The Big Job Interview Amcham Bulgaria Conducts Internship Programs Survey

issue 93 october 2008

Analysis: Bulgaria and the Financial Crisis - Special Report by ISI and an Article from Institute of Market Economy News: Ratification of the U.S. - Bulgaria Treaty on Avoidance of Double Taxation Events: Public Affairs Committee Initiates Discussion on IPR Issues Six New Members of AmCham Join the Community The Big Job Interview AmCham Bulgaria Conducts Internship Programs Survey

American Chamber of Commerce in Bulgaria

Business Park Sofia, Mladost 4 Area, Building 2, Floor 6, 1766 Sofia Tel.: (359 2) 9742 743 Fax: (359 2) 9742 741 homepage: www.amcham.bg e-mail: [email protected]

editorial

Dear Members and Friends,

With less than two weeks left until Election Day it is obvious that the financial crisis that has engulfed the banking system has led to a dramatic economic backdrop to the United States presidential elections.

Both candidates Barack Obama and John McCain welcomed the $ 700 billion rescue package which in itself went through frantic biparti- san talks at the White House and a dramatic vote in the Congress. The bailout was substantially improved in the negotiations by imposing better protections for the public interest but despite how good the plan is it does not seem to calm the markets. Meanwhile in an effort to address the credit crisis on the other side of the Atlantic the European finance ministers have agreed to raise the minimum guarantee of bank deposits to 50,000 euros across all EU member states and to work together on a package of other measures to limit the negative impact of the financial tensions in their economies. That has not yet produced the needed stability in the markets either.

Thus as the financial crises unfolded over the past month the economic issue has shot the political agenda of both candidates. That has become apparent even in the first presidential debate which was supposed to be about foreign policy, but much of it focused on the economy.

So as it is too early for the financial rescue package to restore confidence, the economic issue is becoming of paramount importance for the American voters and it makes them aware that whoever would elected president must be capable of handling the crisis with leadership and authority. AmCham Bulgaria Magazine July2008 Bulgaria MagazineAmCham

Best regards, Valentin Georgiev

Executive Director page 1 contents

issue 93 october 2008

AmCham Bulgaria Magazine is a primary forum for political and economic analyses, news, viewpoints as well as for the presentation of new business opportunities. The articles in the AmCham Bulgaria Magazine express the opinions of the authors and do not necessarily reflect the position of the American Chamber of Commerce in Bulgaria.

Publisher Writers: American Chamber of Commerce in Bulgaria Boyko Vassilev, Marina Tzvetkova, Business Park Sofia, Mladost 4 Area Mina Georgieva, Panayot Angarev, Building 2, Floor 6, Sofia 1766, Bulgaria Yuliana Boncheva Tel.: +359 (2) 9742 743 Fax: +359 (2) 9742 741 Advertising e-mail: [email protected] AmCham Bulgaria: www.amcham.bg Nadejda Vakareeva, [email protected] AmCham Bulgaria Magazine: Editor-in-Chief Milen Marchev, [email protected] Milen Marchev

Deputy Editor-in-Chief: The AmCham Bulgaria Magazine reaches a broad audience Christopher Karadjov of AmCham members, leading US, Bulgarian and international companies, US and Bulgarian decision-makers, all Senior Editor: AmChams around the world. Irina Bacheva Subscription is free of charge. If you would like to subscribe to AmCham Bulgaria publications, please contact the ISSN 1312-935X AmCham Bulgaria office.

2 AmCham Magazine Bulgaria 2008 July amcham bulgaria

Board of Directors of the American Chamber of Commerce in Bulgaria President Mr. Borislav Boyanov Borislav Boyanov & Co. Vice President Mr. Anthony Hassiotis Bulgarian PostBank Vice President Mr. Kenneth M. Lefkowitz New Europe Corporate Advisory Contents Treasurer Tanya Kosseva-Boshova Landmark Property Bulgaria cover story AmCham Bulgaria Conducts Members Mr. George Georgiev Motorola Bulgaria Internship Programs Survey...... 4 Mr. Thomas Higgins Balkan Accession Fund By Irina Bacheva, Sevdalina Voynova Mr. Andon Ichev General Electric Mr. Stefan Ivanov Citibank N.A. Bulgarian Market Demands Mr. Bernard Moscheni BTC More Middle Management...... 5 Ms. Dana Leff AbCRO Bulgaria By Silvia Umnikova, Consultant, Alexander Hughes Bulgaria Mr. Chris Thompson Consultant Microsoft Relies on Internships Ms. Elitsa Tsaneva Ideal Standard Bulgaria to Find Its Pearl Leader...... 6 Ex-Officio Member Mr. Scott Pozil US Senior Commercial Attache By Diana Stoeva, HR Manager Bulgaria, Macedonia, Cyprus, Executive Director Valentin Georgiev Malta and Albania, Microsoft

Businesses Lack Flexible System 3M (East) AG . AA KRES EOOD . ABB Bulgaria EOOD . Abbott Laboratories S.A. . AbCRO - Bulgaria . for Employment of Interns...... 7 Accor Services Bulgaria . ACO Building Elements Ltd. . ACSIOR Ltd. . ADIS Ltd. . Advance International Transport (Balkan) EAD . AES Corporation . AFA OOD . AIG Bulgaria Insurance & Reinsurance Company By Emil Georgiev, Human Resources Director, Postbank EAD . AIG Life Bulgaria . AIMS Human Capital . Alcoa Packaging Bulgaria . Alexander Hughes Bulgaria OOD . ALEXANDROV GROUP CORPORATION . Alfred C.Toepfer International . Alliance One Tobacco 300 Students Joined UniCredit Team Bulgaria . Allied Pickfords Bulgaria . Alter Ego Company OOD . American College of Sofia . American After Successful Intern Programme in 2008...... 8 English Academy . American Resarch Center in Sofia . American University in Bulgaria (AUBG) . Anglo- American School of Sofia . Anton Preslavski, Liebert Hiross . APIS - BULGARIA Ltd. . APOLO Ltd. . Aries Commerce . Ashtrom International Ltd. . Association Integra-BDS . Astra Zeneca UK Ltd. . Astral Holidays Perfecting of Social Skills is AD . AT Engineering 2000 Ltd. . Auditing Company Versi and Partners Ltd. . AVON Cosmetics Bulgaria Ltd. Essential in Work...... 9 . BAE Systems International Ltd. . Balkan Accession Fund . Balkan News Corporation Plc. . Balkan Star Automotive EOOD . Baxter AG . Bayer Bulgaria EOOD . BC Serdon . Berlitz Schools of Languages . The Challenge is to Solve a Problem BG Radio . BMG Ltd. . Bodyguard-Fire-K Ltd. . Borislav Boyanov & Co. . Braykov's Legal Office . British American Tobacco . Brown Forman Beverages Worldwide Sofia Branch LLC . Bulgaria Platinum Group When Taking Every Aspect of It...... 9 EAD . Bulgarian American Enterprise Fund . Bulgarian Charities Aid Foundation (BCAF) . Bulgarian Land Development EAD . Bulgarian Telecommunications Company AD . Bulgarian VIP Travel . Business Media “If You Listen Very Hard, Group . Business Park Sofia EOOD . CallPoint New Europe AD . Candole Partners EOOD . Car Rental the Tune Will Come to You at Last”...... 10 Bulgaria Ltd. . Carlsberg Bulgaria AD . Cefin Bulgaria EOOD (IVECO dealer) . Center for the Study of Democracy . CENTURY 21 Bulgaria . Chelopech Mining EAD . Chris Thompson, Independent Consultant . Cisco Systems Bulgaria . Citibank N.A.- Sofia Branch . City University of Seattle . Cleves EOOD . news CMS Cameron McKenna EOOD . Coca-Cola HBC Bulgaria AD . Coface Bulgaria Credit Management Services Ratification of the U.S. - Bulgaria Treaty EOOD . Colgate-Palmolive Adria . COLLIERS International . ConsulTeam Recruitment and Selection Ltd. . Cook Communications . Corstjens Worlwide Movers Group . CPM Consultancy Sllc . Curtis / Balkan Ltd. on Avoidance of Double Taxation...... 12 . D&IC (Dun and Bradstreet Representative) . DeConi International . Deloitte Bulgaria OOD . DENIMAR Ltd. . Devin AD . DHL Express Bulgaria Ltd. . Diageo Bulgaria Ltd . Diamed Ltd. . Dimitrov, Petrov analysis & Co. . Djingov, Gouginski, Kyutchukov, & Velichkov . DLA Piper Weiss-Tessbach Branch Sofia . Dobrev, Bulgaria and the Crisis...... 14 Kinkin & Lyutskanov Law Firm . Domaine Boyar International AD . Dr. Emil Benatov & Partners . Dr. I.S. Greenberg Medical Center, Ellen Ruth Greenberg, Ph.D. . DuPont de Nemours International S.A. . DynCorp By Dimiter Chobanov International LLC . Economedia AD . Effekten Und Finanz - Sofia AD . Ekotoi - Service Ltd. . Electron Progress EAD . Eli Lilly and Company . Elido (Lamel Ltd.) . Elmec Sport Bulgaria EOOD . Elta consult Global Financial Crisis Poses Serious Risks to AD associated partner of CB Richard Ellis for Bulgaria . Emerson Process Management AG . Emporiki Bank Bulgaria’s Economy...... 18 Bulgaria EAD . Encouragement Bank AD . Enel Maritza East 3 AD . Enemona SA . Engineeringservice Sofia Ltd. . Environmental Quality Management, Inc. . Epsilon Interactive International . Equest EAD . ERATO HOLDING Plc . Ernst & Young Bulgaria . European Bank for Reconstruction and Development (EBRD) interview . Faustina Group Ltd. . Flying Cargo Bulgaria Ltd. - Licensee of FedEx . Force Delta Ltd. . Forem Consulting Everyone Is Special At Bulgaria . Fortel Engineering LTD. . Forton International JSCo . Foster Wheeler Energia Polska, Branch Office Bulgaria . Foundation for Local Government Reform . G4S Security Services Bulgaria JSC . General United Medical Group...... 20 Electric International . General Security ltd. . Genmark Automation Bulgaria Plc. . GlaxoSmithKline . Global Benefits Group GBGI CEE LLC Representrative Office . Goodyear Dunlop Tires Romania . Grand Hotel economy Sofia . Grenville Bulgaria . Grey Worldwide Bulgaria EOOD . HelmsBriscoe . Hewlett-Packard Bulgaria Budget 2009: Pre-Election Spending Ltd. . Hild Group . Hilton Sofia . Holiday Inn Sofia . Honeywell EOOD . Hotel Yastrebets Wellness & SPA . IBM Bulgaria . IBS Bulgaria Ltd. . Ideal Standard Bulgaria . Immo Industry Bulgaria . In Without Purpose...... 22 Time Ltd. . Industrial Holding Bulgaria . ING Bank Sofia Branch . Interbrands Marketing & Distribution Inc. By Mina Georgieva OOD . Interdean . International University College . Investbank Plc. . IP Consulting Ltd. . ISI Emerging Markets (Internet Securities, Inc.) . Johnson & Johnson Doo. . Johnson Controls Electronics Bulgaria . Junior analysis Achievement Bulgaria . Kaliakra AD . Kamenitza AD . Kamor Auto EOOD . Katilin Popov Enforcement Officers . Kempinski Hotel Grand Arena Bansko . Kimimpex Trade and Leasing Ltd. (2be) . Kolbis

