The Stability Pact for Southeastern Europe (SPSE) initiated negotiations among eight Balkan countries including Moldova and Kosovo on establishing a free trade zone on the Balkans, Bulgarian National Radio (BNR) said.

The negotiations were to be concluded by October 20 2006, BNR said.

Albania, Bosnia and Herzegovina, Bulgaria, Romania, Montenegro, Serbia, Croatia, Macedonia, Moldova and Kosovo would form the free trade zone.

BNR quoted Stability Pact representatives as saying that the contract for the trade zone was “99 per cent” ready. Bosnia and Herzegovina, Serbia, Croatia and Montenegro were to settle some problem areas between them, the representatives said.

Still, the Stability Pact hoped that negotiations would be concluded by October 20 2006. If any problem occurred, the agreement could be signed by only some of the countries, BNR said. The other countries could sign the agreement next year.