VZCZCXYZ0009
RR RUEHWEB

DE RUEHSF #0089/01 0231013
ZNR UUUUU ZZH
R 231013Z JAN 06
FM AMEMBASSY SOFIA
TO RUEHC/SECSTATE WASHDC 1185
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUCPCIM/CIMS NTDB WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS SOFIA 000089 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EB/IFD/OIA AND USTR 
TREASURY FOR OASIA 
USDOC FOR 4232/ITA/MAC/EUR/OEERIS/SSAVICH 
 
E.O. 12958:  N/A 
TAGS: EINV EFIN ELAB ETRD KTDB OPIC USTR BU
SUBJECT: BULGARIA 2006 INVESTMENT CLIMATE STATEMENT. 
PART 2 OF 2 
 
Ref:  05 STATE 202943 
 
¶H.  TRANSPARENCY OF THE REGULATORY SYSTEM 
 
Major Taxation Issues Affecting U.S. Businesses 
--------------------------------------------- -- 
Bulgaria and the U.S. have not signed an Avoidance of 
Double Taxation Treaty (DTT), despite strong interest 
by the Bulgarian government. 
 
Personal income tax rates increase progressively from 
20 to 24 percent.  There are three income brackets, 
with a non-taxable personal monthly income of 180 BGN. 
The corporate and profit tax rates are 15 percent. 
Certain tax incentives apply in regions of high 
unemployment.  Individuals and small businesses in 
certain trades pay a "patent" tax (presumptive tax) 
according to a schedule established by Parliament. 
Dividends (and liquidation quotas) distributed by a 
Bulgarian resident company to U.S. investors are 
subject to a withholding tax of 15 percent.  While 
Bulgarian residents face a withholding tax of 7 
percent, a tax resident in an EU member state is not 
subject to a withholding tax. 
 
Employers pay 65 percent of the monthly contributions 
for social security insurance, health insurance and an 
unemployment fund, but their share of contributions is 
slated to decline, in phases, to 50 percent by 2009. 
In 2006, employers and employees will contribute 23.5 
percent and 12.4 percent, respectively, of a given 
salary, to social security insurance, unemployment and 
health insurance.  Foreign persons are required to have 
the same insurance and unemployment compensation 
packages as Bulgarians. 
 
There is a 20 percent single-rate value-added tax 
(VAT).  Legal persons with a taxable income of 75,000 
BGN are obliged to register for VAT purposes.  VAT 
registration is voluntary for persons with taxable 
income of between 25,000 and 75,000 BGN.  All goods and 
services are subject to VAT except exports, 
international transport, and precious metals supplied 
to the central bank.  VAT payments are generally 
rebated when goods are resold.  The 45-day refund 
period for exporters was reduced to 30 days in 2005. 
Excise taxes are levied on tobacco, alcoholic 
beverages, fuels, certain types of automobiles, 
gambling equipment, coffee, and tea. 
 
Foreign investors have asserted that widespread tax 
evasion, combined with the failure of the authorities 
to enforce collection from large state-owned companies, 
places them at a disadvantage.  Another problem 
underscored by investors is the frequent revision of 
tax laws, sometimes without sufficient notice. 
However, in conjunction with its IMF agreement, the 
government is strengthening tax collection and limiting 
tax arrears of state-owned enterprises. 
 
The government launched the National Revenue Agency 
(NRA) on January 1, 2006.  The NRA, which unifies the 
collection of taxes and social security contributions, 
is expected to enhance expenditure control and 
transparency and.  Government officials have also 
indicated their long-term intention to lower marginal 
rates as tax collection improves. 
 
Regulatory Environment 
---------------------- 
 
The multiplicity of Bulgarian licensing and regulatory 
regimes and the arbitrary interpretation and 
enforcement of them by the bureaucracy continues to 
create incentives for corruption and has long been seen 
as an impediment to investment, private business 
development and market entry. 
 
The 2003 Restriction of Administrative Regulation and 
Control of Economic Activity Act establishes a general 
and systematized set of rules for simplifying and 
implementing administrative regulations.  The law 
defines 39 operations that must be licensed and 
introduces two other simplified regimes, i.e., 
registration and permit regimes. 
 