Independence Day Dreaming...... 28 International Transfer Corporation . KPMG Bulgaria . Kraft Foods Bulgaria . LANDMARK Property Bulgaria July2008 Bulgaria MagazineAmCham By Boyko Vassilev . Lexim Sofia Ltd. . Lindner Immobilien Management EOOD . Lirex BG Ltd. . Lowe Swing Communications . M & M Air Cargo Service Bulgaria Ltd. . M3 Communications Group, Inc. A Hill & Knowlton Associate . Magnetic Head Technologies . Maria Vranovska, MD, MBA . Marsh EOOD . MARTERN EOOD . amcham events Mathnasium (Rossimat Ltd.) . MBL Ltd. . McDonald's Bulgaria Ltd. . Mellon Bulgaria EAD . Merck Sharp Public Affairs Committee Initiates & Dohme Bulgaria . Mercurius-Sofia . Microsoft Bulgaria . Miltech Ltd. . Mmd, Corporate, Public Affairs Discussion on IPR Issues...... 32 & Public Relations Consultants . Mobiltel EAD . Monbat Plc. . Moody International Ltd. . Moten Sport . Moto-Pfohe Ltd. . Motorola Bulgaria EAD . National DISTRIBUTORS . NATO Defense College Anciens' Association . NDT Equipment Supplies Ltd. . Neochimiki Bulgaria S.A. . Neterra Communications . Six New Members of AmCham Neumann International AG . New Europe Corporate Advisory . New Europe Directories Bulgaria . Nexcom Join the Community...... 34 Bulgaria EAD . On Bulgaria Ltd. . Opet/Aygaz Bulgaria EAD . Oracle East Central Europe Limited - Branch Bulgaria . Orbit Ltd. . Orkikem Ltd. . OSG Records Management . Outsource Partners International . member news Ozone Laboratories Bulgaria . PANDA - IP Ltd. . Pedersen & Partners . Penev & Partners Law Offices . Penkov, Markov & Partners OOD . Pfizer Luxembourg SARL, Representation Office Bulgaria . Philip Morris Thousands March To Raise Bulgaria EOOD . Pioneer Semena Bulgaria EOOD . Piraeus Bank Bulgaria AD . Plesio Computers Jsc . page Breast Cancer Awareness...... 36 Popov Legal Office . Postbank (Eurobank EFG Bulgaria AD) . PostPath . Praktiker EOOD . Pratt & 3 Whitney . PricewaterhouseCoopers . Procter & Gamble Bulgaria . ProSoft . PSG Payroll Services Ltd. . Radisson SAS Grand Hotel . Reader's Digest EOOD . Regus Bulgaria Ltd. . Renault Nissan Bulgaria Postbank To Award 108 Outstanding SRL . Rising Force Co., Ltd. . Rockwell/Intelpack . S&T Bulgaria . Sanofi - Aventis Bulgaria EOOD . Students With 54,000 Leva In Prizes...... 36 Scandinavia Motors Ltd. . Schenker EOOD . Schering - Plough Central East - Bulgaria . SEAF Management Bulgaria EOOD . Sheraton Sofia Hotel Balkan . Sherita M Ltd. . Siemens EOOD . Sienit Ltd. . Searching for Leaders...... 38 SigmaBleyzer Investment Group LLC - Representative Office . SKE Bulgaria EOOD . Sofstroy AD . Soravia Bulgaria Ltd. . Stanton Chase International Bulgaria . Stefan Dimitrov, Norman Realestate Co. Ltd. . Symix new members...... 40 Bulgaria OOD . TechnoLogica EOOD . TeleLink EAD . The Coca-Cola Company Bulgaria . Tishman Management Company Ltd. . Tissue Bank Osteocenter Bulgaria EAD . TMF . Totema Engineering . HelmsBriscoe Trans Company Ltd. . TravelStoreMaker.com . Tumbleweed ® Communications Corporation EOOD . UniCredit Bulbank . Unimasters Logistics Plc . Unique Estates . Unisys Bulgaria Branch . United Bulgarian Bank Pedersen & Partners . United Consulting Ltd. . United Healthcare Bulgaria Group of Companies . United Medical Communications . Vaptsarov Holding AD . Vector Management Bulgaria EOOD . Videolux Holding / Technopolis . VIP Winslow Developments Security Ltd. . VISA Europe . VM Finance Group . VSK Kentavar Ltd. . Welcome to Bulgaria . Westinghouse Energy Systems Bulgaria Branch . Winslow Developments . World Courier Bulgaria . WorleyParsons Europe Energy Services Ltd. . Wrigley Bulgaria EOOD . Xerox Bulgaria Ltd. . Yavlena EOOD . Zlati Dinev Studio in partnership with Outerbridge/Morgan . cover story

Survey participants: AbCRO, Inc. Alexander Hughes Bulgaria Balkan Star Automotive Ltd CEED Bulgaria Carlsberg Bulgaria AD Citibank N.A. – Sofia branch Deloitte Bulgaria OOD Devin JSC DLA Piper Weiss-Tessbach Branch Sofia Ernst&Young Bulgaria EOOD Forton International JSC Enemona SA IBM Bulgaria IBS Bulgaria Ltd. ING Bank N.V. – Sofia Branch Microsoft Bulgaria Mmd Corporate, Public Affairs & Public Relations Consultants Mobiltel EAD Johnson Controls Electronics Bulgaria Piraeus Bank Bulgaria SA Postbank Radisson SAS Grand Hotel, Renault Nissan Bulgaria UniCredit Bulbank WorleyParsons EES AmCham Bulgaria Magazine is open to any further com- ments and materials on the subject. AmCham Bulgaria Conducts Internship Programs Survey By Irina Bacheva, Sevdalina Voynova

The question “How did you find your employee?” is more Regardless of their varying backgrounds, these companies common today than the opposite “How did you get the job?” seek to attract students and recent graduates to their intern- This speaks volumes about the efforts of company managers ship programs. Such programs take the form of head-hunting to attract personnel and keep it for several years. There are strategies, where the companies seek motivated and knowl- many known ways to get a job depending on the position, edgeable individuals to be employed after graduation before educational background and on how you proceed in life in their competitors reach them. Young talent is essential to big general. firms as students are more familiar with a better understanding of current trends, and thus internship programs prove the per- It seems easy today – you find an advertisement in a newspa- fect opportunity to test successful applicants. per and decide to enter into a competition that may be your lucky one, but also rather on the contrary. Sometimes it might To ensure only the best in the industry are selected, compa- 4 be easier for the employee to choose from many opportunities, nies set long recruitment processes with strict criteria and a but is it so simple for the employer to find the right persons? range of tests. Our survey established that the universal Can the temporary staffing in Bulgaria be the remedy for the requirement is good English language, which is seen as com- lack of qualified human resources? pulsory for all companies regardless of the sector; other European languages are seen as a welcoming advantage. AmCham Bulgaria conducted a survey of some 30 members of the AmCham community in order to observe common trends Computer literacy of applicants is essential to most organiza- in internship programs. The member firms came from diversi- tions, as well as relevant personal skills, such as communica- AmCham Magazine Bulgaria October 2008 fied sectors – services and retail to computing and banking. tion skills, motivation and being a team player. This is particu- cover story larly significant for companies in the financial sector, reveals nomic activity in the country. The gender ratio, men to the survey. The background degree study is also important to women, is 1-1.4. On the whole, companies seek to employ some member companies, with most applicants emerging from a 50-50 proportion. economics/business administration/finance/law or computer fields of study. Recent trends and media coverage, however, have forced banks and financial-related firms to put greater emphasis on The most popular internships are in the financial, insurance, selecting women in the workplace to break through the mold and telecommunications sector, although other fields have also of the male-dominated image of the financial industry. Thus in been reported, such as tourism, automobile, energy, pharmacy, summer 2008 more female applicants were accepted in rela- real estate. The results have shown that the internship period tion to their male counterparts in such firms. Internship survey for companies varies from one month to a year, where most at the same time indicated that certain branches, such as commonly applicants are employed for three-four months over automobile, construction and IT, attract predominantly male the summer period. candidates.

From approximately 5,400 internship applicants, 550 were The majority of successful applicants have been of Bulgarian selected in summer 2008, with an average of three quali- origin, although internship advertisement, particularly online, fied candidates per vacancy. The ratio of close to 10 attracted other nationalities, such as Australian, Ukrainian, candidates for one internship vacancy is impressive and Italian, and from other EU member states, reflecting the ever- raises hopes for the occupational supply and overall eco- increasing diversity since Bulgaria joined the EU. n Bulgarian Market Demands More Middle Management Silvia Umnikova, Consultant, Alexander Hughes Bulgaria

What is specific about our company is more inclined to be hired as street ven- that it works on top management level dors or waiters for better pay than to in more than 90 percent of the cases. start working in their field in companies We have much fewer clients who design where interns were not even paid until special programs for the expansion of recently. promising young staff and who are looking for our services to find these indi- Our market here also lacks the under- viduals. For example, last year we had a standing with regard to those young client who was looking for young Bulgarians who have completed Master Bulgarians in the framework of a pro- of Business Administration (MBA) program which was designed for Eastern grams in Bulgaria or abroad, and who Europe and offered two years of training are searching for market opportunities. within the client’s group abroad. After Many of the companies are not pre- the successful completion of this pro- pared to offer interesting programs for gram they would occupy key positions the development of such students in within the group in Western Europe. Bulgaria and also to offer them the Such an exercise helps university grad- according recognition. It is worth giving AmCham Bulgaria Magazine October 2008 October Bulgaria MagazineAmCham uates and young professionals to achieve more thought to this issue, as well as fast development. This is also our expe- Silvia Umnikova, Consultant, Alexander Hughes reconsidering remuneration that employ- Bulgaria rience with internship and training pro- ers could offer to such young profes- grams. think that these people cannot come sionals, especially to those who have from anywhere else if they are not graduated abroad. Generally, there is a need for such pro- approached while still in the university, grams in all companies which have both as large companies like Microsoft, HP There is one other problem. Many of strategy and capacity to implement and others do. the Bulgarian students complete a them. The biggest problem in Bulgaria is Bachelor’s degree and right after this page to find people at middle management The number of students, who manage they finish a Master’s degree (for 5 level – since their number is limited on to realize their potential and start work- example in Business Administration). the market, the best option is to develop ing in their field while studying, is still They will be able to “sell” themselves them within the company. small. I think that there is a belief that to an employer much more easily if you cannot successfully balance an they acquire several years of profes- Companies act strategically when plan- education and work at the same time. sional experience in between the two ning their growth four-five years ahead, There is logic in this when university degrees. University programs also need and they know that they will encounter programs are not structured well. to be changed in order to meet ade- problems with staffing these positions. I However, many of the students are also quately the market demand. n cover story

Microsoft Relies on Internships to Find Its Pearl Leader Diana Stoeva, HR Manager Bulgaria, Macedonia, Cyprus, Malta and Albania, Microsoft Microsoft International’s Internship Program was launched just a few years ago and it is leaded by a dedicated HR Manager in the company’s HQ in Redmond, USA. Microsoft Bulgaria does not offer internships, because our local team is relatively small, and this is the reason why we put greater empha- sizes on promoting Microsoft International’s internship programs. We help our colleagues in Redmond by organizing different events for increasing awareness and presenting the program to students from Bulgarian universities.

The uniqueness of Microsoft internship programs is expressed by the fact that there are two major specialization areas, which are offered to the students.

