WORLD TRADE  
ORGANIZATION  G/SCM/N/123/BGR 
12 July 2005 
 (05-3107) 
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 Agreement  
on Subsidies and Countervailing Measures  
 
REPUBLIC OF BULGARIA 
  
  The following communication, dated 8 July 2005,  is being circulated at the request of the 
Delegation of the Republic of Bulgaria.   
_______________ 
 
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 the fina ncial year 2004. All data concerning the amounts of 
subsidies is given in Bulgarian new levs (BGN). 
 
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TABLE OF CONTENTS 
 
I.
 TRANSPORT...................................................................................................................... ......3  
1. Railway Transport.............................................................................................................. ......3  
2. Urban and Inter-Urban Passenger Transport .......................................................................4  
3. Inland Waterways Transport ..................................................................................................5  
II. ENERGY ......................................................................................................................... ..........6  
1. Central Heating and Coal ....................................................................................................... .6 
2. Electricity.................................................................................................................... ...............7  
III. MINING......................................................................................................................... ............9  
1. Ore-mining ..................................................................................................................... ...........9  
IV. COMMUNICATIONS ...........................................................................................................10  
1. Posts and communication services ........................................................................................10  
V. ENVIRONMENT.................................................................................................................... 11 
1. Soil and Water Pollution ....................................................................................................... .11 
VI. EMPLOYMENT AND SOCIAL PROTECTION:..............................................................12  
1. Encouragement of employment .............................................................................................12  
2. Assistance to low-populated areas.........................................................................................13  
VII. ASSISTANCE TO ECONOMIC DEVELOPMENT AND STRUCTURAL 
ADJUSTMENT..................................................................................................................... ..14 
1. Rescheduling of tax liabilities related to investment: ..........................................................14  
2. Rescheduling of tax liabilities related  to structural adjustment:........................................15  
3. Support to regional investment: ............................................................................................16  
VIII.  AGRICULTURE: ................................................................................................................... 17 
1. Agricultural products .......................................................................................................... ...17 
2. Development of tobacco production......................................................................................19  
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I. TRANSPORT 
1. Railway Transport 
1. Title of the subsidy programme   
  Assistance to the Bulgarian State Railways Single Joint Stock Company. 
 
2. Period covered by the notification 
 
 2004 
 
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 the State Budget for 2004 (State Gazette No 114 of 30.12.2003; corrected SG No 3/ 
2004; amended SG No 67/2004); 
 Council of Ministers’ Decree No 30 of 06.02.2004 on the State Budget Implementation; 
 
 Law on the railway transport (SG No 97/2000, in force from 01.01.2002); 
  Council of Ministers’ Decree No 295/2001 on the determination of groups of passengers to 
travel by railway in the country at reduced prices;  
 
 Council of Ministers’ Decree No 311/2001 on the adoption of the Ordinance about the terms 
of entrusting the execution of general-interest services;  
  Council of Ministers’ Decision No 474/2004 on the terms of entrusting the execution of 
general-interest services;  
 
 Council of Ministers’ Decree No 185 of 2004 on granting additional financial aid to the 
Bulgarian State Railways Single Joint Stock Company; 
 
 Authorities responsible for the subsidy: Ministry of Transport and Communications 
 
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 The grant was provided to the Bulgarian Stat e Railways Single Joint Stock Company being a 
railway passengers’ carrier in the country to compensate passenger travels by railway 
transport. 
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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  
  Grant - BGN 70.00 mln. 
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  2004   
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  
 2004 
 
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 the State Budget for 2004 (State Gazette No 114 of 30.12.2003; corrected SG No 3/ 
2004 and SG No 67/2004); 
 
 Council of Ministers’ Decree No 30 of 06.02.2004 on the 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: Ministry of Transport and Communications, Ministry 
of Finance, Ministry of Regional Development and Public Works, Municipalities. 
 5. Form of the subsidy
 
 
 Grant.   G/SCM/N/123/BGR 
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6. To whom and how the subsidy is provided  
  To all passenger transport companies throug h the Sofia-City municipality and the other 
municipalities in conformity with the criteria stipulated in the Ministry of Finance’s 
Ordinance for the terms of management of funds 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 10.00 mln. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
 2004 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  It is considered that the trade effect s are minimal because of the purpose of the subsidy 
 3. Inland Waterways Transport 
1. Title of the subsidy programme
 
 
Assistance to Bulgarian Inl and Navigation Company, Russe 
2. Period covered by the notification   
2004  
3. Policy objective and/or purpose of the subsidy  
  Renegotiation of liabilities of the trading compan y arising of the granted temporary financial 
assistance for restructuring under the agreed re payment plan at the condition all interests 
accumulated up to rescheduling date has to be entirely paid. 
 
