issue 89 may 2008 Analysis: Higher Interest Rates Surprise Bank Clients Real Estate Market is Moving Forward Despite the Setbacks Sector Overview: Healthcare, Pharmacy, Medical Equipment TheThe CabinetCabinet RedecorationRedecoration 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 Reader, As a rule, I try to avoid company functions, corporate celebrations and public anniversaries. I am not particularly enamored with the idea of standing in a crowd balancing a glass with the 'wine of the moment' in one hand and a 25- cent-sized bite of salmon on rye bread. Of course, I have little choice in this matter, because I have to be seen at such occasions often. At the end of April, I was invited to the 17th anniversary of 24 Hours daily, since I spent six years in this newspaper, starting with its founding in 1991. The cele- bration was held on the same day the parliament voted for the changes in the Stanishev Cabinet. You would be amazed to know how strong was the repre- sentation by high-level government officials at the cocktail. The president with the first lady, the prime minister himself, ministers, leaders of parliamentary groups, regular MPs attended the party. The notable exception, naturally, was Roumen Petkov, the now ex-minister of the interior, who will not be seen much in public for a while. Larger news organizations, such as 24 Hours, Trud, bTV, BNT, Nova TV, by default enjoy the attention of senior government officials. Parvanov, Stanishev and the rest usually find the time to attend most parties given by these publications and broadcast networks. But on April 24, 2008, the 24 Hours premises resembled a parliament more than news offices. Ministers and MPs outnumbered journalists. You would ask, Why? Well, for starters, the fire of the latest political scandals and the related government shuffle was stoked by the media to a large degree. Politicians were reminded during the last month or so of the almost forgotten power of newspapers and broadcast stations to fail governments, change presidents and fire generals. In the "Ministry of the Interior scandal," Bulgarian media played a pivotal role. They were helped by those politi- cians, who were so kind - and conscientious - as to provide the journalists the documents and secret minutes, revealeding the disgrace at higher levels of power. If the media have not taken this matter to heart, they would not have spent tons of ink and hours of air time exposing the problems at the ministry, including contacts with organized crime and incompetence. This avalanche of reporting eventually led to the reaction by Prime Minister Stanishev and his political allies. He could have gotten away easily, and Bulgaria could have continued making a bad impression in Brussels and 2008 May Magazine AmCham Bulgaria Washington with its rampant mafia, corruption and other problems. We could have lost even more of the already undermined EU trust with respect to the (mis)use of Euro-funds. We could have even become the first ever coun- try to lose its hard-earned membership card. With the government shuffle and agreements among Stanishev, Saxe-Coburg-Gotha and Dogan, such undesirable developments became a not-so-immediate possibility. It seems almost certain now that this Cabinet and the tri- partite coalition will reach the end of the parliamentary mandate, which at least provides stability and better busi- ness environment in Bulgaria. page 1 The new ministers will need about two-three months to get acclimated. Then comes the summer break for the parliament… then it is Christmas… then get ready for the regular elections, to be held next year. Until then, you can bet that Bulgaria's top politicians will attend all media events diligently, because they saw the power of news media in action. Milen Marchev Editor-in-Chief contents issue 89 may 2008 AmCham Bulgaria Magazine is a primary forum for political and economic analyses, news, viewpoints as well as for the presentation of new business oppor- tunities. 