The first subprogram is called Microsoft Internship Program Diana Stoeva, HR Manager Bulgaria, Macedonia, Cyprus, Malta and Albania, Microsoft and it is aimed at software design engineers and software design engineers in testing (as per IT business terminology). munity among Bulgarian students. Students who participate in We are proud of the fact that for the past three years we had this 3-months internship have the chance to meet other eight Bulgarian students who joined Microsoft’s Internship interns, just like themselves, from all over the world (100 last Program. Last year we had the biggest number of students year) and to exchange ideas and experience. Currently, the who were enrolled in the program – five persons from Bulgaria. internship program is held only in Redmond, but from 2009 it In 2007 there were no Bulgarian students enrolled in the pro- will be expanded to all our R&D (research) centers. gram, but in 2006 there were three interns enrolled in Microsoft’s Internship Program. It is interesting to mention that We have research centers in Europe (Denmark, Germany, UK), Microsoft takes care of all expenses of the students related to Japan, Australia, and South America, so the students will be travel and accommodation. The internship program starts in able to choose where they want to do the internship. Large June and ends in the beginning of September. number of the interns shows outstanding results and they are offered full-time positions at Microsoft. The results shown by We start the recruitment for the program from the previous the Bulgarian students are among the highest for the entire calendar year with the help of our colleagues from the Internship program. Marketing department who organize different initiatives such as the “Academic Day of Microsoft” in the leading Bulgarian uni- Until now I was talking about our “short” internship program. versities. This academic road show gives us the opportunity to Microsoft also has a more advanced internship program and help our colleagues in Redmond by explaining to the students its duration is more than two years. Because of that, and the what the program entails, what are the selection criteria, what fact that here the interns have two parallel roles, the require- is the enrollment process, etc. Microsoft has introduced very ments for the applicants are a slightly different from those for high entry requirements for its internship programs as the value the “short” program (Microsoft Internship Program). The for the participants is significant. extended program is known as Microsoft Academic College Hire (MACH) and Bulgaria will join it in January 2009. However, the fact that there are so many Bulgarian students enrolled in the program means that the entry requirements are The MACH program focuses not only on the development of achievable. The reason why Microsoft has organized its intern- core competencies of the interns, but also on strong collabora- ship program on international level and not locally at different tion with mentors (usually they are managers at our company). subsidiaries is that the two specializations are technically ori- At the end of the program, the interns have the opportunity to ented and are only applicable for our Research centers. We choose suitable for them career path with the help of spe- 6 feel that during this program the students develop their own cially assigned personal consultant. The interns in this program perspective of what could be achieved with our technologies are among the most talented people from every country, who since their creativity, imagination, and skills are at a very high also have exceptional potential. They are expected to develop level. This is why we are attracting such young and creative themselves and advance in their careers very fast as they are minds - they can actually contribute to the processes of devel- our future leaders. oping and testing new products. We have many success stories to share since the program For us, as an organization, the main benefit of this program is was launched in 2005, for example our HR manager who AmCham Magazine Bulgaria October 2008 that we have the opportunity to start building Microsoft’s com- started at Microsoft as a part of this internship program, as cover story well as many other colleagues from the USA and Microsoft’s Both internship programs are exceptionally exciting. I had the regional organizations. Therefore, very soon we at Microsoft opportunity to meet some of the last year’s MACH employees at Bulgaria will start looking for our “pearl” which is some- a conference in Atlanta and I must say that their enthusiasm, where around – either at a university or a recent graduate, energy, and way of thinking are fascinating. I am certain that so it can become part of our team. At the same time, being somewhere among them are the future leaders of Microsoft. We part of the MACH, this person will have the opportunity to aim not only at students in their final year of studies, but also at assume a real operational role in our subsidiary. Therefore, young professionals who have graduated in the past 3 years, and Microsoft Bulgaria will assist this young potential employee who have gained some useful experience working for other not only in building relevant network inside the company, but companies. Both internship programs (Microsoft Internship also to have access to best practices shared at different Program and Microsoft Academic College Hire) are very impor- international conferences, and also to taste out what we do, tant for us, because in combination they bring the technical and what our business does, and where the power of Microsoft operational excellence, which is bringing Microsoft forward for the comes from. past 33 years. n Businesses Lack Flexible System for Employment of Interns Emil Georgiev, Human Resources Director, Postbank In a situation of a crisis, the head count company or take part in expensive proj- is extremely important as a policy and ects so that they are able to pay back way of doing things. For example, you part of the sum. Later on, based on have an improved head count, which these projects in their CV, they are able represents a certain sum, part of the to easily find an employment. The budget for the given year. According to scheme is much more flexible. Business the law, interns should be hired with a and universities have discovered the contract, defined in the Labour Code as modus Vivendi – the solution which a Traineeship Contract. makes it possible to remain flexible on the market and therefore able to solve In this case, if the bank hires trainees their problem. Unfortunately, in our coun- with a contract, it deforms its head try this model still cannot be implement- count. The bank hires 80-100 to 200 ed due to various reasons: conservative people per year. Depending on the dura- Emil Georgiev, Human Resources Director, attitudes, mentality, legislation framework, Postbank tion of the single internship program, impossibility for universities to have extra this will determine the result of the head ness and the university. They are agents budgetary accounts. Universities here count at the end of the year. If they are of the business who watch closely the should be given freedom to be flexible. If appointed for a period of up to six specialization, the number of specialists, they have some financial activity, they do months to be trained, they may be and the quality of education. These are not have the permission to invest. I used reduced from 200 to 100 persons. the persons who establish the link to be teaching until 1999 and I may say During one year we will have 200 per- between the business and the university that when there are extra budgetary sons for two months. After this we will while the students are still studying. accounts, there are sums accumulated have 100 persons for four months, which mainly through education fees. The direc- means that in the end of the year the Relationship officers assess whether a tion that should be taken is to look for AmCham Bulgaria Magazine October 2008 October Bulgaria MagazineAmCham average head count will register 150 given student is suitable for a certain this specific link with the business and additional people employed. In a crisis company. A similar practice is present in have students participate in scientific situation this is too many. In this sense other countries as well, and basically this solutions of the business, so that money we should consider a more flexible is the model. Universities abroad are comes in. scheme for traineeship programs. After 47-percent financed by either the state’s all, these are not fully trained specialists, or the municipality’s budget. All other Currently universities are economically but people who are still being trained. funding comes through communication dependent. University professors do not We train people in order to find the best with business, through the various types have the stimulus to be demanding ones and hire them afterwards. Of of programs and research. The logic of because in such a way they would page these 200 people I mentioned, about 80 the funding of the university is of such a decrease the number of their students. 7 stay to work with us. In the higher edu- kind, that it is strongly dependent on busi- As long as this logic and the basis of this cation establishment people need some ness. On the other part, students who system stay the same, what we are talk- sort of traineeship. For example, in the pay for their education provide serious ing about here is pointless. We are trying universities of Bristol, Liverpool and sums; however, in the United Kingdom to compensate the shortages naturally, by Plymouth in the United Kingdom, stu- they are obliged to refund their education contacting students abroad, as well as dents in their third year already com- credit. The possibilities to refund it come student organizations. However, going the municate with the so-called relationship in various forms. While they are still stu- other way would lead to much better officers who are the link between busi- dents they may be financed by a certain results. n cover story

300 Students Joined UniCredit Team After Successful Intern Programme in 2008 UniCredit Bulbank has carried out internship programmes for several consecutive years now, aimed at training and developing the best students and ensuring permanent employment for the ones per- forming best during the programme. The main objective was to promote and improve their performance by expanding the bank activities, included in the programme, by increasing the number of students involved and prolonging its duration. UniCredit Bulbank offered an opportunity to talented and motivated young people to apply in practice the knowledge obtained through specialized educational programmes and professional training in the banking sphere. A former student, now working at UniCredit after she successfully passed the intern programme The internship programme is based on munication skills, initiative and organiza- bank with assets exceeding BGN 9 billion full-day active work at the bank. The tional skills, desire for team work. at the end of 2007. It is a universal bank, duration is two consecutive months. The servicing more than one million citizens students involved receive monthly remu- The internship programme of UniCredit and households, private clients, small neration. The periods for delivering the Bulbank for 2008 was exceptionally suc- and medium enterprises, large local and programme may be determined depend- cessful and as a result 300 interns joined international companies, etc. The Bank is ing on the possibility of the students to the team, 70 of them, i.e. 23%, have part of an European bank group, and it attend and the needs of the Bank. already been integrated into organization has a clear strategy and ambitious plans as young specialists. The ones who were for growth and development. UniCredit The programme is most suitable for can- employed at the Head office account for has one of the largest branch networks didates who are: working on their diplo- 4% of the total number of interns, the in Bulgaria with about 260 affiliates and mas or studying in the last course of rest were employed at the affiliates in the almost 4000 employees, it is ranking first their education (bachelor and master branch network. The programme is fur- in terms of loans extended – over BGN programmes) in specialties connected ther developed with the help of the 5.2 billion, and first in terms of share- with the banking business – economics, interns who are asked at the end of their holder capital - BGN 1.2 billion. The law, information technologies or business internship to give opinion and recommen- bank is number one in investment and administration; who have excellent com- dations on the organization and contents corporate banking, it holds leading posi- puter skills and command of the English of the time, spent at the Bank. tions in terms of deposits – BGN 6.3 language; who have knowledge and inter- billion and leading positions in the retail ests in the banking business; good com- UniCredit Bulbank is the largest Bulgarian banking. n

8 AmCham Magazine Bulgaria October 2008 cover story

Perfecting of Social Skills is Essential in Work Andrey Voynov, intern of Deloitte Bulgaria

- Please describe how you have been ing, which facilitates my communication appointed to work for the company? with the other Deloitte offices on our mutual international projects. On the sec- I applied for internship at Deloitte after ond place come my presentation skills and reading an advertisement in the press. After the ability to reach out to people, which is a test and three rounds of interviews I especially important for consultants who started as a trainee in the Management have to be able to get their ideas through Consulting Dept. of Deloitte in November to clients. Third maybe are research and 2007. The first round was with a Deloitte analytical skills, as they are a large part of HR manager, second round - with three the Business Analyst job at Deloitte. employees from the division I applied for and the third round was with the managers Andrey Voynov, intern of Deloitte Bulgaria - What are the most important skills to of the department. After a six month intern- - Is your educational background helping succeed in your field of business? ship I was offered a full time position in the you in your every day work, or you need same department. some extra qualification to deal with the Essentially in the beginning levels attention obligations? to detail and commitment are extremely - What is the field of your work? important. As you move up the ladder, I I have Bachelor and Masters Degrees from personally find quite useful perfecting the Management consulting – I work in the a very reputable school in the USA and that social skills – being able to establish a Strategy and Operations team, mostly on type of education helps me a great deal for bond and understanding with the new projects in the Public and Energy sector. the time being. First is the language train- people quickly and to motivate others. n The Challenge is to Solve a Problem When Taking Every Aspect of It Diana Shumanska, intern of Deloitte Bulgaria - Please describe how you have been member of the Student Diplomatic Club in appointed to work for the company? my university. I have spent some time working in a couple of NGOs and put my It all started by chance when my best legal English into practice while I was a friend recommended Deloitte. Although he legislative assistant in the Bulgarian parlia- has never been employed by Deloitte, he ment. Now I am doing my second year in was well acquainted with the high stan- a Cambridge specialization in English and dards of performance in the audit and European Union Law. However, seeking to advisory company. So I sent my CV and become a qualified consultant, I am plan- had two interviews – the first one was to ning to expand my knowledge in the field test my legal, language and technical skills of accountancy and tax. AmCham Bulgaria Magazine October 2008 October Bulgaria MagazineAmCham and the second one to meet Mr. Borislav Stratev, Tax Partner Deloitte Bulgaria. That - What are the most important skills to was the beginning of my interesting and Diana Shumanska, intern of Deloitte Bulgaria succeed in your field of business? rewarding journey in Deloitte. cessfully deal with an issue if you consider it from different angles and take Professional expertise in the field of tax, - What is the field of your work? every aspect of it into account when mak- soft skills, team-work and, of course, ing decisions. It is quite challenging and enthusiasm for the work are some of the I’ve spent approximately two years as an inspiring! skills. The most important, however, is to intern in the Tax, Legal and Business have the capacity and the will to adapt in page Services department, where I gained a - Is your educational background help- a very dynamic environment of local and 9 profound knowledge in dealing with admin- ing you in your every day work, or you international clients in order to satisfy their istration, reviewing and preparing docu- need some extra qualification to deal needs in a timely and qualified manner. ments. Now I am a consultant in the with the obligations? And the reason why Deloitte is so suc- Corporate Tax team and I really enjoy this cessful is that all the people here share mixture of economics, accounting, law and I have studied international relations and their knowledge and spirit with one com- tax. It will be really difficult to point out my law at the Law Faculty of the Sofia mon goal – to be the best. After all specific field of competence, because in University and this education definitely Deloitte’s most valuable capital is its pro- Deloitte I have learned that you can suc- helps me in my everyday work. I was a fessionals. n cover story

“If You Listen Very Hard, the Tune Will Come to You at Last” Rossen Manev, intern of Deloitte Bulgaria

- Please describe how you have been appointed to work for the company?

Actually, it’s a very interesting story that dates back to 2004. On February 6, 2004 I graduated the Academy of Economics “Dimitar Tsenov”, Svishtov, as Master of Accounting. Just about in a week’s time, on the fatal day - 13th of February, Friday, I decided to send my CV to the so called “Big 4 Companies”. I wanted to see if I could attract their attention and to be honest, I would have been more pleased just to receive a simple phone call. However, what happened exceeded all my expectations.

