If the government continues to implement its reform program, the World Bank (WB) will continue to financially support the country. That was the major, though very general, conclusion made after a series of meetings last Thursday between WB country director for Bulgaria Andrew Vorkink and government officials.
“If the new government continues the program of reforms, which Bulgaria started, and I am absolutely sure that it will do so, the bank’s intention is to release the maximum financing for your country in the next three years, up to $750 million,” announced Vorkink. He and some of the cabinet ministers discussed the WB’s proposed Country Assistance Strategy for the next three years.
“There is a lot of overlapping in the views of the bank and the cabinet in the priorities and challenges facing Bulgaria. Our view is their view,” said Vorkink. The World Bank official said that the new Bulgarian government faces a number of key tasks that need to be resolved. They include completion of the privatization process, completion of reforms in the energy sector, improvement of the business climate in order to attract more foreign investment, support for small and medium-sized businesses to create more jobs, and the preparation and implementation of programs against corruption and to solve social problems, including those of the ethnic communities.
The World Bank will continue to provide loans to Bulgaria, grant-aid, and technical assistance and consultancy in the form of various studies and reports it has developed. Vorkink said he was encouraged by the talks he had held with the new Bulgarian cabinet, especially with the ministers’ willingness to accelerate reform in the next few years.
The cabinet has asked the World Bank to increase funding in order to support Bulgaria’s balance of payments at the expense of investment projects, said Economy Minister Nikolai Vassilev. “Within the $750 million which the bank can extend to Bulgaria in the course of the next three years, we will request it to increase structural loans in support of the balance of payments and reduce money for the funding of investment projects,” said Vassilev.
He and Vorkink discussed the Bank’s strategy for Bulgaria in 2002-2004. Vassilev familiarized Vorkink with the reform program of the cabinet’s economic team.
In an hour and a half meeting, Finance Minister Milen Velchev and Vorkink discussed the World Bank’s Country Assistance Strategy for Bulgaria in the next three years. Within a few weeks the WB will send teams of experts who will focus on spending in the executive budget and local budgets, announced Vorkink. Another team will consider the opportunities of expansion for what was meant to be the FESAL-3 loan, the first program loan to Bulgaria. The Bank will send another group of experts to discuss further reform in the energy sector.
On Thursday Andrew Vorkink and Social Minister Lidia Shuleva signed an agreement for a $370,000 grant that was floated by the Japan Social Development Fund (JSDF). The money will go to the poorest municipalities in Bulgaria, which have difficulties in getting financial assistance from other sources. The funds will be used mainly for small municipal pilot projects.
The municipalities will be awarded grants on a competitive basis. The proposed pilot projects will de drafted by local organizations and will aim at creating jobs and increasing the incomes of the socially disadvantaged (Roma, physically-disabled persons, poor families with more than two children, etc.).
The new World Bank resident representative in Sofia was presented to ministers and the media. Oscar de Bruyn Kops replaces Thomas O’Brien. His appointment becomes effective on October 1.
Dutchman Oscar de Bruyn Kops has worked for the World Bank for over 20 years. Before that he was a UNDP expert. The new resident representative has comprehensive knowledge of Eastern European economies. He has worked in several countries in the region, including Bulgaria. In Bulgaria he was in charge of the first review of reform in the industrial sector, the program for reform of state enterprises and development of the private sector.
“If the new government continues the program of reforms, which Bulgaria started, and I am absolutely sure that it will do so, the bank’s intention is to release the maximum financing for your country in the next three years, up to $750 million,” announced Vorkink. He and some of the cabinet ministers discussed the WB’s proposed Country Assistance Strategy for the next three years.
“There is a lot of overlapping in the views of the bank and the cabinet in the priorities and challenges facing Bulgaria. Our view is their view,” said Vorkink. The World Bank official said that the new Bulgarian government faces a number of key tasks that need to be resolved. They include completion of the privatization process, completion of reforms in the energy sector, improvement of the business climate in order to attract more foreign investment, support for small and medium-sized businesses to create more jobs, and the preparation and implementation of programs against corruption and to solve social problems, including those of the ethnic communities.
The World Bank will continue to provide loans to Bulgaria, grant-aid, and technical assistance and consultancy in the form of various studies and reports it has developed. Vorkink said he was encouraged by the talks he had held with the new Bulgarian cabinet, especially with the ministers’ willingness to accelerate reform in the next few years.
The cabinet has asked the World Bank to increase funding in order to support Bulgaria’s balance of payments at the expense of investment projects, said Economy Minister Nikolai Vassilev. “Within the $750 million which the bank can extend to Bulgaria in the course of the next three years, we will request it to increase structural loans in support of the balance of payments and reduce money for the funding of investment projects,” said Vassilev.
He and Vorkink discussed the Bank’s strategy for Bulgaria in 2002-2004. Vassilev familiarized Vorkink with the reform program of the cabinet’s economic team.
In an hour and a half meeting, Finance Minister Milen Velchev and Vorkink discussed the World Bank’s Country Assistance Strategy for Bulgaria in the next three years. Within a few weeks the WB will send teams of experts who will focus on spending in the executive budget and local budgets, announced Vorkink. Another team will consider the opportunities of expansion for what was meant to be the FESAL-3 loan, the first program loan to Bulgaria. The Bank will send another group of experts to discuss further reform in the energy sector.
On Thursday Andrew Vorkink and Social Minister Lidia Shuleva signed an agreement for a $370,000 grant that was floated by the Japan Social Development Fund (JSDF). The money will go to the poorest municipalities in Bulgaria, which have difficulties in getting financial assistance from other sources. The funds will be used mainly for small municipal pilot projects.
The municipalities will be awarded grants on a competitive basis. The proposed pilot projects will de drafted by local organizations and will aim at creating jobs and increasing the incomes of the socially disadvantaged (Roma, physically-disabled persons, poor families with more than two children, etc.).
The new World Bank resident representative in Sofia was presented to ministers and the media. Oscar de Bruyn Kops replaces Thomas O’Brien. His appointment becomes effective on October 1.
Dutchman Oscar de Bruyn Kops has worked for the World Bank for over 20 years. Before that he was a UNDP expert. The new resident representative has comprehensive knowledge of Eastern European economies. He has worked in several countries in the region, including Bulgaria. In Bulgaria he was in charge of the first review of reform in the industrial sector, the program for reform of state enterprises and development of the private sector.