From the perspective of regulatory relief, this law is 
a milestone.  It sets forth firm market principles of 
regulation, such as that regulation at all levels of 
government must be justified by defined need (in terms 
of national security, environmental protection, or 
personal and material rights of citizens) and cannot 
impose restrictions unnecessary to the stated 
purposes of the regulation.  The law also requires that 
the regulating authority take account of the compliance 
costs to be borne by business and that no national 
level law can be passed without an impact analysis on 
the law's economic affect on the regulated activity. 
In addition, the law eliminates bureaucratic discretion 
in granting applications for routine economic 
activities and provides for "silent consent" when the 
government has not acted upon an application in the 
allotted time.  All of these reforms considerably 
lighten the potential of regulatory abuse at all levels 
of government, business environment will be improved 
once the law is fully implemented. 
 
Energy Regulator 
---------------- 
 
The Energy Law enacted in 2003 established a 
transparent and predictable regulatory environment in 
the energy sector where the key regulatory 
responsibilities are vested with the State Energy 
Regulatory Commission (SERC) - a separate body with 
regulatory authorities and a high degree of autonomy 
and accountability. 
 
Competition Policy 
------------------ 
 
The 1998 Law on the Protection of Competition (the 
"Competition Law") is intended to establish and 
maintain a competitive market.  The Competition Law 
forbids monopolies, restraining agreements, trade 
restrictive practices, abuse of a dominant market 
position, and unfair competition, and seeks to promote 
consumer protection.  A company is deemed to have a 
dominant position if it controls 35 percent or more of 
the relevant market.  A company with a dominant market 
position is prohibited from: certain pricing practices; 
limiting manufacturing development to the detriment of 
consumers; discriminatory treatment of competing 
customers; tying contracts to additional and unrelated 
obligations; and the use of economic coercion to cause 
mergers.  The Law prohibits five specific forms of 
unfair competition: damaging competitors' goodwill; 
misrepresentation with respect to goods or services; 
misrepresentation with respect to the origin, 
manufacturer, or other features of goods or services; 
the use or disclosure of someone else's trade secrets 
in violation of good faith commercial practices; and 
"unfair solicitation of customers" (promotion through 
gifts and lotteries), which may create difficulties for 
some foreign enterprises. 
 
The Competition Law was overhauled in 2003, introducing 
important provisions that expand the competency of the 
Commission for Protection of Competition (CPC), define 
the prohibition on misuse of an oligopoly, and impose a 
single criterion for assessing the significance of 
planned concentration: the aggregate turnover of the 
enterprises affected by the concentration. 
 
¶I. EFFICIENCY OF CAPITAL MARKETS/PORTFOLIO INVESTMENT 
 
Since 1997, the Bulgarian Stock Exchange (BSE) has 
operated under a license from the Securities and Stock 
Exchange Commission (SSEC).  The 1999 Law on Public 
Offering of Securities regulates issuance of 
securities, securities transactions, stock exchanges, 
and investment intermediaries.  Comprehensive 
amendments to this Law (99 in number), which were 
promulgated in June 2002, establish significant rights 
for minority shareholders of publicly-owned companies 
in Bulgaria.  In addition, they create an important 
foundation for the adoption of international best 
practices and corporate governance principles in public 
companies. 
 
The infrastructure of the stock exchange has been 
substantially improved, including the establishment of 
an official index (SOFIX).  New trading instruments 
(government bonds, corporate bonds, Bulgarian 
Depositary Receipts, municipal and mortgage- 
backed bonds, and privatization through the stock 
exchange) have been introduced.  As a result of 
appreciation of nearly all of the most actively traded 
issues on the Bulgarian Stock Exchange, its 
capitalization more than doubled from 4 billion BGN 
(USD 2.5 billion) in 2004 to 8.4 billion BGN (USD 5.3 
billion) or 20 percent of GDP.  Nonetheless, the stock 
exchange generally lacks attractive securities and 
faces low liquidity. 
 