On the following Monday – February 16th at about 14.35 pm, I received a call from the HR Manager of Deloitte at that time asking me whether I was interested in internship in the audit department and when I could start. We signed the contract for the internship the same week and on March 1st, 2004 I started my internship in Deloitte. I couldn’t believe that a professional dream of mine came true in such a short time. I’ve always wanted to have my career in Deloitte. Rossen Manev, intern of Deloitte Bulgaria This is inspiring story about which I won’t go into details now but I’ll only mention it was in the distant 2002 and involves my well known However, I realized that I need to “upgrade” myself in order to “brother in arms” (as in Dire Straits “Brothers in Arms”) who was be a competitive and good professional, especially, when the the Audit Partner and Country Leader for Deloitte at the time Mr. working environment is dynamic and challenging. At present, I Vasko Raichev. I have been a trainee for 5 months in Audit when I am an ACCA student. I am too critical of myself and always try was offered to start as an Assistant in September 1st, 2004. Since to improve and develop further. then my Deloitte career evolved in the following way: Experienced Assistant, as of 1st September 2005 - What are the most important skills to succeed in your field Semi-senior, as of 1st September 2006 of business? Senior, as of 1st September 2007 Supervisor, as of 1st September 2008 In addition to the so called “usual requirements” – education, language and computer literacy, everyone must have certain It’s obvious how the trainee position in Deloitte offers a number extra skills and characteristics. Personally, I would point out that of professional opportunities if one possesses the required it is important to believe in yourself no matter the obstacles you qualities but most of all the passion for it. face. One should be hard-working, devoted, with positive attitude and a good teammate (after all we are a team), open-minded, - What would you tell about your specialization in audit? communicative, always trying to get better and acquire new knowledge. Of course, we must not forget that sharing our pro- I have been part of the Audit department since March 1st, 2004. fessional and even life experience with each other is very Most of the engagements I have been assigned on, so far, were important for our success. In our team we work in a rather audits of leading manufacturing and leasing companies. Audit informal and friendly environment, supporting and helping each gives you a profound knowledge on the overall scope of the other. What impressed me most when I joined Deloitte in 2004 business - profit and non-profit organisations to which Deloitte was the support I had received from the management – seniors, provides all related services. And further you develop your supervisors, managers, and even partners. However, the suc- 10 humour and positive attitude while facing all sorts of unex- cess is not only a question of skills but also a matter of circum- pected circumstance – where else could you get as a New Year stances and a lot of luck. And, at the end, being a big fan of gift an inventory count attendance on 1st January, 8am. music, I can’t help but quote a couple of lines from one of the most beautiful songs ever – Stairway to Heaven by Led - Is your educational background helping you in your every Zeppelin: day work, or you need some extra qualification to deal with the obligations? “If you listen very hard, the tune will come to you at last. When all are one and one is all AmCham Magazine Bulgaria October 2008 My accounting education helped me a lot at the beginning. To be a rock and not to roll!” n

news

Ratification of the U.S. - Bulgaria Treaty on Avoidance of Double Taxation Seventeen years after the first initiating talks started in 1991 on income tax treaty, in September 2008 the U.S. Senate ratified the Convention between the Government of the United States of America and the Government of the Republic of Bulgaria for the Avoidance of Double Taxation. Thus the Convention, popularly known as Treaty for the Avoidance of Double Taxation, will enter into force in January 2009 after the remaining, essentially administrative approvals by the U.S. National Security Council and State Department.

The two countries signed the Treaty at Washington on February 23, 2007 after a 3-year lobbying campaign spear- headed by AmCham. An accompanying Protocol Amending the Convention between the Government of the United States of America and the Government of the Republic of Bulgaria for the Avoidance of the Double Taxation was signed in Sofia on February 26, 2008. On July 11, 2008, the Bulgarian Parliament ratified the Protocol of Amendment, following an earlier ratification of the Treaty. The US President George Bush wrote to the Senate of the United States with regard to the Treaty for Avoidance of Double Taxation on June 4, 2008, recommending that the Senate give early and favorable consideration to the proposed Treaty, and give its consent to ratification to both the Treaty and the proposed Protocol of Amendment.

The ratification of the Treaty will make a difference for the businesses and the citizens of both countries. The Treaty generally reduces the withholding tax on cross-border dividend, interest, and royalty payments. Importantly, the Treaty eliminates withholding tax on cross-border dividend payments to pension funds and cross-border interest payments made to financial institutions. It also contains provisions designed to prevent so-called treaty shop- ping.

The enforcement of the Treaty in 2009 will help accelerate the growing flow of U.S. – Bulgarian trade and investment and will ensure that the investors maximize the economic benefit from their projects. It will also allow a wider circle of investors to take advantage of the significant opportunities afforded by the favorable investment climate in the country.

The American Chamber of Commerce in Bulgaria and its members have played a vital role in restarting the long- stalled Treaty negotiations, and had lobbied successfully for bringing them to a conclusion both in Sofia and in Washington D.C. In 2003 the Chamber submitted its position paper and in-depth analyses both to the U.S. Treasury and to the Bulgarian Ministry of Finance, and assisted the process of negotiations in 2005 and 2006 between the U.S. Treasury and the Bulgarian Ministry of Finance. Every opportunity to raise the issue and accelerate the process was used: meetings in the U.S. Treasury in Washington, D.C. and the U.S. Chamber of Commerce, regular and ad hoc meetings in the U.S. Senate and Congress and the Bulgarian Parliament and Government, advocacy letters and position papers to all interested institutions. It paid off.

On behalf of the Board of Directors and the AmCham Public Affairs Committee we would like to extend gratitude and appreciation to all companies and individuals that had worked actively with AmCham Bulgaria to lobby for the 12 Treaty and its ratification. We all can share this stellar success and congratulate ourselves for being agents of change.

Borislav Boyanov Kenneth M. Lefkowitz d President Vice-president and Public Affairs Committee Chair AmCham Magazine Bulgaria October 2008

analysis Bulgaria and the Crisis By Dimiter Chobanov*

The crisis of the international finan- far from the truth, however the prob- the Central Bank of Japan, in particu- cial markets, which started officially in able policies to address it will unfortu- lar. The monetary policy of these August 2007, has actually been exist- nately be directed namely to strength- banks consists of specifying of a tar- ing since a long time both in the ening the interference of the state at get interest rate, which the bank tries United States and the European Union, the individual markets. to maintain through various instru- and Bulgaria. Actually its signs were ments. seen quite earlier, however it did not Emergence of Crisis show itself to present according to This interest rate and its amendments the traditional (not quite economic) To a great extent the crisis has been are a product of the central banks’ 14 understanding of it. Moreover, the caused by the policy of the central forecasts for the development of main claims that it has been caused by banks across the world and of the big economic indicators for the respective market forces and the insufficient ones, such as the Federal Reserve country or zone, and the average regulation of financial institutions, are System, the European Central Bank, term rate of inflation is of major sig-

* Dimiter Chobanov is Chief Economist with the Institute of Market Economy. He graduated finance at the University of National and World Economy. A founder and a member of the Friedrich Hayek Bulgarian society and of the Bulgarian Macroeconomic Association. He was a probationer with the representation of the International Monetary Fund. He used AmCham Magazine Bulgaria October 2008 to work as a consultant with the World Bank analysis nificance. The individual specifying depending on the source of loans. supply through new money maintains of the interest rate of the central When the savings of the households the interest rate at an artificially low bank, as well as its capabilities to increase, this means that they are level and causes incompatibility influence the credit policy of the other oriented to the future in a greater between the savings and the invest- banks put money supply under the extent. ments. The low interest rate of the control of this institution. central bank stimulates a temporary As a result of the availability of more but not sustainable growth. The artifi- This is the main factor of the busi- loan funds, the interest rate goes cial boom caused by credits is unsus- ness-cycle emergence. It is sustain- down, which enables the business to tainable in its essence and is inevita- able, when growth of economy is undertake new investment projects, bly followed by a drop, as the invest- caused by increase of savings. The which have previously been consid- ments should drop to the level of contemporary pecuniary system, dom- ered non-profitable. At the new level savings.

Prime minister Stanishev met with the governor of Bulgarian National Bank Ivan Iskrov and with the minister of finance Plamen Oresharski to discuss the world finance crisis and the European Union action plan. AmCham Bulgaria Magazine October 2008 October Bulgaria MagazineAmCham inated by the central banks, enables of equilibrium interest rate, both sav- Measures against Crisis emissions of money, which have no ings and investments go up. This coverage. The credit expansion means increase of the economy’s production The plan against the crisis (The that in practice money appears, which capacity specifies the actual growth. Paulson Plan), adopted by the United is not covered by goods or services. States, represents a direct transfer of The initial effect from the additional The effect of the credit expansion, 700 billion US dollars from the local emission of money regarding the caused by the central bank, is differ- tax-payers to some big financial insti- structure of the capital is similar to ent. The households do not become tutions. The salvation is made through the one of increased savings, however more economical or future-oriented. injecting money in the economy by page the long-term effect is quite different. The central bank is just increasing the carrying out operations in the open 15 supply of loan funds through injecting market. They are created from noth- The level of investment in economy is new money in the credit markets. ing, they are not covered by goods determined by the demand and sup- While the equilibrium interest rate is and services and thus the wealth is ply of loan funds. The increase of the decreasing, the business is increasing not increased. Only nominal values supply of loan funds leads to decreas- investments, while savings actually and mainly prices grow. ing of the interest rate and to increas- drop. ing the investment crediting. The final Is this plan required to protect the consequence, however, is different, The supporting of the loan funds financial system from a complete analysis

collapse? Is it possible the credit growth and effectiveness. Government ond possibility is not stable. markets to break down? These are is not a generator of growth, it only important questions, whose answers takes the resources of A and gives Risks, which the development of the will be sought in the months to fol- them to B. Bulgarian economy faces, get bigger low. However, are banks that special because of both the unfavourable that they deserve to be saved? Is it Instead of pointing out the symptoms, external conditions and some internal possible that nobody will be able to it is necessary to let the market func- factors. The saturation of the real borrow money and the economy will tion and terminate the possibilities estate and construction sectors will be suspended if banks do not exist that allow making money out of noth- not allow the implementation of the any more? The banks lend the ing. growth rates available so far. The cri- money of depositors and of their sis of financial markets will most owners rather than their own money. The Crisis and Bulgaria probably create difficulties for fund- The fact that the banks have disap- raising by increasing long-term inter- peared does not mean that lenders Against the background of these est rates and will thus make a smaller will disappear. The borrowers will still events, the current status of Bulgarian number of projects work successfully. want loans, and the lenders will give economy is good. The Bulgarian Besides that, it is possible that some them out. The only question is how economy had the third highest growth of the already launched projects to they will meet. The technologies for in Europe in the second quarter of turn out unsuccessful, which might that have been improved significantly 2008, and only Romania (9.3%) and cause their termination. This will after the Great Depression of 1930, Slovakia (7.6%) have better status result in reduction of economic activ- the companies could sell bonds, according to this indicator. Perspective, ity and employment, and increase of issue new shares or try to use some however, is not good. The bankruptcy the unemployment rate. In short term of the hedge funds. of Lehman Brothers, the difficulties of plan, growth of prices and wages will Merrill Lynch, AIG and other big com- be delayed. Actually, the financial system has to panies in the financial sector, includ- be saved just from the institutions, ing those for mortgage shares in the It is difficult to forecast the exact which hold bad debts and are cur- United States, are an evident signal moment of the occurrence of these rently exhausting their capital, while for the availability of a large scale risks but they should be a signal for they expect to be saved. In practice crisis. It will have an unfavourable the Bulgarian companies and citizens they obstruct the activities generating effect also on the Euro zone rather to be more cautious about invest- wealth in the financial sector and the than only on the USA economy. This ments they undertake. The bankruptcy remaining parts of economy. will reduce the external demand and of big international banks showed that might have effect on the economic no one is secured against mistakes Conventional thinking presents the development. On the one hand, especially in a period of crisis. Despite economic adaptation or the economic Bulgarian companies export goods of the availability of protection mecha- recession as something terrible, almost relatively low added value that com- nisms like bank supervision, guaran- the end of the world. In fact, the eco- pete other manufacturers mostly in teeing deposits at banks and a pos- nomic adaptation is nothing more than prices and are not differentiated sible refunding from the central bank a period, within which the scarce according their quality. This concerns in case of a systematic event, risks resources are moved in accordance mainly raw materials and processed stay and have to be managed care- with the priorities of the consumers. fuel. Reduced economic activity and fully. Interference in the market should Best results are achieved when the production will most probably result in be limited to a minimum, only in case market itself performs the allocation. demand of fewer quantities of these of a threat for the complete bank If entrepreneurs have the freedom to goods and that will have a negative system. Commercial banks should be do the allocation of resources accord- impact on revenues from export. On let to manage on their own, thus ing to the preferences of the society, the other hand, because the import showing which of them have good that would resolve problems in the component is substantial, that will management. fastest way. Some activities will totally result in demand of fewer quantities disappear and others will be expand- and reduction in the expenses for As a whole, the current positive ed. import. results must not serve to calm down the rulers. The 2009-2010 period will The rescue plan of the US Financing of import will also be ham- be more difficult for the Bulgarian Government, which most probably pered, as in periods of crises invest- economy and risks of delaying eco- 16 will be followed by similar plans in ments shrink, because the perception nomic activity will increase. Under the European countries, will not allow of risk in certain economies change these conditions, the proper economic the reduction of activities that are at and that will effect the incoming policy, focused at enhancing eco- a loss. It will not save only the activ- capital flows in the country. Therefore, nomic freedom, is of particular impor- ities that it cannot allow to maintain shrinking of the deficit on the current tance. In view of the forthcoming and which consumers do not want account of the balance of payments elections in 2009, however, the rather than economy. It will support is possible, while the alternative is required reforms will again be forgot- losses and promote ineffectiveness disbursement of the currency reserves. ten and that will limit the potential for AmCham Magazine Bulgaria October 2008 by draining resources meant for In long-term plan, however, the sec- future development. n

