| Nikolay Vassilev: deputy |
ON THE POSITIVE side, the sale of DSK Bank to Hungarian bank OTP for e311 million means that the entire Bulgarian banking sector is in private hands and more than 80% of shares are owned by foreign investors. The government has also said it is committed to breaking up and selling off its electricity distribution sector in seven companies by the end of the year.
Prospects are, however, much worse for the sales of telecom operator Bulgarian Telecommunications Company (BTC), and the tobacco monopoly Bulgartabac. These sales, which have suffered setbacks and delays, are now mired in Bulgaria's highly politicized courts or facing vetoes by political vested interests.
Bulgaria's government has a lot riding on the successful completion of these sales. The IMF, which has praised the government's overall economic management, is nonetheless pressing for further structural changes. The ratings agencies, which have been steadily upgrading Bulgaria's long-term foreign currency rating, regard more privatization as a prerequisite of further upgrades. The debt markets are starting to wonder whether the external financing framework needs to be reassessed.