site.btaEconomy Minister: Bulgaria is Ready to Turn New Page in Economic Relations with Cuba

Economy Minister: Bulgaria is Ready to Turn New Page in Economic Relations with Cuba

Havana, November 5 (BTA) - Bulgaria is ready to turn a new page
in the economic relations with Cuba, which were interrupted in
the last years, said Economy Minister Bozhidar Loukarski after
his meetings with Cuba's Minister of Foreign Trade and
Investment Rodrigo Malmierca Diaz and Minister of Industry
Salvador Pardo Cruz, the Economy Ministry reported Thursday.

Minister Loukarski is paying a working visit to Cuba together
with a Bulgarian business delegation including  Deputy Economy
Minister Lyuben Petrov and Executive Director of the Bulgarian
Small and Medium Enterprises Promotion Agency (BSMEPA), Marieta
Zaharieva.

This is the first visit on ministerial level since the long
interruption of the bilateral economic contacts and after the
restoration of the diplomatic relations between Cuba and the US.
 

Loukarski recalled that Bulgaria and Cuba have traditionally
good friendly ties, and many Bulgarian experts have participated
 in the building of the Cuban economy. The two countries
recently marked 55 years since the establishment of the
diplomatic relations between them.

Rodrigo Malmierca Diaz acquainted the Bulgarian Economy Minister
 with the plan for changes that Cuba is undertaking so as to
make the country's economic model more effective. He explained
that the government in Havana wants to achieve an economic
growth of 6 to 7 per cent, which requires around 2 billion of
investments a year. In his words, this is not easy in the
conditions of ongoing economic embargo by the US.

The Foreign Trade and Investment Minister went on to say that
after US President Barack Obama and Cuban President Raul Castro
announced the opportunity to restore the bilateral economic
relations and lift the blockade, there is still a long way ahead
 until this intention become reality. In the meantime, Cuba is
trying to make its economy more attractive to foreign
investments from other countries so that it does not become
dependent on a single partner once again. Rodrigo Malmierca Diaz
 noted the leading role of EU Member States in this process and
underscored that in 2014 alone, Cuba had high-level visits from
Spain, Italy, France, the Netherlands, Germany,  and Hungary. He
 said that Cuba can serve as Bulgaria's bridge to Latin America.
 

At his meeting with Loukarski, the Cuban Minister of Industry
said that his country is in the process of restoring its
industrial capacity. The extraction of non-ferrous metals is
being revived, large-scale investments are under way in the
production  of home appliances, renewable energy sources,
packaging materials, trade in shoes, agricultural produce,
polygraphy, sanitary materials, batteries, steel products, car
tyres, aluminium boxes, air conditioning installations, and
glass industry products. Joint ventures can be created in these
spheres, he noted. Also presented at the meeting were the
opportunities for a new economic zone - "Mariel" - in Cuba.

During his visit to Cuba, Deputy Economy Minister Petrov
attended a meeting between Bulgarian company Bulgargeomin and
Cuban company GeoMinera, during which it transpired that
Bulgargeomin is at an advanced stage of initiating the
extraction and dressing of copper ore in Cuba.

The ore deposit will be developed with the assistance of
Bulgarian technologists and is expected to start working in
spring 2016.

As part of their visit to Cuba, Loukarski, Petrov and BSMEPA
Executive Director Zaharieva also took part  in the marking of
Europe Day  at the Havana International Fair, which was visited
by 11 Bulgarian SMEs.

Bulgarian companies want state guarantees when they work with
partners in Cuba, the Economy Ministry also reported. This is
what Marieta Zaharieva, Executive Director of the Bulgarian
Small and Medium Enterprises Promotion Agency, said after
meetings with Cuba's Minister of Foreign Trade and Investment
and the Minister of Industry.

Zaharieva explained that the Bulgarian companies insist on state
 guarantees, which Cuba in principle issues to foreign companies
 and investors. The reason for this request is that Cuban
companies delay payments for up to 720 days, which creates
difficulties for the business. Bulgarian companies even complain
 of losing resources sometimes, she added.

Cuba is open to all kinds of investments and business, joint
enterprises can also be established, Zaharieva noted. The State
promotes investments also through lower taxes. For example, the
entry in an industrial zone frees a company from taxes for 15
years, she said.

Cuba shows interest in Bulgarian food, perfumery and cosmetics,
particularly rose oil and products.