analysis Global Financial Crisis Poses Serious Risks to Bulgaria’s Economy

The unfolding financial crisis in the US likely soft landing scenario for Bulgaria sions funds are mandatory for all and its effects on the global economy will most likely pass through a weaker employees born after 1959. Taking have already brought significant losses GDP growth of 3-4% in 2009 from into account inflation effects, the real to various segments of the Bulgarian more than 6% in 2008 but this correc- value of losses incurred on pension economy but the lagged effects from tion could be still very painful for savings is about 30% y/y as of the end the crisis could be even more dra- many business segments. Policy mak- of September. Life insurers have also matic. Investors on the stock markets, ers should also cope with risks of suffered from price corrections but the including more than 2 millions employ- politically driven expenditure boosts size of devaluation is quite small due ees with mandatory contributions to ahead of the general elections in Q3 to their low weight in the local econo- pension funds, have suffered huge 2009 as well as institutional gaps that my and low exposure to risk assets. devaluations. Several segments of the have led to a series of corruption real estate market have incurred loss- scandals and freezing of EU funds. Real estate markets: The global finan- es or lower than projected return rates cial crisis has started with devaluation with serious repercussions on the Direct effects of real estate assets in the US that construction sector and the volume of has quickly reduced the inflows of foreign investments in local properties. Stock markets: The start of the finan- foreign investments to local properties. The inflow of net foreign direct invest- cial crisis in the US in the second half The price corrections are limited to ments (FDI) fell dramatically in 2008 of 2007 had almost immediate effects vocational properties for now and part and increased the risks of external on the global stock markets and the of the lost investments from UK citi- liquidity shocks, as the share of short- Bulgarian Stock Exchange in particu- zens is offset by Russian capitals. term foreign debt is about to exceed lar. The market capitalisation of the Nevertheless, many large-scale real the value of international reserves for Bulgarian Stock Exchange plunged estate projects are already frozen and the first time since the setup of the more than 40% since end-2007 to the rates of investment returns are currency board regime in 1997. BGN 16.7bn (EUR 8.5bn) towards the falling to critical levels amid large end of September 2008. In absolute stocks of unsold properties that will This means that a sudden withdrawal terms, the stocks traded on the stock further pressure the market. of capitals, driven by speculative exchange lost more than BGN 12bn of attacks against the currency board or their value. Mutual funds with high Cost of financing: Inter-bank interest liquidity problems on the side of exter- exposure to stocks traded on local or rates have risen almost immediately nal lenders, could seriously challenge foreign markets report similar write- after the start of the global financial the capacity of the central bank to downs of about 40% for the period. crisis but not dramatic changes are maintain the fixed exchange rate observed in the price of commercial against the euro. Moreover, the risks Pension funds: As the local pension lending and saving deposits. As far as of external balance shocks will coin- funds keep part of their investment the commercial bank system in Europe cide with external demand restraints portfolio in stocks, the average return is not seriously affected by the col- reflecting the global economic slow- rate on savings held in voluntary or lapse of the US subprime mortgage down that will also weaken the coun- mandatory pension funds moved to a market and investment banking, the try’s growth rate in 2009. negative territory of about 15% in late impact on the local commercial credit September in relation to the beginning market will be quite small. The country is still likely to avoid the of 2008 that is equal to write-downs in hard landing scenario under the IMF the tune of EUR 200mn spread on a Moreover, the downward correction in 18 forecasts that the world economy will large number of customers, as the commodity prices and consumer start to recover in 2009. The more contributions to the second-pillar pen- demand will help disinflation moves

This article is based on extracts from ISI Emerging Markets IntelliNews publications: Bulgaria This Week and Bulgaria Country Report. For more detailed information please contact ISI Emerging Markets office in Sofia at +359 2 8160404

AmCham Magazine Bulgaria October 2008 or [email protected] analysis that would increase the likelihood for ECB to cut policy interest rates to fight the risks of recession in the eurozone. However, large-scale investment projects or companies that rely on Eurobond issues or investment bank loans will face much higher financing costs. This will apply to major state- run projects such as the nuclear plant in Belene and the pipelines for transport of natural gas (Nabucco and South Stream). Indirect effects

Growth Prospects: The global slowdown and the downturn on the country’s main export markets in Italy, Germany, Turkey and Greece, will cer- tainly hurt local exporters and the overall economic growth. IntelliNews, the editorial and research arm of ISI Emerging Markets, projects that the orating external balance, as the ruling local subsidiaries of EU-based com- GDP growth will slow to 3-4% in 2009 parties have approved a large spend- mercial banks and there are no rea- from more than 6% in 2008. ing boost aimed at popularity gains sons for sudden withdrawals or spec- ahead of the general elections in Q3 ulative attacks as far as the local The growth rate in 2008 will remain 2009. Although the planned fiscal banking sector is boasting sound technically unaffected by the global spree at the end of 2008 will not profit margins and a high-quality crisis due to one-off base effects in endanger the budget surplus target credit portfolio. The main liquidity the agricultural sector that will offset set at 3% of GDP, it is still inconsistent risks for the economy could materia- the slowdown in the industrial and with the other main fiscal targets for lise only in case that the global service sectors. The slowdown projec- CA deficit narrowing and low inflation. financial crisis moves towards the tions are already confirmed by the The country’s external liquidity will be commercial banking segment of con- weakening pace of job creation in the thus exposed to extreme risks in case tinental Europe but this looks unlikely summer months of 2008 and the of large-scale capital flights that could at this stage. steady deterioration in the business be driven by either speculative attacks sentiment surveys of the statistical against the currency board regime or The way ahead office. panic movements stemming from the global financial crisis. The country is about to avoid the hard External Balance: The annualized CA landing scenario but it will also require gap widened to nearly 25% of GDP as One of the most worrying indicators in an adequate policy response of limit- of July 2008 from 21.5% in 2007. The the country’s external position is the ing non-investment budget expendi- net inflow of FDI shrank to 70.6% of steep rise in the stock of short-term tures and encouraging domestic sav- the CA deficit for the same period external debt, which is about to ings through further reduction in the AmCham Bulgaria Magazine October 2008 October Bulgaria MagazineAmCham from more than 100% in the last sev- exceed the stock of international overall burden of income taxes and eral years. Given the global financial reserves for the first time since the mandatory social insurance contribu- crisis and stagnating demand on main setup of the currency board regime in tions. export markets, the CA deterioration 1997. International reserves cover poses very high risks on the country’s slightly more than 100% of the short- Under the IMF forecast that the global external liquidity. term external debt as of September to economy will recover in 2009 even if mark a dramatic change from more the ongoing financial crisis has not This makes the country’s external than 300% about 5 years ago. The reached the bottom yet, the Bulgarian position quite vulnerable to sudden figures for short-term liabilities include economy is likely to pass through a page withdrawals of foreign capitals. The instruments with maturity of one and soft landing scenario like most of the 19 recent retreat in the international oil less than one year counted as of the other emerging markets in Europe. prices will provide a slight relief to the date of settlement. This will most likely mean a slowdown country’s external balance but the in the GDP growth from more than 6% corresponding drop in import costs will This means that the short-term debt in 2008 to about 3-4% in 2009. But be more or less offset by cheaper would be even higher if reported in there are still risks of inadequate pol- metal exports. On top of this, there outstanding repayment periods. On icy reactions like excess fiscal boosts are clear indications of inadequate the positive side, most of the external driven by the forthcoming general policy responses to the rapidly deteri- financing is commissioned through elections in 2009. n interview Everyone Is Special At United Medical Group Kiril Ivanov and Andrey Markov of UMG share their experience and thoughts on how to improve the quality of life of your employees

Andrey Markov (AM) is Chief Executive Officer of UMG. He Kiril Ivanov (КI) has been Commercial Director at United has over 25 years of experience in the healthcare manage- Medical Group /BHIF since the beginning of 2008. He has ment. He has a Master’s degree in economics from the nearly 10 years of experience in sales at senior manage- University of National and World Economy as well as a ment positions in МTel and Vivatel. He has a Master’s diploma in Healthcare Management from Michigan State degree in economics from the University of National and University. He had been an Executive Director of St Ekaterina World Economy as well as certificates in Strategic account Hospital (1992-2007) and the National Cardiology Center management from CME in Belgium and Neuro Linguistic (1986-1992). Programming from the Allinn Business School in London.

- Could you please briefly present United Medical Group КI: Exactly. We have acquired 2 occupational medicine (UMG)? companies with over 6 years of experience in the field, and consolidated them into one company with a nation-wide АМ: UMG is a company that works towards the improvement coverage. We carry out all types of the required screenings, of the health status and the quality of life of each person and risk analyses, evaluation and reporting on the health status organization. We own 8 medical centres in Bulgarian (in Sofia, of the employees. Employers are obliged by the Law to Plovdiv, Varna, Pamporovo, etc.), voluntary health insurance provide safe and healthy occupational environment and they fund (Bulgarski zdravnoosiguritelen fond) and an occupational should not underestimate the fact that critical situations healthcare services company. UMG was found to invest in the might arise. The close cooperation between the medical Bulgarian healthcare services sector and is majority owned by centres within UMG lets us carry out check-ups in no time the South East Europe Equity Fund II (SEEF II). Investors in and up to the required standards. In fact, every employer SEEF II include Overseas Private Investment Corporation, a US has a single point of contact at UMG for the three types of Government agency as well as leading European and North services we provide and that saves up time, efforts and American financial institutions. money.

КI: UMG is the first purposeful investment in integrated health- - What are the benefits to the employers from voluntary care provision for the corporate sector in Bulgaria. We analyse healthcare insurance? the needs of each prospective corporate client and on that 20 basis we work out an individual offer. Our clients are very KI: Let me first of all congratulate all the employers on their demanding. Schneider Electric, Beiersdorf Bulgaria, Automotor choosing UMG as a partner and provider of quality healthcare Corporation, Oracle, Coca Cola Bulgaria, Lirex, Lloyds Register insurance. They have selected us not only because of the and BASF are just a few of those brands that placed their trust optimal cost-value ratio but also because of our best-in-class in us. Everyone who has visited our headquarters feels spe- medical coverage, the amount of financial liability, personal cial. attitude, experience and traditions (Bulgarski zdravnoosiguritelen fond, has been providing healthcare insurance since - In addition to healthcare services, you provide occupa- 1997; the occupational medicine has been our specialty since AmCham Magazine Bulgaria October 2008 tional services too? 6 years ago). interview

A number of our clients say that our voluntary health insur- l We have nation-wide coverage – employers and employees ance packages have helped them keep their best employees alike could choose hospitals and doctors from across the and increase their retention rate. Voluntary health insurance country – and that makes us ideal for organisations with well- has also reduced the rate of absence due to illness. The developed branch networks state has realized that the present day healthcare system is l We work with over 600 of the best medical centres in dif- imperfect and that employers should be encouraged by tax ferent parts of the country incentives – up to BGN 60 per month per employee is tax l Our product could be tried out by signing of an up to free. 3-month agreement – we are the only one with such short- term contract options. - What about the benefits to employees? - What is the formula of success in your opinion? КI: We are all aware of the fact that the National Health Insurance Fund, financed by obligatory healthcare contribu- КI: Sell by consulting your client what is best for him. Meet the tions lacks resources and high-end-medical equipment. That highest possible standards, the highest possible requirements. affects the possibilities for medical treatment of complicated Be close to where business is – both literally and metaphori- cases. If employees, however, hold a voluntary insurance cally. One of our medical centres, for instance, is right at the healthcare card with us, they feel protected and safe about heart of business – in Business Park Sofia. their health. They could choose among all medical resources available in the country – all individual healthcare practices - Your 30-second elevator speech? and medical labs with state-of-the art equipment. They also have a phone access to a doctor and a representative of UMG КI: If you want to find out a new way of retaining your best 24 hours a day, 7 days a week, 365 days a year. talent while increasing efficiency at work and reducing your company corporate tax, call our green line 0700 18 008. And - Why chose you? we would gladly show you how to do it.

КI: Because of the following main reasons. АМ: Kind words and professionalism are most needed when l We provide an integrated solution for healthcare services to one is ill. We talk about “quality of life” because we offer employers services that make the life of both the healthy and the l Each decision maker has a personal account manager - unhealthy people more relaxed, safer, joyful and happier. A Corporate healthcare insurance expert different quality of life, in a word. n

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page Di s c o u n t s : • w o u l d s e r v e a s a n i d e a l n e t w o r k i n g opportunity f o r p o t e n t i a l 21 AmCh a m Me m b e r s ...... 20% f o r e i g n i n v e s t o r s a n d bu s i n e ss m e n visiting Bu l g a r i a . Ad v e r t i s i n g Ag e n c i e s ...... 15% Ma x Vo l u m e Di s c o u n t ...... 10% Th e Ri g h t Me s s a g e t o t h e Ri g h t Au d i e n c e . For more details please contact: AmCham Bulgaria Office – Nadia Vakareeva, phone: 974 27 43/4, e-mail: [email protected] AmCham Bulgaria Magazine – Milen Marchev, phone: 846 88 32, e-mail: [email protected] economy Budget 2009: Pre-Election Spending Without Purpose Next year the Government will both spend „to show off”, and save on behalf of the financial stability

By Mina Georgieva

Leaders of the ruling parties coalition Sergey Stanishev, Achmed Dogan and Simeon SaxCoburgGotha during discussions over the Bulgarian State Budget for the year 2009. They announced that healthcare and education have to be funded much more than the previous years.