4.  Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
  Law for Collection of State Receivables (LCSR), SG 26/1996, last amendment SG 46/2002;  
 
 Ordinance of the Minister of Finance No 338/2002 in connection with the provisions of 
LCSR on the terms and procedures for the ne gotiation of the liabilities of the trading 
companies, as well as the assessment criteria;  
  Council of Ministers Decision No 697 of 27 .10.2000 for granting of temporary financial 
assistance for restructuring of the Bulg arian Inland Navigation Company, Russe; 
  Authorities responsible for the subsidy: Council of Ministers, Ministry of Finance.  G/SCM/N/123/BGR 
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5. Form of the subsidy
 
  Rescheduling of liabilities.   
6. To whom and how the subsidy is provided
 
  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  
  State assistance of the total rescheduled amount - BGN 0.30 mln.  8. Duration of a subsidy and/or any other time limits attached to it 
 
 
 30.03.2004 - 30.03.2013.  
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
 
  2004  
3. Policy objective and/or purpose of the subsidy
 
  Assistance to coal producing and central hea ting enterprises in conformity with the Energy 
Strategy of the Republic of Bulgaria. The Energy strategy provides for restructuring of the energy sector until 2006, deregulation and privati sation, bringing the management practice in 
line with up-to-date standards and gradual cu tting-off 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 the State Budget for 2004 (State Gaze tte No 114 of 30.12.2003; corrected SG No 
3/ 2004; amended SG No 67/2004); 
  Council of Ministers’ Decree No 30 of 06.02.2004 on the State Budget Implementation;   G/SCM/N/123/BGR 
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 Council of Ministers’ Decree No 279/2002 on the Energy strategy of the R.Bulgaria, 
approved by the National Assembly (SG 71/2002); 
  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 306/2004 and CMD No 347/2004; 
  Instruction of the Ministry of Energy and Energy Resources on technical liquidation, 
conservation of the coal units and e nvironmental 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 is granted to central heating companies for compensation of the retail prices 
regulated by the Council of Ministers and to coal-producing companies 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 37.51 mln.  
 8. Duration of a subsidy and/or any other time limits attached to it
   
  2004    
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 
 
 
 Rehabilitation and modernization of the el ectricity transmission network - Energy 2. 
 
2. Period covered by the notification   
 
 2004  G/SCM/N/123/BGR 
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3. Policy objective and/or purpose of the subsidy
 
  Strengthening of the national electricity tran smission network, the regional control centers 
and the communication system of the National Electricity Company as part of the programme 
for preparation of the Bulgarian electricity tr ansmission network until 2007 for the parallel 
work with UCTE. 
 4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
 
 Laws on the Loan Contracts with the IFI, ra tified by the National Assembly on 10.5.2002 (SG 
No 47/2002) and 13.02.2003 (SG No 18/2003); 
 
 Law on  the Government Dept , SG No 93/2002;  
 
 Council of Ministers’ Decree No 28 of 07.02.2003 (SG No 15/2003) on the adoption of the 
Ordinance on the requirements to be met by th e investment projects fi nanced by government 
loans and the projects applying for financing by state guarantee, and on the procedure of their consideration. 
 
 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
 
  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 2004 amounted to BGN 28.76 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 are minimal because of the purpose of the subsidy.  
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III. MINING 
1. Ore-mining 
1. Title of the subsidy  
  Assistance to Ore-mining Units.  
2. Period covered by the notification
 
  2004  
 
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 down and elim inating 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 the State Budget for 2004 (State Gazette No 114 of 30.12.2003; corrected SG No 3 of 
2004; amended SG No 67/2004); 
  Council of Ministers’ Decree No 30 of 06.02.2004 on the State Budget Implementation;   Council of Ministers’ Decree No 140/1992 (S G 61/1992) for restructuring of ore-mining 
sector and gradual closing of poor deposit or e 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’ Decree No 74/1998 (SG 39/1998) on the elimination of the harmful 
effect of the production and processing of ore a nd uranium output and waste, amended by SG 
48/2000; 
 
 Instruction for organization of the system fo r monitoring of environmental rehabilitation of 
the uranium output in the regions concerned (issued by the former Energy Committee in 
1992, enacted by the Ministry of Energy and Energy Resources). 
  Authorities responsible for the subsidy:  Ministry of Energy and Energy Resources; Ministry 
of Finance.  
 