The Banking System 
------------------ 
 
The Bulgarian banking system has undergone considerable 
transformation since its virtual collapse in 1996 and 
continues to mature.  There are 34 commercial banks, 
with total assets of 30.5 billion BGN (USD 19.1 
billion) or 73 percent of the estimated 2005 GDP.  Bank 
intermediation, measured by total bank assets to GDP, 
has doubled over the past five years. 
 
Bulgaria has completed the privatization of its state- 
owned banks, attracting some strong foreign banks as 
strategic investors.  Foreign investors drawn to the 
Bulgarian banking industry, include UniCredito Italiano 
SpA (UCI), BNP PARIBAS, National Bank of Greece, 
Societe Generale, Bank Austria Creditanstalt, and 
Citibank. 
 
Because of Bulgaria's future EU membership and EU 
policy of attaining a high degree of geographic 
integration, smaller commercial banks owned by local 
companies have been searching for opportunities to 
establish partnership with larger European banks.  Once 
Bulgaria joins the EU the concept of the "single 
passport" will allow any financial institution which is 
duly authorized and supervised in its Member State of 
origin to do business throughout the EU. 
 
 
Reflecting expanded lending, the average capital 
adequacy ratio (capital base to risk-weighted credit 
exposures) for the banking system moved closer to 
Bulgarian National Bank's requirement of 12 percent. 
The capital adequacy ratio stood at 17 percent in the 
first half of 2005 and is likely to stay at this level 
given the BNB's measures to retain the credit growth 
rate.  The growth rate in non-government sector credit 
slowed to 32.5 percent in the period between January- 
November 2005. 
 
Government Securities 
--------------------- 
 
The government finances expenditures by accessing 
capital markets.  On a weekly basis, the Ministry of 
Finance holds an auction of Treasury bills.  The bills 
are typically short-term (3-month, 6-month and 1-year 
maturities).  Commercial banks are the primary 
purchasers of these instruments.  Foreign banks can 
participate in the treasury market only through a 
Bulgarian bank or the branch of a foreign bank, which 
is licensed in Bulgaria.  The foreign bank transfers 
the money, which is then converted into leva to make 
the purchase, which must be registered with the 
Ministry of Finance.  The foreign bank must open a lev 
account (a "custody account") for transactions.  This 
lev account cannot be used as a standard deposit bank 
account.  A foreign currency account can be opened, but 
it is not obligatory. 
 
The Investment Promotion Act defines securities, 
including treasury bills, with maturities over 6 months 
as investments.  Repatriation of profits is possible 
after presenting documentation that taxes have been 
paid. 
 
¶J.  POLITICAL VIOLENCE 
 
There have been no incidents in recent years involving 
politically motivated damage to projects or 
installations.  Rather, violence in Bulgaria is 
primarily criminally motivated. 
 
¶K.  CORRUPTION 
 
Corruption is still perceived to be one of the gravest 
problems in Bulgaria's investment climate, despite the 
Bulgarian government's numerous advances in laws and 
legal instruments. Bulgaria ranks 55th among 159 states 
included in Transparency International's (TI) 
Corruption Perception Index for 2005. 
 
The government has taken some initial steps to root out 
corruption in certain agencies, like customs. In 
December the Interior Ministry dismantled a ring of 
customs agents and civil agents, who were falsifying 
documents for the illegal import of Chinese goods. 
In reality, however, the established human trafficking, 
narcotics, and contraband smuggling channels that 
contribute to corruption in Bulgaria have yet to be 
broken, and serious efforts and political will are 
still needed to carry out much-needed reforms to 
address inefficiencies in the judicial system.  The 
Bulgarian public generally holds the police, the 
judiciary, customs officials, and political parties in 
low regard due to their perceived corruption. 
 
Bribery is a criminal act under Bulgarian law for both 
the giver and the receiver.  Penalties range from one 
to fifteen years' imprisonment, depending on the 
circumstances of the case, with confiscation of 
property added in more serious cases.  In very grave 
cases, the Penal Code specifies prison terms of 10 to 
30 years.  The 1996 Money Laundering Law also applies 
to bribes.  Bribing a foreign official is a criminal 
act.  There have been trials and convictions of 
enterprise managers, prosecutors, and law enforcement 
officials for corruption.  While Bulgarian tax 
legislation does not explicitly prohibit the deduction 
of bribes in the computation of domestic taxes, 
deductions connected with bribery and other illegal 
activities are not allowed under the tax code. 
 