In 2008 as well, for the sixth year in a When Numbers Speak …. The expenditures amount to 12.2 bil- row, the government is executing a lion leva, which represents 48 per cent state budget with underestimated rev- By July 31, the fiscal reserve exceeded of the annual plan. The positive bal- enue and expenditure part. A number over 10.7 billion leva. The revenues in ance or the budget surplus stands at 22 of analysts and quite ordinary Bulgarian the consolidated fiscal programme at 4.2 billion leva. citizens ask themselves: What is the end-July stood at 16.44 billion leva or purpose of this tradition? Are the 60.5 per cent of the annual plan. It was formed from 512 million leva underestimated revenues in the bud- Compared to the same period of the European funds and 3.7 billion leva get, whose overfulfillment at the end last year, the revenues increased by budget proceeds. According to the of every year reports values twice about 25 per cent. This is shown by the Ministry of Finance, the good tax col- higher than the planned ones, mean a financial data for the execution of the lections, the received one-off non-tax better working economy or is this the state budget by July 31, published on revenues as well as the significant AmCham Magazine Bulgaria October 2008 next policy of the Government? the site of the Ministry of Finance. volumes of advance payments received economy during the current year from the most in the projects, however there year. All budget authorities and institu- European funds, whose actual imple- are many cases where this commit- tions are in embittered fight to receive mentation will be carried out in com- ment stands at the half of the value. the biggest possible part of the sur- pliance with the implementation of the After the European Commission has plus. programmes helped to form this posi- frozen a significant part of these tive balance. funds, the Bulgarian Government also Requests for the “saved” the resource for its participa- Distribution Come from On the other hand, the main part of tion. Many Parties the investment costs is traditionally made in the second half of the year, The current values of the budget sur- Starting with the doctors and their which is related mainly to seasonal plus are standing at 4.2 billion leva ultimatum for 100 million leva, passing factors and with the specifics of the currently and if this tendency is pre- through the need of at least 1 billion statutory regulation of the investment served until the end of 2008, the leva for infrastructure and at least 90 process. surplus will reach between 5.5 and 6 million leva for updating pensions, and billion leva. This amounts to almost arriving at the European commitments We cannot ignore also the other rea- one third of the total revenues in the of Bulgaria to the amount of 500 mil- son for the surplus - the planned but state budget – 18.3 billion leva, which lion leva. A question arises - which of not paid so far costs under Euro proj- shows not good planning of revenues these demands is most reasonably the ects. For the first time this year, it is and expenditures in the country. The Government to satisfy? accumulated from non-settled pay- generation of the big surplus is a ments. The state has the commitment positive factor and its reasonable dis- Fierce discussions take place in soci- to co-fund the approved projects tribution by the Government will deter- ety and media about how to spend the under the European funds. The budget mine to a great extent the investment money. The biggest part of the participates with 10 to 20 per cent in climate in the country for the next resource, which will be accumulated from the budget surplus, should be invested in the infrastructure projects, which generate economic growth, if the Government aims at long-term economic prosperity, indeed. We should remind here that the Government owes the society because it had returned several times the contract for the construction of Trakia Highway, resigned it and finally spoiled it. According to latest data it will cost 250 million leva or negligible small part of the surplus. If no concession- aire is found, the Government should invest alone in this project.

Bulgaria is the only EU member-state, which has no motorways connecting its capital with the sea resorts. Well, the main part of the money could be AmCham Bulgaria Magazine October 2008 October Bulgaria MagazineAmCham spent on covering some current costs and for the Pension Fund. However, this will be a bad sign for populist intentions and short-term strategy.

Against this background, the Government has started the budget procedure for the next year, 2009, in February. The “self-restrictions”, which page the team of Financier No. 1 Plamen 23 Oresharski has included in the new financial plan for the next year, are at least a few. First, the next undermin- ing of the financial plan of the state by means of a budget excess. As it is known, the excess of the revenues Right before proposing of the new state budget Prime Minister Stanishev appeared on his motorcycle at the over expenditures, i. e. the seizure of Balkan bikers meeting near Veliko Tarnovo. more money from the tax-payers is not economy

purely Bulgarian managerial folly. To plan a surplus in the budget is an imperative requirement of the European Commission, as thus the state lines its Grey Economy in Bulgaria financial stability with concrete. Growth at 34% Another key specific of budget 2009 The growth of the grey economy in Bulgaria stands at about 34 per cent, a study is the factor of “elections”. That of the Bulgarian Industrial Association showed. Annually, this percentage means that the Government has to increased and had already acquired the character of epidemics. According to both spend „to show off”, and save on these data, the economic growth of this country is about 8 percent rather than behalf of the financial stability of the 6.5 per cent as the official statistics showed. state’s treasury. This specific maneu- vering with the money of tax-payers is The main sources of the grey economy in Bulgaria include non-issuance of pay- normal and traditional. However, before ment documents or invoices and reducing prices in sales of shares and assets, elections, fussing around the accrued mainly in the field of real estate. According to BIA experts, construction, tourism resources in the budget fund is getting and the services are the sectors taking the biggest share in grey economy. A more and more neurotic. new moment is the so called “white hollow safe”.

Fiscal Policy 2009 In this case, the employer pays wages and security in compliance with the employment contract, however he also pays additional money, which are offi- Taxes on income and on profit are cially in the cash desk of the enterprise. currently minimal and will not drop further next year, while the value- added tax (VAT) will remain 20 per Rulers about the Budget European Union as a whole, the cent. Currently the income tax is 10 Finance Minister also said. per cent, and the rulers have imple- According to Financial Minister Plamen mented the flat tax as of January 1, Oresharski, education, health care and Business for Fisk this year. As of 2009 the contribution the social services are the priorities of paid by the employer for a pension of Budget 2009. Financier No. 1 declared As a whole, the representatives of the the employee will decrease by 2 per publicly that some 7 per cent of the Bulgarian business are supporting the cent. This will happen when the state GDP will be earmarked for the public macro frame of Budget 2009, Bulgarian will take over 12 per cent of the con- investment programme for 2009. He Industrial Association (BIA) Chairman tributions. said that a step is envisaged for a big- Bozhidar Danev said. The employers ger decentralization, and that unified approve the unified VAT rate rather Thus the distribution of the money expenditure standards will be devel- than the differentiated one as some for health and pension between oped for the support of the municipal sectors offered recently, as in the employee, employer and state will be administration. According to Oresharski, case of a differentiated rate there is a 8:10:12 per cent. Currently, the money this is a way to balance the differ- danger of increasing the share of the is paid by the employer and the ences in payment of the officers of grey economy. employee in a 65:35 ratio. It is also different municipalities across the expected the ratio, which will be country The business offers also the method- added to the pension for every year ology of calculating the tax on waste, of experience, to be increased from Education, health care and the social i.e. it should be according to the dis- 1 per cent to 1.1 per cent. The new services are the priorities for the bud- posed off waste rather than on the rate will come into force as of get of the next year in regards to the areas of buildings. January 1 next year. Most probably, poorest strata of the population. The a decision will also be made pen- co-funding of the projects under the Another major proposal of the busi- sions to be increased by 33 leva on European funds is also an accent of ness is to increase drastically the tax the average as of October 1. the budget. assessments of real estates, as this will bring in the open the turnover in However, Simeon II National Movement The macro frame of Budget 2009 will the real estate sector, and, on the (SNM), which is one of the three par- plan about a 6.5 per cent annually, as other hand, to decrease the tax rates ties of the ruling coalition said, that it much as was forecast for this year as on the property, so that this tax to 24 will propose that the tax on profit be well. The gross domestic product will remain the same as a whole. reduced from 10 to 8 per cent. be about 69 billion leva. According to Minister Nikolay Vassilev, The lack of qualified work force for Budget 2009 should not be made in a The growth of the gross domestic some sectors, and of workers for sec- pre-election way. It should include a product for 2009, which will be planned tors such as the construction is out- moderate raise of wages and the bud- in the budget for the next system, will lined by business as a problem. In this get surplus should be higher than the stand at about 6 per cent, which is respect, there is a proposal to simplify one of this year, which stands at 3.5 high economic growth against the the procedure for import of construc- AmCham Magazine Bulgaria October 2008 per cent. background of the slowdown of the tion workers from countries outside

economy

the European Union. It is still being discussed whether the ficient for the retired persons to have minimal wage should remain within the a normal standard of living. The per- According to the forecasts of the size of the planned 240 leva under the manent disputes about deficiencies in Finance Ministry, at end-2008 the draft 2009 Budget or should be the system, insufficient money and actual surplus, which could be spent increased. requests for a part of the budget sur- above the set apart 3 per cent, will plus could, however, be avoided with stand at about 1.2 billion leva and the An add-on of 100 leva will be received the establishment with the so called business offers that it is spent on con- by people with lowest incomes, who Silver Fund. There are similar schemes struction of infrastructure. receive energy aids and will not ben- in other countries as well and their efit from the recalculation of the pen- goal is to alleviate pressure on the The employers pointed out that they sions in the autumn. social insurance systems rather than are against any social payments both increase pensions. from the budget and from the surplus “We will try to do our best for the for supporting people of working age, indexation of the pensions in the next The establishment of the so-called who are mainly low qualified or with- year, however it is not clear yet wheth- Silver Fund has been considered since out education. er they will be increased once or twice years in Bulgaria, however two draft in 2009”, Maslarova commented. bills on its establishment were only Socially from …. BSP submitted to Parliament in July this (the Bulgarian Socialist The 2009 unemployment rate is year. The first draft has been prepared Party) expected to be 5.5 per cent, Social by the Ministry of Labour and Social Minister Emilia Maslarova told journal- Policy and the Ministry of Finance, Social Minister Emilia Maslarova pre- ists. This year unemployment stood at and the other has been submitted by sented a package of striking measures 5.97 per cent, and in 2005 it was the Bulgarian New Democracy. Most to support “voters” from all age 11.11 per cent. The ministry is also probably, the draft of the ruling coali- groups as of the next year. She con- considering a ten-fold increase of tion (Bill on the State Fund firmed that 50 per cent of the budget fines for unscrupulous employers as Guaranteeing Sustainability of State surplus will be for the social sphere, of the next year. Pension System), which was prepared which also includes both education under the model of the pension fund and health care, and the funds will be Work on several labour exchanges has of Norway. spent in a completely transparent been started as well, aiming at helping way. bring back Bulgarians, who work Under the project, the payment of abroad. For example, studies were pensions from the Bulgarian Fund Despite this, the coalition still has no made among employers in Bulgaria should start ten years after the adop- consensus regarding the distribution and Bulgarians working in Spain on tion of the bill at earliest. During this of the accrued surplus. In the begin- how they will come back and work time, half of the proceeds for privati- ning of the year already, analysts fore- here. The summarized result from the zation, 25 per cent of the budget cast that the Government will dip into polls is not ready yet, however the surplus, proceeds from concessions its pockets before the elections for Social Ministry expects the labour and from other sources will be pensions and for the sensitive and exchange to be launched at the end accrued in it. It is planned its invest- always underfinanced sectors of health of October or the beginning of ments to be controlled by a manage- care and education. November. ment board, which will comprise the ministers of finance and labour and Besides the widely proclaimed aids for A similar project is being considered social policy, officials from both min- retired persons, an increase of the for the Bulgarians working in Greece. istries, representatives of employers, maternity leave from 315 to 410 days The team of the Social Ministry, of trade unions and the head of the is discussed. This means that mater- together with some other authorities, National Social Security Institute. The nity leave in Bulgaria will be twice is also developing a project on the process of investment itself will be longer that in the other EU member issuance of the so called “Green made through external consultants, states. Next year the child allowance Card” for citizens from Bulgarian ori- who will conclude contracts with the will be 35 leva instead of the current gin of countries, which are not EU Fund for management of an invest- 25 leva per month. Besides that, a bill member states. By means of this ment portfolio. The contract will point on crediting young families was being “Green Card” they will be able to work out the investment horizon, the class- developed as well. in Bulgaria. Such negotiations are cur- es and kinds of assets for investment 26 rently being carried out with Macedonia, and the maximum size of the admis- The ministry plans for the next year Ukraine, Moldova and Armenia, the sible loss. a guaranteed minimal income of 65 Social Ministry also said. leva, which will mean that the poor Its funds will be invested mainly in in Bulgaria will dispose of more than „Silver Pensions” … in shares, which should bring good return, 2 leva per day, instead of the 1.76 Future exceeding inflation. However, crisis leva, which is the fixed by the World such as the current one, would affect Bank poverty line per day, Maslarova Pensions in Bulgaria will not become seriously the achieved yield from AmCham Magazine Bulgaria October 2008 said. higher soon and would hardly be suf- investment. n

