site.btaEconomy Minister Argues that Privatization of Ordnance Plants Not Appropriate

Economy Minister Argues that Privatization of Ordnance Plants Not Appropriate

Sofia, March25 (BTA) - Economy Minister Bozhidar Loukarski said during Question Time in Parliament on Friday that the time is not right for the privatization of ordnance plants such as VMZ-Sopot and Kintex, which he said are "undergoing development, provide jobs, generate added value and aid the overall economic and social development". Loukarski also urged for a review of the list of companies whose privatization is banned. He said that Parliament may decide whereby some of the companies on the list are sold in the future.

Loukarski also said that he was lobbying for the formulation of a mechanism under which privatization could be used as an instrument for re-industrialization, by allocating a portion of the privatization proceeds as new investments in the economy.

The Economy Minister also said that according to preliminary data of the central bank, direct foreign investment (FDI) in Bulgaria in January-December 2015 totalled 1.593 billion euro, or 24 per cent higher than in January-December 2104. This is also the highest volume of FDI since 2012. The Finance Ministry expects 2016 FDI to reach 3.2 per cent of the Gross Domestic Product, and grow by 1.5 per cent, Loukarski said.