Bulgaria has a 1996 Law for Measures against Money 
Laundering and in 1998 was one of the first non-OECD 
nations to ratify the OECD Anti-Bribery Convention. 
Bulgaria has also ratified the Convention on 
Laundering, Search, Seizure, and Confiscation of 
Proceeds of Crime and the Civil Convention on 
Corruption. 
 
The GOB's recent anti-corruption agenda included the 
adoption of key international anti-corruption 
instruments, including: 
-- signing the UN Convention against Corruption; 
-- withdrawing the reservations made in 2001 at the 
ratification of the Criminal Law Convention on 
Corruption; 
-- ratifying and signing the Additional Protocol to the 
Council of Europe's Criminal Law Convention on 
Corruption; Bulgaria was the second state to ratify 
this Additional Protocol. 
 
Although the Bulgarian government has achieved some 
successes in the fight against organized crime and 
corruption, many observers believe that corruption and 
political influence in business decision-making 
continue to be significant problems in Bulgaria's 
investment climate. 
 
¶L.  BILATERAL INVESTMENT AGREEMENTS 
 
As of December 2005, Bulgaria has foreign investment 
promotion and protection treaties or agreements with 
Albania, Algeria, Argentina, Armenia, Austria, Belarus, 
Belgium-Luxembourg, China, Croatia, Cuba, Cyprus, Czech 
Republic, Denmark, Egypt, Finland, France, Georgia, 
Germany, Greece, Great Britain and Northern Ireland, 
Hungary, India, Indonesia, Iran, Israel, Italy, Jordan, 
Kazakhstan, Kuwait, Latvia, Lebanon, Libya, Macedonia, 
Malta, Moldova, Mongolia, Morocco, Netherlands, Poland, 
Portugal, Romania, Russia, Singapore, Slovakia, 
Slovenia, Spain, Sweden, Switzerland, Syria, Thailand, 
Tunisia, Turkey, Ukraine, the United States, 
Uzbekistan, Vietnam, Yemen, and Yugoslavia. 
 
Bulgaria has a Bilateral Investment Treaty (BIT) with 
the United States, which guarantees national treatment 
for U.S. investments and creates a dispute settlement 
process.  The BIT also includes a side letter on 
protections for intellectual property rights.  The 
Governments of Bulgaria and the United States exchanged 
notes in 2003 to make Bulgaria's obligations under the 
BIT compatible with its EU obligations. 
 
¶M.  OPIC AND OTHER INVESTMENT INSURANCE 
 
In 1991, the Overseas Private Investment Corporation 
(OPIC) (www.opic.gov) and the GOB signed an Investment 
Incentive Agreement, which governs OPIC's operations in 
Bulgaria.  OPIC provides project financing to U.S. 
investors making long-term investments in emerging 
markets.  OPIC also supports a number of privately 
owned and managed private equity funds, including a 
regional fund for Southeast Europe created as part of 
the U.S. Southeast Europe Initiative. 
 
OPIC provides project financing through direct loans 
and loan guarantees that provide medium- to long-term 
financing to ventures involving significant equity 
and/or management participation by U.S. businesses. 
OPIC offers American investors insurance against 
currency inconvertibility, expropriation, and political 
violence.  Political risk insurance is also available 
from the Multilateral Investment Guarantee Agency 
(MIGA), which is a World Bank affiliate, as well as 
from a number of private U.S. companies. 
 
¶N.  LABOR 
 
Bulgaria's workforce officially consists of 3,411,000 
(53 percent male and 47 percent female.  The literacy 
rate in Bulgaria is 93 percent.  A high percentage of 
the workforce has completed some form of secondary, 
technical, or vocational education.  Many Bulgarians 
have strong backgrounds in engineering, medicine, 
economics, and the sciences, but there is a shortage of 
professionals with Western management skills.  The 
aptitude of workers and the relative low cost of labor 
are considerable incentives for foreign companies, 
especially those that are labor intensive, to invest in 
Bulgaria.  Employer tax obligations and benefits 
(clothing allowance, bonuses, etc.) can add more than 
50 percent to the nominal wage. 
 