analysis Independence Day Dreaming By Boyko Vassilev

The two major private televisions in broadcast only by the national televi- tics has not been the hot passion of 28 Bulgaria waited impatiently for the sion. At the same time bTV and Nova Bulgarians for a long time. Who evening of Sep. 22, 2008. Apparently, Television re-started their own high remembers the 1990s, when politi- not because of the Bulgarian ratings reality programs – Dancing cians were more popular than pop Independence Day’s 100th anniversa- Stars and Big Brother. stars in Bulgaria? Now celebrities are ry and the ceremonial fireworks dis- singing, dancing, they enter every play in Veliko Turnovo, which were What was the audience’s choice? It is home, participate in reality shows, performed in the presence of the not difficult to guess. The fireworks while politicians are struggling to president, prime minister and parlia- display is an old ritual, which most catch the people’s attention by hook AmCham Magazine Bulgaria October 2008 ment’s chairman. That event was Bulgarians are fed up with, and poli- or by crook including singing of songs, analysis dancing and being involved in shows. historical evaluation of the “Bulgarian permanent. “Bulgarians admit they national concept.” He stated that are richer now. The biggest problem So far, so good. In the West, politics „Independence is a state of mind.” In is not the misery, but the has been in the periphery of people’s the evening, he showed at the fire- focus for a long time and we could works display in Veliko Turnovo. At absence of rules”, even say that it is a victim of its own the same time, his girlfriend made her success. The political elite in Sofia is debut as a participant in one of the said recently Ivan Krastev, a political not in this position yet. Here are the dancing couples in the Dancing Stars scientist. facts: In July Bulgaria received show. Displays also bad project culture - the most critical report The opposition was also keeping itself Bulgarians feel it extremely difficult to yet fit, if not with dances, but at least with write projects and there are even fights. Verbal aggression and its impa- some of them who think (encouraged from the European Commission in the tience to come into power has suc- obviously by some South European history of the European Union. Instead cessfully replaced the issue about its examples) that European money could of undertaking urgent measures and competence. The current political dis- be easily stolen. The frozen pre-ac- improving things, the government tries course in Bulgaria is going on as fol- cession funds (such as PHARE, ISPA to counter-attack the critics. Instead lows: Media: We have a problem! and SAPARD) are not the gravest of making concrete the accusations Opposition: Let’s topple the govern- problem. The big money is coming and point out the reasons, the opposi- ment! Government: And then? How with the cohesion funds and if Bulgaria tion tried to oust the government are you going to rule, you are good for won’t be able to absorb them properly, through a no-confidence vote and a nothing?” EU membership will be of little use. Day of Protest. August came and everybody went on vacation to the Is this of interest for you to listen to? And the mother of all problems: sea. Four times a day, during the three Bulgarians are blessed with inexpli- morning shows (unique Bulgarian cable pessimism in a combination The warnings of the pundits were in contribution to the political TV jour- with a lack of new vision for the coun- vain: „September comes after August. nalism), seven days a week? At least try. Think about September.” However, it Big Brother, Dancing Stars and was too early for both those in power Survivor promise some sex. If you ask politicians they will say: and for the opposition to think. „Ah, vision is available.” But if you Especially, when they were lying on Very few are those who made the ask them to formulate it, they will do the beach with the exception of a few effort to analyse the serious problems it with at least 20 sentences. And a Ataka radicals, who were standing in mentioned in the EC report. It is clear vision of 20 sentences simply does front of the Council of Ministers build- that Bulgaria… not exist. ing with a megaphone in hand and three tents behind them. September Has an inefficient administration - But you did not get discouraged, you came and the government suddenly Poorly paid, badly managed, consis- turned on your TV in the evening of forgot about the European report and tently criticized and therefore strongly Sep. 22, you sacrificed the dancing focused on the allocation of the bud- corrupt. If you say that this is a com- stars and the Big Brother participants get surplus. In turn, the opposition mon trait of every new democracy, I (in this case they were Big Brother forgot about the Day of Protest, prom- would argue that there is no country sisters) and you watched the fire ised meetings, demonstrations and like Bulgaria in the region – where works show on the National TV. You civil disobedience. Instead of this it career in the state sector brings so watched and waited for a hint: Where AmCham Bulgaria Magazine October 2008 October Bulgaria MagazineAmCham “fired” the government… with a peti- little money and prestige. is the Bulgarian vision? What is the tion. In the long run, the calendar new Bulgarian dream? reminds that the regular parliamentary Lacks people - In the years of transi- elections are to take place in the tion almost a million among the best At some point of the ceremony, the summer of 2009 and now only a mir- and youngest left the country. The 10-meter long standard, prepared acle or the disconnection of the cen- population now barely reaches 8 mil- especially for this case, got entangled tral heating could oust Sergei lion on a territory the size of South somewhere in the middle of the mast. Stanishev’s government. Korea’s (48 million). My second point Somebody was fussing around, but may well explain the first. could not remedy the things; the per- page And the young prime minister of son who had to take care of the flag 29 Bulgaria, anticipating already that he Projects bad coalition culture – Not had just been frozen with fear. What will fulfil his mandate to the last day, only by not respecting the coalition a blunder, you said and switched to remembered his first specialty – his- partners, but also in promoting cadres the brothers (sisters). And you see tory. He said that Sep. 22, the for the state apparatus, where people what? One of the participants in the Independence Day, is his personal develop according to party allegiance show, noisily advertized some sec- cause. He received a group of stu- rather than to their own merits. onds before that, fainted on the cat- dents to explain the state system to Political habits tolerate cronyism and walk. Worried, the host cried to take them. He published an address with a nepotism; corruption scandals are out her tongue from her mouth. In the analysis

long run she did not enter the house. the bill. In the country, which accord- Meanwhile governments are changed Gaffe here, and gaffe there. What is ing to Transparency International every year, and the political elite is happening? called „a corrupt cast,” which needs is leading Europe „Clean Hands“ operation all the time. Neither the show, nor politics, nor in corruption, Examples will accumulate as one (just between us) independence is heads south – both of corruption and hundred per cent certain. As quite a bribery is the most discussed subject political carelessness. lot of Bulgarians asked: “Why did we and the prison terms for graft are the mark in such a ceremonial way the shortest ones. This very country has Let me dream, however: Imagine how independence, which we won again 19 shown an Asiatic growth of economy I switch the TV to the one private years ago and lost two years ago? for 10 years so far, and for 10 years channels and see how models dance Could we say that Bulgaria is really its citizens have been claiming that with nuclear physicists. I press the independent in the EU? And, strictly they are the poorest and the most button of the remote control for the speaking, who is completely indepen- unhappy people in the world. The second program – and watch an IT dent nowadays - from states, funds, elite of this country is ready to sing, reality show, which invents a second- banks, exchanges?” Yes, the prime to dance, to enter houses, to solve generation Bulgarian computer. minister is right by saying that “inde- world puzzles, to ponder over the Unbelievably, I move to Veliko Turnovo pendence is state of mind.” However, question who will win the U.S. elec- on Bulgarian Independence Day – and most Bulgarians believe today that tions, Obama or McCain, rather than what? - I see an enthusiastic crowd they are independent only in that answer the questions, which the time greeting the political class of sense – that nothing depends on has put before Bulgaria. Bulgaria. them. Anyway, let us calm down and not “Wait, this cannot happen even in You did not pay your central heating make this text very sad. There are Sweden,” you will say… Let me dream. for years, and nobody could make you such places across the world even Have I not written that the fatherland pay. Or the opposite, you paid and the outside Bulgaria. See the Italians, for has no national dream? With all my central heating was cut at your home, example. People enjoy the Italian eco- love, I am presenting mine as a gift for because your neighbor had not paid nomic miracle, il miracolo italiano. the Independence Day. n

Prime Minister Stanishev speaks in front of the guests at the opening ceremony of an exhibition highlighting the 100 years anniversary of Bulgaria’s Declaration of Independence in New York city in the end of September. The exhibition is at Scandinavia House in New York. In his remarks in the packed Scandinavia House, Stanishev spoke about the the significance of the Independence Declaration in Bulgarian history and said he was sure it would always be commemo-

AmCham Magazine Bulgaria October 2008 rated wherever there are Bulgarians.

amcham events Public Affairs Committee Initiates Discussion on IPR Issues AmCham Public Affairs Committee had a meeting on Sep. 17 at the Radisson SAS Grand Hotel with Matthew Lamberti, intellectual property law enforcement coordinator - Eastern Europe at the U.S. Department of Justice.

Over 20 representatives of law and consultancy offices of AmCham Bulgaria, and professional associations participated in the discussion, which focused on the IPR enforcement in Bulgaria and the region, providing examples, challenges, trends in this area. Matthew Lamberti is a prosecutor, and has been working in Sofia for 10 months, covering the region of Eastern Europe. He is working closely with the Bulgaria’s Prosecutor’s office regarding copyrights products and trade marks protection. Mr. Lamberti elaborated on the issues with pirated CDs and DVDs, and the pirated downloading using bittorrents know

Matthew Lamberti, intellectual property law enforcement coordinator - Eastern Europe at the U.S. Department of Justice, and Ognian Kiriakov, general manager of Microsoft Bulgaria, continued the discussion on IPR issues after the meeting. how that is going on a large scale throughout Eastern Europe.

The companies actively participated in the follow up discussion. They agreed that the IP legislation in Bulgaria in general is good, but nevertheless has some gaps. The experts pointed out cybersquatting - registering, or using a domain name with bad faith intent to profit from the goodwill of a trademark 32 belonging to someone else - to be a serious issue. The companies talked on the importance of awareness building campaign and proper training of prosecutors and judges.

Kenneth Lefkowitz, committee’s chair, encouraged member companies to share in writing their main concerns with Representatives from Kamenitza AD, Goleminov & Goleminov, Rising Force/ Fender, DLA Piper, Djingov, Gouginski, Kyutchukov&Velichkov, Borislav AmCham’s office in order to develop a position paper of the Boyanov&Co, Dr. Emil Benatov&Partners, and others actively participated in the chamber and initiate negotiations with the Bulgarian authorities AmCham Magazine Bulgaria October 2008 discussion. on IPR issues. n

amcham events Six New Members of AmCham Join the Community

The Grand Hotel Sofia turned out to be the perfect venue for said. Corporate travel services include: hotel bookings and car the September edition of the AmCham Bulgaria New members rentals, traveler assistance, special services and packages, party. In a very pleasant atmosphere created during the func- travel management information. The company offers tours tion, six new members as of June and July were presented by packages that discover the natural, cultural and historical their managers: Bulgarian VIP Travel by Mr. Vladi Alexiev, CEO; wealth of Bulgaria. Cheque Dejeuner Bulgaria by Mr. Tchavdar Vaklev, General Director; Hild Asset Bulgaria by Mr. Vladimir Popov, Chief The international specialist on food vouchers with social des- Operations Officer; Pedersen and Partners Bulgaria by Mr. tination Cheque Dejeuner Bulgaria was launched in Bulgaria in Marco A. Bosman, Business Development Manager; RPI 2004, Tchavdar Vaklev, General Director said. He explained the Consulting by Mr. Petar Tashev, CEO; Winslow Developments benefits in joining the food vouchers system. There is 100% by Mr. Ivan Mekushin, Managing Director. exemption of taxes and contributions for up to 40 BGN per employee per month. The company offers insurance of the President Borislav Boyanov announced the party by giving the parcels with vouchers. Cheque Dejeuner is the only ISO certi- floor to the managers to introduce their companies. fied operator in Bulgaria and has the biggest chain of affiliates. 34 Around 100 AmCham members and guests joined the gather- ing to share contacts with the businesses at spot. Both HILD Bulgaria Ltd. and HILD Asset Bulgaria JSC are managed by Mrs. Diliana Georgieva, Executive Director for Bulgarian VIP Travel was established in 1992 as the first com- Bulgaria. HILD Group of companies has started their activity pany specializing in corporate travel in Bulgaria. The company more than two years ago in Hungary. Currently over 2000 has been an accredited IATA agent since 1994 and a share- Hungarian pensioners have contracts with HILD. It is also rep- holder in Radius® - the Global Travel Company since 2004, resented in Romania, Czech Republic and Poland. HILD in which is currently providing travel management services to Bulgaria has started its business activity in 2007. HILD offer is AmCham Magazine Bulgaria October 2008 more than 100 permanent corporate clients, Vladi Alexiev, CEO dedicated to people aged 65 plus, owners of apartment/house, amcham events

The international specialist on food vouchers with social destination Cheque Petar Tashev, CEO of RPI Consulting said that the company was created to Dejeuner Bulgaria was launched in Bulgaria in 2004, Tchavdar Vaklev, General respond to the ever increasing need of foreign investment, doing business and Director said at the meeting. living in Bulgaria.

