Bulgaria is a quiet, and largely rural country in
SE European about the size of England but with a population
of only around 8 million. For years Bulgaria has been
a favoured holiday destination for Eastern Europeans,
but only in recent years has it opened its doors to
the rest of the world. Its mountains, beaches and
old-fashioned rural tranquility offer a glimpse of
Europe which has long since disappeared under the
noise of traffic and concrete in western Europe.Since
the introduction of the currency board in 1997 Bulgaria
has been politically stable country with a developing
economy and the preferential conditions and guarantees
for foreign investors have generated excellent business
opportunities and investment growth potential. Bulgaria
real estate prices are by far lower than other destinations
in Europe but the estimated acceptance of Bulgaria
in the European Union provides unprecedented growth
potential that will certainly boost the prices of
the Bulgaria real estate in the near future. Bulgarian
market or real estate is still unexplored and undeveloped
to a certain extent, which makes it very attractive
and profitable.Further Bulgaria was invited to become
a NATO member targeted for 2004 and full EC membership
is scheduled for 2007. Now is the right time to invest
in property in Bulgaria.Bulgaria is a politically
stable country, and the introduction of a currency
board in 1997 stabilised the country's economy. Reaching
year of 2007, Bulgarian laws are improving and changing
in accordance with the laws in the countries of the
European Union. Bulgaria has one of the most liberal
foreign investment laws in the region. Foreign investment
typically assumes one of the following forms: establishing
a joint venture with existing companies, state-owned
or private; acquiring a company through privatization;
setting up a new (green field) venture; or making
a portfolio investment. One of the poorest countries
of central Europe, Bulgaria has slowly been moving
from its old command economy towards a market-oriented
economy. The economy faced a major crisis in 1996,
marked by a banking system in turmoil, a depreciating
currency, and contracting production and foreign trade.
Foreign exchange reserves dwindled to $518 million,
while dramatically hiked interest rates added to the
domestic debt burden and stifled growth. GDP fell
by 11% in 1996, after experiencing 2.0% growth in
1995. Privatization of state-owned industries stagnated,
although the first auction of a mass privatization
program was undertaken in late 1996. Lagging progress
on structural reforms led to postponement of IMF disbursements
under a $580 million standby loan agreed to in July
1996.
In November 1996, the IMF proposed a currency board
as Bulgaria's best chance to restore confidence in
the lev, eliminate unnecessary spending, and avoid
hyperinflation. The board was set up on 1 July 1997.
Its establishment was followed by a reduction in inflation
and interest rates and by a rise in foreign investment.
Simultaneously the government pledged to sell off
some of the most attractive state assets.
GDP in 1997 dropped 7.4%, but is expected to rebound
to an estimated 2% in 1998. Other government objectives
include: the completion of land reform, the privatization
and strengthening of the banking system, and the modernization
of the legal environment of business.
Government type: emerging democracy
Country name:
conventional long form: Republic of Bulgaria
conventional short form: Bulgaria
Data code: BU
Government type: republic
Administrative divisions: 9 provinces (oblasti,
singular—oblast); Burgas, Grad Sofia, Khaskovo,
Lovech, Montana, Plovdiv, Ruse, Sofia, Varna
Independence: 22 September 1908 (from Ottoman
Empire)
National holiday: Independence Day, 3 March
(1878)
Constitution: adopted 12 July 1991
Legal system: civil law and criminal law based
on Roman law; accepts compulsory ICJ jurisdiction
Suffrage: 18 years of age; universal