Bulgaria's Constitution recognizes workers' right to 
join trade unions and organize. The National Tripartite 
Cooperation Council (NTCC) provides a forum for 
dialogue among government, management, and trade 
unions, such as cost-of-living adjustments.  The 
current government has substantially revitalized the 
Council. 
 
Bulgaria has two large legitimate representative trade 
union confederations, the Confederation of Independent 
Trade Unions of Bulgaria (CITUB) and Podkrepa 
("Support").  The 2004 trade union membership census 
indicates that CITUB has about 400,000 members and 
Podkrepa has about 110,000 members.  CITUB, the 
successor to the trade union integrated with the 
Communist Party, has long since severed its ties to the 
socialists, whereas Podkrepa is an independent 
confederation.  There are few restrictions on trade 
union activity and the confederations operate freely, 
but the workforce in smaller firms and elsewhere in the 
emerging private sector is often not represented by 
trade unions.  In 2004, the Bulgarian government 
recognized Promyana to be Bulgaria's third legitimate 
representative trade union. 
 
Under the Labor Code, employer and employee relations 
are regulated by employment contracts, which may be 
agreed upon through collective bargaining.  The Code 
addresses worker occupational safety and health issues, 
establishes a minimum wage (determined by the Council 
of Ministers), and prevents exploitation of workers, 
including child labor.  The Code clearly delineates 
employer rights, strengthening management's hand in 
disciplining the workforce.  Disputes between labor and 
management can be referred to the courts, but 
resolution is often subject to delays. 
 
Over the last couple of years, the Labor Code has been 
amended to address labor market rigidities and bring 
labor legislation into compliance with the EU social 
policy and employment requirements.  The amendments to 
the Labor Code simplify additional work procedures, 
restrict mandatory leaves, and relax procedures for 
implementing collective redundancies.  However, 
collective labor contracts at the sectoral or branch 
level remain binding for all enterprises of the sector 
or branch.  The minimum annual paid leave is 20 days. 
 
Neither foreign companies, nor Bulgarian companies 
having majority foreign-control, are exempt from the 
requirements of the Labor Code.  During 2002-2003, the 
Ministry of Labor formed the new "National Institute 
for Conciliation and Arbitration" (NICA), which 
developed a framework for collective labor dispute 
mediation and arbitration.  NICA includes 
representatives from labor, employers, and the 
Government, as does the roster of mediators and 
arbitrators.  Although NICA-sponsored collective labor 
dispute resolution has not yet started, a number of the 
appointed mediators received basic mediation skills 
training from the U.S. Federal Mediation and 
Conciliation Service. 
 
¶O. FOREIGN TRADE ZONES/FREE TRADE ZONES 
 
The 1999 Customs Act renamed the six duty-free zones 
"free zones."  Foreign, including U.S., individuals and 
corporations, and Bulgarian companies with 1.0 percent 
or more foreign ownership may set up operations in a 
free zone.  Thus, foreign-owned firms have equal or 
better investment opportunities in the zones compared 
to Bulgarian firms. 
 
There are at present six operational "free zones" in 
Bulgaria:  Ruse and Vidin ports on the Danube; Plovdiv; 
Svilengrad (near the Turkish border); Dragoman (near 
the Yugoslav border); and, Burgas port on the Black 
Sea.  They are all owned by joint stock or state-owned 
companies.  The government provided land and 
infrastructure for each zone. 
-- Plovdiv, the only inland free zone, is the most 
profitable, with 24 investment projects. 
-- The Burgas FTZ has the largest warehousing and 
automotive distribution facilities in Bulgaria and is 
used by more than 100 foreign and joint venture 
companies including Samsung. 
-- Limited manufacturing is conducted in both the 
Plovdiv and Ruse FTZs. 
 