5. Form of the subsidy
  
  Grant.  G/SCM/N/123/BGR 
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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  14.00 mln.  
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  2004  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. Posts and communication services  
1. Title of the subsidy  
 
 Assistance to the Bulgarian Post Co mpany and Bulgarian News Agency.  
 2. Period covered by the notification
  
 
 2004 
 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 the State Budget for 2004 (State Gazette  No 114 of 30.12.2003 corrected SG No 3/ 
2004; amended SG No 67/2004); 
  Council of Ministers’ Decree No 30 of 06.02.2004 on the 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. 
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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 4.20 mln.   8. Duration of a subsidy and/or any other time limits attached to it
  
 
 2004.  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
 
  2004   
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 recycling, build ing 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 91/25.09.2002);   
 Rules on the organization and the activity of the Enterprise for management of environmental 
protection activities, adopted by Council of Ministers’ Decree № 319/29.12.2002 (SG No. 3 
of 10.01.2003);  
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 Protocols of the 2004 sessions of the Manageme nt Council of the Enterprise for management 
of environmental protection activities for reduc tion of the harmful impact of waste.  
  Authorities responsible for the subsidy: Mi nistry 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 programs for the 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 9.17 mln.  
 
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. Encouragement of employment 
1. Title of the subsidy 
 
 
 Encouragement of employment.  
 
2. Period covered by the notification   
 
 2004   3. Policy objective and/or purpose of the subsidy
 
  Subsidies were provided for the realizati on of national employment promotion programs 
related to the priorities set out in the Na tional Economic Developm ent Plan, 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 the State Budget for 2004 (State Gazette No 114 of 30.12.2003, corrected SG No 3/ 
2004, amended SG No 67/2004);  G/SCM/N/123/BGR 
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 Council of Ministers’ Decree No 30 of 06.02.2004 on the State Budget Implementation;   National programs approved in accordance with the Employment Promotion Act (art.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 Labor 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 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 27.77 mln.  
 8. Duration of a subsidy and/or any other time limits attached to it 
   
  2004  
 
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   
 
 2004   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 the State Budget for 2004 (State Gazette No 114 of 30.12.2003; corrected SG No 3/ 
2004; amended SG No 67/2004);); G/SCM/N/123/BGR 
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 Council of Ministers’ Decree No 30 of 06.02.2004 on the 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 2.60 mln.   8. Duration of a subsidy and/or any other time limits attached to it 
  
 
 2004  
 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. ASSISTANCE TO ECONOMIC DEVELOPMENT AND STRUCTURAL 
ADJUSTMENT 
1. Rescheduling of tax liabilities related to investment: 
1. Title of the subsidy programme
 
 
 Rescheduling of tax liabiliti es to Varnensko Pivo Company 
 
2. Period covered by the notification  
  2004  
 
3. Policy objective and/or purpose of the subsidy
 
  Regional aid to the company for initial investment and jobs created linked to investment – for 
modernization of existing capacity in or der to ameliorate its efficiency.  
 
4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
  Tax Procedure Code (TPC), SG 103 of 1999; last amendment SG 53/2004;  
 
 State Aid Act (Art. 4 and Art. 15), SG 28/2002; 
  G/SCM/N/123/BGR 
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 Rules on the application of the State Aid Act, Annex No 1 and Annex No 18 (SG 58/2004).     Authorities responsible for the subsidy: Ministry of Finance.  
5. Form of the subsidy
 
  Rescheduling of tax liabilities.   6. To whom and how the subsidy is provided
 
 
 Varnensko Pivo Company.   7. Subsidy per unit or in case where it is not possible, the total amount or the annual budgeted 
for that subsidy  
 
 State assistance of the total rescheduled amount - BGN 2.52 mln.; repayment at annual 
installments and interests due, under the repayment plan. 
 8. Duration of a subsidy and/or any other time limits attached to it 
 
 
 28.03.2004 - 28.01.2009 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
  
  It can be assumed that the trade effects are minimal. 
 
2. Rescheduling of tax liabilities related to structural adjustment: 
1. Title of the subsidy programme
 
  Rescheduling of tax liabilities to Vidachim Company.  
2. Period covered by the notification 
 
  2004   3. Policy objective and/or purpose of the subsidy
 
 
 Assistance for restructuring of the company in  difficulty in accordance with the restructuring 
plan.  
 4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
 
 Tax Procedure Code (TPC), SG 103 of 1999; last amendment SG 53/2004;  
  Social Insurance Code, SG No 110/1999; last amendment SG 70/2004;  
 State Aid Act (Art. 4 and Art. 15), SG 28/2002; 
 G/SCM/N/123/BGR 
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 Rules on the application of the State Aid Act (RASAA) (Annex No 8), SG 58/2004;   Council of Ministers’ Decision No 866/2004.   
 Authorities responsible for the subsidy:  Council of Ministers. 
 5. Form of the subsidy
 
  Integration of public liabiliti es, reduction and rescheduling of  the total liability under the 
procedure of art. 152 of the TPC. 
 6. To whom and how the subsidy is provided
 
  Vidachim Company.  
 
