. AGRICULTURE 
1. Agricultural Products 
1. Title of the subsidy   
  Assistance to the agricultural producer s through the Agriculture State Fund. 
 2. Period covered by the notification 
 
 
 2003.  3. Policy objective and/or purpose of the subsidy 
 
  Creating conditions for implementation of the st ate policy oriented to effective management 
of resources and development of market-oriente d structures, increasing the competitiveness and the 
sustainable development of the agricultural sector.   4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
 
− Law on State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected 
SG No. 2/2003;  amended SG No. 16/2003). 
 
− Council of Ministers' Decree No. 16 of 30.01.2003 on State Budget Implementation. 
 
− Law on Support of Agricultural Producers (last amendment SG No. 96/2002). 
 
 Authorities responsible for the subsidy:  Mini stry of Agriculture and Forestry, Agriculture 
State Fund.  5. Form of the subsidy 
 
  Grant; loan.  
 
6. To whom and how the subsidy is provided
 
  The support is provided through the Agriculture State Fund at the Ministry of Agriculture  and 
Forestry to all entities registered in the Agri cultural Producers Register, producing agricultural 
products for market sale.  
  The grants are provided for production of grain, rice, oil-bearing cultures, nuts, soybean, potatoes and vegetables, rape, for milk productio n, cattle and poultry breeding, for fertilizers. 
 G/SCM/N/95/BGR/Suppl.1 
Page 16  
 
  The loans are granted for investment in agricu lture within the programmes for plant-growing, 
cattle breeding, purchasing of farming machinery and for partial subsidising of interest rates on the 
credits extended by the commercial ba nks to the agricultural producers.  
 7. Subsidy per unit, or in case where it is not possible, the total amount or the annual budgeted 
for that subsidy  
  Grant – BGN 44.05 mln.  Loan – BGN 12.46 mln.  
8. Duration of a subsidy and/or any other time limits attached to it 
 
  2003.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 
 Information on the trade effects of  the subsidy is not available. 
 
2. Development of Tobacco Production 
1. Title of the subsidy  
 
 Development of tobacco production through Tobacco Fund.  
 2. Period covered by the notification 
 
  2003. 
 
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 State Budget for 2003 (State Gazette No. 120 of 29.12.2002;  corrected 
SG No. 2/2003;  amended SG No. 16/2003). 
 
− Council of Ministers' Decree No. 16 of 30.01.2003 on State Budget Implementation. 
 
− Law on Tobacco and Tobacco Products of 30.11.93 (SG No. 101/93), last amendment of 
21.12.2001 (SG No. 110/2001). 
 
− Decisions No. 324, 325, 875, 876 of 2003 of the Council of Ministers on support of tobacco 
production, tobacco premium crop 2002 and 2003, and for delivery of the crop 2003 tobacco 
seeds. 
 
 Authorities responsible for the subsidy:  Mi nistry of Agriculture and Forestry;  Tobacco  State 
Fund.    G/SCM/N/95/BGR/Suppl.1 
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 5. Form of the subsidy  
  Grant.  6. To whom and how the subsidy is provided
 
 
 The assistance was 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 (they received seeds free of charge).  For regulation of the tobacco production, a premium from the Tob acco State Fund was envisaged for quality and 
growing of specific brands of market demand. 
  The assistance was intended to support the pr oduction and delivery of tobacco seeds, granting 
a premium to the tobacco producers for the 2002 and 2003 tobacco crop produced and delivered. 
 
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 121.97 mln.  
 8. Duration of a subsidy and/or any other time limits attached to it
 
 
 2003.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 
 Information on the trade effects of  the subsidy is not available. 
  
__________