All forms of production and trade activities and 
services may take place in the free zones.  Foreign 
goods delivered to the free zones for production, 
storage, processing, or re-export are VAT and duty 
exempt.  Bulgarian goods may also be stored in free 
zones with permission from the customs authorities. 
Convertible foreign currency may be used and revenues 
can be transferred abroad freely without any 
restrictions.  Administrative procedures relieve the 
investor from needing to contact local authorities 
 
directly.  Production and labor costs are low, with 
well-trained and highly qualified labor available.  All 
the zones are located on strategic trade rail, road, 
and/or water trade routes. 
 
The free trade zones in Bulgaria have attracted a 
number of foreign investors, including Hyundai, KIA 
Motors, Schwartskopf, Henkel, Landmark Chemicals Ltd., 
Group Schneider, and BINDL Energic Systeme GmbH. 
 
¶P.  FOREIGN DIRECT INVESTMENT 
 
Between 1992 and September 2005, total cumulative 
foreign direct investment (FDI) into Bulgaria amounted 
to approximately USD 11.831 billion (about 45 percent 
of estimated 2005 GDP).  The Bulgaria Investment Agency 
(BIA) estimates FDI of USD 2.6 billion for 2005. 
Bulgaria's direct investment abroad was USD 298 million 
in 2005, a tenfold increase relative to 2004. 
 
FDI by Year (millions of U.S. dollars) 
 
1992        34.4 
1993       102.4 
1994       210.9 
1995       162.6 
1996       256.4 
1997       636.2 
1998       620.0 
1999       818.8 
2000     1,001.5 
2001       812.9 
2002       904.7 
2003     2,096.9 
2004     2,487.5 
2005     1,685.4* 
Total   11,830.6 
 
*January through September 2005; 
(Source:  InvestBulgaria Agency) 
 
FDI by Country of Origin 1992- Sept 2005 
(millions of USD) 
 
Austria          2,210.9 
Greece           1,187.6 
Germany            943.0 
Italy              779.9 
Netherlands        771.7 
Cyprus             603.3 
USA 1)             586.0 
Switzerland        571.0 
Hungary            535.0 
U.K.               532.8 
Belgium            520.6 
Czech Republic     441.3 
France             228.3 
Russia             211.6 
Turkey             159.8 
Spain              155.9 
Ireland            116.8 
Denmark             92.5 
Sweden              78.4 
Israel              51.3 
Canada              50.1 
Liechtenstein       46.5 
Japan               43.1 
Slovenia            39.5 
Malta               28.0 
Panama              24.0 
Lebanon             19.4 
Lithuania           19.1 
Romania              9.4 
China                7.8 
Slovakia             6.7 
Korea                3.5 
(Source:  InvestBulgaria Agency) 
 
1) Official GOB investment statistics rank the U.S. as 
7th in terms of overall investment in Bulgaria for the 
period 1992-Sept 2005.  This data, however, is 
misleading as many US investors establish European 
subsidiaries to manage their investments in Bulgaria. 
For example, in 2005 Austria ranked as the largest 
investor country largely due to Delaware-based Advent 
International using its Austrian Viva Ventures 
subsidiary to buy 65% of former state-owned 
telecommunications company BTC.  Also, there are two 
major investments in Bulgaria by US-based agricultural 
firms for oil, sweeteners and starches and sunflower 
oil crushing operations valued at $50-60 million, which 
are described as Belgian and Swiss investments. 
 
Other investment projects negotiated in 2005 involving 
US companies not included in the above figures include: 
-- AES, energy, USD 1.4 billion; 
-- GE Capital, real estate, USD 48 million; 
-- Tishman International, real estate, USD 84 million; 
and 
-- lmark Group Industries, electrical equipment, USD 2 
million. 
 
