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Viewing cable 08SOFIA378, APPLICATION FOR OPIC FINANCE: CREDIA-DIRECT

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Reference ID Created Released Classification Origin
08SOFIA378 2008-06-09 14:54 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Sofia
VZCZCXYZ0009
OO RUEHWEB

DE RUEHSF #0378 1611454
ZNR UUUUU ZZH
O 091454Z JUN 08
FM AMEMBASSY SOFIA
TO SECSTATE WASHDC IMMEDIATE 5126
UNCLAS SOFIA 000378 
 
SENSITIVE 
SIPDIS 
 
STATE PLEASE PASS TO OPIC - DEBRA ERB 
STATE ALSO FOR EUR/NCE VALDA VIKMANIS-KELLER 
 
E.O. 12958: N/A 
TAGS: EINV EFN BU
SUBJECT: APPLICATION FOR OPIC FINANCE:  CREDIA-DIRECT 
BULGARIA PROJECT 
 
REF: STATE 57225 
 
1. (SBU)  Per reftel, Post has no derogatory information on 
Credia Direct Bulgaria, CreditLand, Moite Pari, FinZoom or on 
the principal investor and senior manager Deyan Stoikov 
Vasilev (or Vassilev).  Our Economic Specialist knows Mr. 
Vassilev from their days at the American University in 
Bulgaria (AUBG), where Mr. Vassilev ran the student 
government.  According to our Economic Specialist, Mr. 
Vassilev was a decent and entrepreneurial person who made a 
good start with the Moite Pari (my money in Bulgarian), 
advising all types of financial lending.  He was a pioneer in 
that Motie Pari was ahead of many other specialized financial 
sites in Bulgaria. 
 
2.  (SBU)  Sound economic performance (over the last several 
years averaging five percent) political stability, and EU 
membership have enhanced Bulgaria's ability to attract 
respected international investors.  However, with 45 percent 
of investment in 2007 in construction and real estate -- two 
non-productive, non-export sectors -- there is some question 
about the quality/efficiency of the new investment stock. 
Lending for real estate is risky at present given Bulgaria's 
high inflation and growing current-account deficit (over 20 
percent of GDP in 2007).  Problems that American investors 
encounter in Bulgaria include:  corruption, sluggish 
government bureaucracy; poor infrastructure; frequent changes 
in the legal framework; low domestic purchasing power; and 
protracted privatization processes.  A weak judicial system 
limits investor confidence in the courts' ability to enforce 
ownership and shareholders rights, contracts, and 
intellectual property rights.  The Bulgarian National Bank 
(BNB) website's English language edition lists Bulgaria's 
entire legal framework that includes laws relevant to OPIC's 
interests.  The website is http://www.bnb.bg and has a link 
to its English language version. 
 
Beyrle