IMF Presented Ultimatum To Energy Monopolies

The new Energy Act is to be passed by the Parliament till mid-March while the amendments provide the electricity price will cover the primal cost since 2002. This was said yesterday by the IMF team leader Yuha Kaekoenen at the closing press-conference before his departure. This is the only way that the IMF board could approve the review of the three-years fund agreement at the end-March', he continued. 'The IMF require the liberalization of the electricity and natural gas market. The monopoly of Bulgargas and NEC will drop and foreign companies will be able to trade in Bulgaria. Agreement on the legal amendments in the energy branch must be reached with the World Bank, but the preferences for the domestic deals should be reduced', Kaekonen said. 'The GDP and economic activity growth is 11% in comparison with 1997, the inflation is under control, half of the state-owned companies are already privatized, as well as the bank assets. These are remarkable results, Yuaha Kaekoenen said. The 5% growth of the GDP, the hamper of the current account deficit at the 1999 level, Bulbank's privatization and the breaking up of the energy branch monopoly are amongst the largest achievements of the Cabinet', Mr Kaekoenen said. 'The unemployment's rate is high, but it will be possibly lowered, because of the rapid growth in the economy, expected to be 5% for 2001', Kaekoenen considers. In his view, the negatives of the Cabinet are the impeded reforms in the energy sector and the postponement of the privatization of BTC (Bulgarian Telecommunications Company) and Bulgartabak.
Stephan Kioutchukov
skioutchukov@standartnews.com

Your Comment