During raffle prizes Mr. Vladimir Popov, Chief Operations Officer of HILD Bulgarian VIP Travel was established in 1992 as the first company specializing Bulgaria Ltd. awarded the lucky winners. in corporate travel in Bulgaria, Vladi Alexiev, CEO said.

Pedersen & Partners is an executive search firm advising on the recruitment of top and middle management in Central and Eastern Europe, Mr. Marco A. Mr. Ivan Mekushin, Managing Director of Winslow Developments Ltd. draws Bosman (left), Business Development Manager explained. the lucky name cards for the raffle prizes. AmCham Bulgaria Magazine October 2008 October Bulgaria MagazineAmCham currently in Sofia and Sofia’s suburbs. In exchange of title RPI Consulting was created to respond to the ever increas- transfer our clients are entitled to the following: personal finan- ing need of foreign investment, corporate relocation, manu- cial offer with parameters based on the age of the client and facturing, doing business and living in Bulgaria and Central the market value of the real estate; life-long usage right for the and Eastern Europe, Petar Tashev, CEO explained. The house; HILD club membership. company structure consists of business and investments departments, legal department, and European funding Pedersen & Partners is an executive search firm advising on department. Among the services the firm offers are: invest- the recruitment of top and middle management in Central and ment solutions and evaluations of investment projects, fund- Eastern Europe. It operates 33 wholly owned offices, Mr. ing resources plans and strategies development, market page Marco A. Bosman, Business Development Manager said. The analysis. 35 company makes a search plan by defining business needs and search context – role and candidate profile description. Winslow Developments Ltd. is a real estate investment and The identification and assessment is made via direct search development company, established 2001, Mr. Ivan Mekushin, based on recommendations, database search, and internet Managing Director said. The company has offices in Sofia, and other candidate sources. The integration of internal can- Bansko and in London. The company’s strategic goal is to didates is made via telephone interviews, consultant interviews become one of the leaders in the development and implemen- and progress reports. In the end the company ensures proper tation of real estate investment projects: in both the residential start, makes follow up consultation, and continuing obligation. and the commercial real estate market in Bulgaria. n member news

Thousands March To Raise Breast Cancer Awareness point of the route, each participant was given a present – a message, which was posted on the company’s website.

In front of the National Palace of Culture a concert took place. This year partners of the campaign were Coca Cola and Burger Sofia – they provided free drinks and sandwiches for everybody. The youngest friends of the campaign had a special corner where they colored pink ribbons.

“Thanks to Avon’s campaign From Love to Life and everybody’s efforts, the lifesaving preventive examinations become more and more accessible to women. Let our efforts help more Some 3,200 Bulgarians took part in Avon’s charity initiative families be happy together. When we are united, we can From Love to Life, which was also supported by 15 of the most achieve a lot”, said Vladimir Borachev, general manager of celebrated Bulgarian actors, singers and sports stars. Avon Bulgaria, Albania and Macedonian, said. He also pointed out that From Love to Life is a global long-term initiative of the The event began with a charity concert and bazaar, and then cosmetic company. for a third year took an already traditional 5-km route. On the way, thousands of pink balloons were let loose in the air as a As a token of appreciation of the active part people took in symbol of the thousands of women who received help thanks the campaign, Avon Bulgaria announced they will donate 3,200 to the campaign From Love to Life. Before reaching the final additional preventive exams to women in need in Sofia. n Postbank To Award 108 Outstanding Students With 54,000 Leva In Prizes Anthony Hassiotis, CEO of Postbank, bestowed awards to 44 student winners in High Start with Postbank program. The students received diplomas and checks worth 500 Leva each in the presence of Postbank’s top management, Kircho Atanasov, deputy minister of education, Vanya Kastreva, head of the Inspectorate on Education in Sofia, directors, teachers and parents.

“As a CEO of Postbank and as a father, I am particularly proud that we were the Anthony Hassiotis, CEO of Postbank poses in front of media with the students from the High Start program. first financial institution to invest funds and energy in secondary education in As you already know, the EU defined awarding ceremonies will be also held in Bulgaria and I am happy that this pro- eight key competences of the European Plovdiv, Varna and Montana. gram has evolved into a good tradition. citizen, and the second of these skills is This is not just something we do locally precisely the knowledge of foreign lan- Each year, the High Start with Postbank - supporting education is a main priority guages. Lately, public-private partner- program is carried out under the aus- in the corporate social responsibility strat- ship in the sphere of education is quite pices of the Ministry of Education and 36 egy of our parent Eurobank EFG Group,” frequently mentioned and it has already Science. Rankings of students are said Hassiotis in his welcome speech. been happening in Postbank for four based on the scores on the centralized years now.” external foreign language examination Deputy Minister Atanasov expressed his for eight grade students from the spe- gratitude to Postbank for the progressive The total prize fund of the 2008 High cialized foreign language schools, orga- initiative of the financial institution. “The Start program is 54,000 Leva. This year nized by the Ministry of Education. So High Start with Postbank programme the financial institution will reward 108 far, under this program Postbank has has been well ahead of the recent students from 17 Bulgarian cities. After rewarded more than 500 students with a AmCham Magazine Bulgaria October 2008 trends in Bulgaria as well as in the EU. the ceremony in Sofia, Postbank’s total amount of 221,000 Leva. n

member news

Searching for Leaders Industry specialization and local expertise help professional headhunters identify the right talents, says Darina Peneva, managing partner of Stanton Chase Sofia

- What are the current trends on the experience would fit a certain working market for senior-level positions in environment? Bulgaria? Based on your experience, what specifics have you noticed over - This is a crucial moment in the pro- the last few years? cess of executive search. Stanton Chase’s approach is very simple – it is - I have been working on the Bulgarian based on several key milestones. We recruitment and executive search market rely on the following principles: excellent for many years now but it is the last two understanding of our clients’ organiza- years that I can describe as the most tions in terms of business models, spe- challenging and dynamic in our industry. cific functions, organizational structure; The main reasons are the stable growth solid methodology and tools for compe- of the Bulgarian economy and the fact tence assessment; industry specializa- that foreign players are interested in tion of our consultants and researchers; investing in Bulgaria. These circumstanc- Darina Peneva is a managing part- and, last but not least, the passion of a es determined the strong need for quali- ner of Stanton Chase Sofia, local determined, ambitious and dedicated fied and talented managers able to lead office of Stanton Chase International team. We are fully able to evaluate not companies successfully in a constantly – one of the world’s Top 10 execu- only individual’s competences, but also changing, unpredictable and very com- tive search firms. Peneva joined the so called person-organization fit. petitive environment. Bulgaria is an Stanton Chase Sofia in the begin- Our approach requires being in constant emerging market so companies are able ning of 2006 and played a key role contact with the decision-makers, as to achieve double digit growth. This in the start-up activities of the busi- well as visiting the client’s premises so attracts foreign investors despite the fact ness, as well as in establishing a as to get a better understanding of the that in terms of population the market is local core team. Currently, she is working pace and the spirit, culture, small. Having all this in mind, we can say also head of the Finance Services values and management styles of the that leadership skills and competences and Life Science and Health Care company. are highly appreciated and demanded at Practice Groups. She has gained both top and middle management level. considerable experience in execu- - In your opinion, how will headhunting tive search, recruitment, selection, services develop in Bulgaria? How is - What are the main motives behind competence assessment, training, executive search positioned here and the demand for the services of compa- development and management. She what is the place it will occupy in the nies like Stanton Chase International? is a part-time lecturer in Human near future? What are the benefits and the added Resources Management for MBA value for the clients? students in the Human Resources - Executive search is a relatively new Management Program at NBU, service to our market and my experience - By definition companies need compe- Sofia. Peneva holds an MBA degree shows that demand has been constantly tent and professional help from a trusted in General Management. increasing for the last few years. As partner who can identify their business members of a global executive search leaders of today and tomorrow – leaders and the reasons to act in a certain way, group of companies with high standards of proven managerial skills, able to lead but I never thought that one day these and advanced know-how we also face the organization and to use all market inclinations would become part of my the challenging role to educate the mar- opportunities. Our experience shows that profession. Our job is very demanding ket regarding what they should expect clients also expect to receive additional and delicate, but also very rewarding as and require from a head-hunter. The fact information regarding industry trends, it gives me the opportunity to communi- that several big international executives their image as an employer, the factors cate with high-caliber people from differ- search companies have already estab- that motivate people from their industry ent industries and nationalities. I am glad lished their offices in Bulgaria is a signal 38 to consider a career change, etc. to have the chance to learn from both of market growth and the presence respected Bulgarian and foreign manag- of favourable conditions for further devel- - What were the main reasons for your ers – both clients and candidates. I have opment of the industry. My opinion is that choice of a career in human resource been in this industry for more than 12 in the next 3-4 years the demand for consulting and especially in executive years now and I am still excited about my executive search will increase and that search services? job. the market will be rewarding only for those executive search companies that - Even in high school I found it interesting - How do you decide whether a spe- bring high-quality, time-bound profession- AmCham Magazine Bulgaria October 2008 to observe and analyze people’s behavior cific expert with senior management al service to their clients. n amcham events AmCham Bulgaria Magazine October 2008 October Bulgaria MagazineAmCham

page 39 new members

HelmsBriscoe is the world’s larg- peculiarities - anything that may affect your program. est venue-finding agency with over 1000 offices in 40 countries. We Time Saving - Explain your program needs to one person, provide a free-of-charge service based locally in Bulgaria, who, on your behalf, searches for to assist you to find hotels and the best options, fields questions and responses, gathers venues for your meetings, conven- appropriate detail and presents information to you in a clear tions and events. Our clients get and concise format. the immediate benefit of: Contacts: Purchasing Power – We book more than 3.3 million hotel Mr. Howard Cohen, Director Central and Eastern Europe room nights and over 16000 programs per year. We are the Tel.: +359 887 602361 top producer of group revenue worldwide for most of the Dessislava Petrova, Sales Manager major hotel chains. E-mail: [email protected] Address: 22, Zhivko Nikolov Str. Global Knowledge – Our internal hotel databases have access 1505 Sofia to critical “insider” information on hotels, service standards, Bulgaria

international practice groups, and our practice group professionals understand our clients’ needs, bring updated industry knowledge and a deep candidate network.

Pedersen & Partners was founded 1st January 2001 by a Our goal is to develop cross-regional partnerships with our team of experienced executive search consultants and from clients exemplifies our values of Trust-Relationship- the very beginning we have been fully concentrated only on Professionalism. We have a well-established history and are executive search. trusted advisors to our clients.

Today we are a truly international firm operating 33 wholly Contact information: owned offices in 32 countries (Sofia office was established Marco Bosman in 2005), which enables us to stay in close touch with the Business Development Manager candidate pool and to provide real guidance on cultural 1000 Sofia, Bulgaria issues across the markets where we operate. Tel.: +359 2 986 0550 Fax: +359 2 986 0551 Pedersen & Partners combines its country organisation with [email protected]

Winslow Developments is a real estate area, including the construction of residential com- Bulgarian company with plexes and administrative and office buildings. Winslow English participation. The Developments invests in agricultural land and production of company invests and manag- agricultural products too. The company owns more than 15 es real estate projects in 000 decares of agricultural land and is planning to increase Bulgaria from the year 2001 its land fund by 30 000 decares till the end of the year and has offices in Sofia, 2008. London and Bansko. The total amount of investments in the projects it takes part in at present and plans to further par- Contact information: 40 ticipate in, shall surpass 600 million Euros. Winslow 83 Gueshevo Str., Developments has established a joint venture with RREEF Sofia 1330 – the real estate investment fund of Deutsche Bank AG Serdika Business Centre, Sofia 1330 aiming to accomplish a couple of large-scale construction Tel: +359 2 920 41 12; 920 41 13 projects in Bulgaria. Fax:+359 2 920 17 82 e-mail: [email protected] The company designs and implements investment projects in www.winslow.bg AmCham Magazine Bulgaria October 2008