FDI by Sector 1992-Sept. 2005 (millions of USD) 
 
Finance                                     2,168.9 
Trade                                       1,580.8 
Telecommunications                          1,116.9 
Electricity, Gas and Water                  1,078.5 
Real Estate                                   709.4 
Petroleum, chemical                           654.1 
Mineral products                              489.4 
Construction                                  317.7 
Food Products                                 293.9 
Textile&Clothing                              253.0 
Wood products, paper                          190.0 
Tourism                                       185.4 
Machine building                              178.1 
Metallurgy and metal products                 166.3 
Transport                                     123.2 
Electrical engineering, electronics           122.6 
Mining                                         70.1 
Agriculture                                    38.2 
Leather and leather products                   22.3 
Publishing                                     12.2 
Vehicles and other transport equipment          9.8 
(Source: InvestBulgaria Agency) 
 
U.S. Investment in Bulgaria Greater Than USD 1,000,000 
(Investor, Sector, Bulgarian Firm, millions USD) 
 
-- Advent International (through Viva Ventures 
Austria), telecommunications, BTC, 342.5 
-- American Standard, manufacturing, Ideal Standard, 
Vidima AD, 217.7 
-- Alico/CEN, banking, Bulgarian Post Bank, 111.2 
-- Bulgarian American Enterprise Fund, finance; real 
estate, Bulgarian American Credit Bank; Bulgarian- 
American Property Management; Obzor development 
Company, 104.9 
-- Coca Cola (through Softbul Investments, Cyprus), 
beverages, Coca Cola Hellenic Bottling, 42.5 
-- Entergy Power Group, electric power, Maritsa East 
III, 36.3 
-- Kraft Foods International, food industry, Kraft 
Foods Bulgaria, 35.9 
-- Socotab, tobacco processing, Socotab Bulgaria, 27.3 
-- Soros Funds, cable TV/banking, Eurocom 
Cable/Procredit Bank, 25.2 
-- McDonald's, food industry, McDonald's Bulgaria, 23.2 
-- News Inc., television, bTV, 22.8 
-- Rila Holding, software 
development/trade/education/real estate, Rila 
Solutions/AUBG, Mirad, Slasa, Nord, 10 
-- Eurotech, wood processing; business services, 
Pirinska Moura; Ameta Holding, 9.7 
-- Small Enterprise Assistance Fund (SEAF), finance; 
plastics manufacturing, TransBalkan Bulgaria Fund, 
Kapitan Dyado Nikola, 8.8 
-- Marsdale Int'l LLC, lubricants, Prista Oil, 7.5 
-- Motorola, electronics, Motorola Bulgaria, 7.0 
-- Michigan Magnetics Inc., electronics, Magnetic Head 
Technologies, 6.1 
-- Premium Asset Management, business services/trade, 
Stroy Consult/Ecomarket, 5.4 
-- DTS, trade, Superabraziv, 5.3 
-- Interinvestments Corp., trade, Buhal, 5 
-- Osteotech, healthcare, OsteoCentre Bulgaria, 3 
-- IBM World Trade Corp., trade, IBM Bulgarian, 2.8 
-- Jovanda International Ltd. Delaware, hotel industry, 
Duni Hotel, 2.7 
-- Microsoft, IT, Microsoft Bulgaria, 2.5 
-- AIG Group Inc, insurance, AIG Bulgaria, 2.5 
-- Dunkin Donuts, food industry, Samex, 1.7 
-- Croyden Chemical, trade/construction, Terachim 
97/NIKMI, 2.9 
-- American Life Insurance, insurance, AIG Life 
Bulgaria, 1.3 
-- Arus, chemical industry, Sviloza, 1.2 
-- Daval Holding, advertising, Polytrade, 1.1 
-- AMI Semiconductor, R&D electronics, AMI 
Semiconductor Bulgaria, 1 
(Source: InvestBulgaria Agency) 
 
Top five 2005 Foreign Direct Investments (Investor, 
Country, Sector, Bulgarian Firm, USD millions) 
 
-- Telekom Austria, Austria, telecom, Mobiltel, 1,888; 
-- Lukoil, Russia, petrochemicals, Neftochim Burgas, 
242; 
-- Sisecam, Turkey, glass, Trakya Glass Bulgaria, 220 
-- E.ON, Germany, electricity distribution, Northeast 
electricity distribution, 218; 
-- Montupet, France, Autoparts, Greenfield, 94.4; 
 (Source:  InvestBulgaria Agency) 
BEYRLE