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 internation- al 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. iF YOUR AD WERE pLACED HERE, AMCHAM ADVERTISING RATES BACK COVER ....................1330 BGN YOUR MESSAGE SECOND COVER ................1220 BGN THIRD COVER ..................1180 BGN • WOULD BE CONVEYED TO THE LEADING US, INTERNATIONAL AND TWO PAGES SPREAD ............1440 BGN BULGARIAN COMPANIES OPERATING WITHIN BULGARIA; FULL PAGE ........................960 BGN HALF PAGE ........................780 BGN • WOULD REACH THE DESKS OF SENIOR EXECUTIVES AND DECISION-MAKERS QUARTER PAGE ....................580 BGN WHODEMANDHIGHQUALITYPRODUCTSANDSERVICES; LOGO ..............................350 BGN INSERT ............................840 BGN • WOULD TRAVEL ACROSS THE EUROPEAN CONTINENT AS WELL AS THE UNITED STATES, TAKING FULL ADVANTAGE OF THE INTERNATIONAL NET- DISCOUNTS: WORK OF AMERICAN CHAMBERS OF COMMERCE; 2 AMCHAM MEMBERS ..................20% • WOULD SERVE AS AN IDEAL NETWORKING OPPORTUNITY FOR POTENTIAL ADVERTISING AGENCIES ..............15% FOREIGN INVESTORS AND BUSINESSMEN VISITING BULGARIA. MAX VOLUME DISCOUNT ............10% THE RIGHT MESSAGE TO THE RIGHT AUDIENCE. 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] AmCham Bulgaria Magazine May 2008 May Magazine AmCham Bulgaria 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 Contents Vice President Mr. Kenneth M. Lefkowitz New Europe Corporate Advisory Treasurer Tanya Kosseva-Boshova Landmark Property Bulgaria cover story Cabinet Changes: The Mountain Members Ms. Olga Borissova Ellief Center, AUBG Gave Birth to a Mouse . .4 Mr. George Georgiev Motorola Bulgaria Mr. Thomas Higgins Balkan Accession Fund In and Out . .12 Mr. Andon Ichev General Electric Mr. Stefan Ivanov Citibank N.A. By Boyko Vassilev Ms. Dana Leff AbCRO Bulgaria Mr. Chris Thompson Consultant sector overview Ms. Elitsa Tsaneva Ideal Standard Bulgaria Financing Healthcare Services . .14 Ex-Officio Member Mr. James Rigassio US Senior Commercial Attache Bulgaria Lags Behind Its Neighbors Executive Director Valentin Georgiev in Healthcare Investment . .16 By Irina Bacheva 3M (East) AG . AA KRES EOOD . ABB Bulgaria EOOD . Abbott Laboratories S.A. AbCRO - Bulgaria . 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 Medical Equipment Market Development Trends . .18 EAD . AIG Life Bulgaria . AIMS Human Capital . Alcoa Packaging Bulgaria . Alexander Hughes Bulgaria OOD . ALEXANDROV GROUP CORPORATION . Alfred C.Toepfer International . Alliance One Tobacco Orphan Drugs Explained . .20 Bulgaria . Allied Pickfords Bulgaria . Alter Ego Company OOD . American College of Sofia . American 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 Pharmaceutical manufacturers: Commerce . Ashtrom International Ltd. Association Integra-BDS . Astra Zeneca UK Ltd. Astral Holidays AD . AT Engineering 2000 Ltd. Auditing Company Versi and Partners Ltd. AVON Cosmetics Bulgaria Ltd. Bulgarian Drugs Cheaper than Rest of EU, . BAE Systems International Ltd. Balkan Accession Fund . Balkan News Corporation Plc. Balkan Star Costs for Patients Higher . .21 Automotive EOOD . Baxter AG . Bayer Bulgaria EOOD . BC Serdon . Berlitz Schools of Languages . 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 finance EAD . Bulgarian American Enterprise Fund . Bulgarian Charities Aid Foundation (BCAF) . Bulgarian Land Development EAD . Bulgarian Telecommunications Company AD . Business Media Group . Business Park Higher Interest Rates Surprise Bank Clients . .22 Sofia EOOD . CallPoint New Europe AD . Candole Partners EOOD . Car Rental Bulgaria Ltd. Carlsberg By Mina Georgieva Bulgaria AD . Cefin Bulgaria EOOD (IVECO dealer) . Center for the Study of Democracy . CENTURY 21 Bulgaria . Chelopech Mining