7. Subsidy per unit or in case where it is not possible, the total amount or the annual budgeted 
for that subsidy  
  State assistance of the total rescheduled amount - BGN 16.11 mln.; repayment under the 
repayment plan with annual instalments and interest due. 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
  30.11.2004 - 30.11.2012   
9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
  It can be assumed that the trade effects are minimal.  
3. Support to regional investment: 
1. Title of the subsidy programme
 
 
 Gratuitous transfer of title on lands included in the State land fund. 
 
2. Period covered by the notification   
 
 2004  
 3. Policy objective and/or purpose of the subsidy
 
 
 Regional aid for encouragement of initial i nvestment and jobs created linked to the 
investment. 
 
4. Background and authority for the subsidy (incl.  identification of the legislation under which it 
is granted)  
  State Aid Act (Art. 4 and Art. 15), SG 28/2002; 
 
 Rules on the application of the State Aid Act (RASAA) (Annex No 2), SG 58/2004;   G/SCM/N/123/BGR 
 Page 17 
 
 
  
 State Property Act, SG No 44/1996; last amendment SG No 63/2003;   Ownership and Use of Agricultural Land Act (SG No 17/1991; last amendment SG 16/2003);  
 Council of Ministers’ Decision No 914/2003 for gratuitous  transfer of property right on land, 
private state property, to the Trakia Glass Bulgaria  Company; 
  Regulation on the terms for determination the current market prices of agricultural land (SG 
64/1998). 
 
 Authorities responsible for the subsidy: C ouncil of Ministers, Ministry of Regional 
Development and Public Works, Ministry of Agriculture and Forestry. 
 
5. Form of the subsidy
 
 
 Gratuitous transfer of property right on land (private state property) from the State land fund.   6. To whom and how the subsidy is provided
 
  Trakia Glass Bulgaria Company.  
 
7. Subsidy per unit or in case where it is not possible, the total amount or the annual budgeted 
for that subsidy  
  Amount of the transferred land  - BGN 0.75 mln.  
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
  2004    9. Statistical data permitting an assessmen t of the trade effects of the subsidy
  
 
 It can be assumed that the trade effects are minimal.  
VIII.  AGRICULTURE:  
1. Agricultural products 
1. Title of the subsidy
  
 
 Assistance to the agricultural produ cers through the Agriculture State Fund. 
 
2. Period covered by the notification  
 
 2004 
 G/SCM/N/123/BGR 
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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-ori ented 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 the State Budget for 2004 (State Gazette No 114 of 30.12.2003; corrected SG No 3/ 
2004; amended SG No 67/2004);); 
  Council of Ministers’ Decree No 30 of 06.02.2004 on the State Budget Implementation;  
 Law on Support of Agricultural Producers of 1998 (SG No 58/1998, last amendment SG No 
18/2004); 
  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 support is provided through the Agriculture State Fund at the Ministry of Agriculture  and 
Forestry to all entities registered in th e Agricultural Producers Register, producing 
agricultural products for market sale. 
 
 The grants are provided for production of grain, rice, oil-bearing cultures, nuts, potatoes and 
vegetables, rape, sugar beetroot, for milk production, fertilizers, cattle and poultry fodder 
during winter 2004, for cul tivation of deserted land. 
  The loans are granted for investment in agri culture within the programs for plant-growing, 
cattle breeding, purchasing of farming machinery and for partial subsidising of interest rates 
on the credits extended by the commercia l banks 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 61.74  mln;   
 
 Loan – BGN 12.39 mln. 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
 
 2004 
 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.  G/SCM/N/123/BGR 
 Page 19 
 
 
  
2. Development of tobacco production 
1. Title of the subsidy:  
 
 Development of tobacco production through Tobacco Fund.  
 2. Period covered by the notification
 
  2004  
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 2004 (State Gazette No 114 of 30.12.2003; corrected SG No 3/ 
2004; amended SG No 67/2004);); 
 
 Council of Ministers’ Decree No 30 of 06.02.2004 on the State Budget Implementation; 
  Law on Tobacco and Tobacco Products of 1993 (SG No 101/93, last amendment SG No 
70/2004);  
 
 Decisions No 292, 293, 876, 999 and 1003 of 2004 of the Council of Ministers on support of 
tobacco production, tobacco premium crop 2003 and 2004, and for delivery of the crop 2004 
tobacco seeds. 
  Authorities responsible for the subsidy: Mi nistry of Agriculture and Forestry; Tobacco  Fund.  
 
5. Form of the subsidy
  
  Grant.  6. To whom and how the subsidy is provided
 
 
 The assistance was provided through the Tob acco 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 prod ucers (they received seeds free of charge). For 
regulation of the tobacco production, a premium from the Tobacco 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 th e 2003 and 2004 tob acco crop produced and 
delivered.  
 G/SCM/N/123/BGR 
Page 20  
 
  
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 114.84 mln.  
8. Duration of a subsidy and/or any other time limits attached to it
 
  2004  
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. 
 
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