Executive Director of the Bulgarian Investment Agency, Stoyan Stalev

The reduced flow of foreign investments is one of the main reasons for the crisis in the Bulgarian economy. The records for the first six months indicate an economic drop of 4.2% in comparison with the same period of 2008. Meanwhile, countries like Germany, one of the main foreign trade partners of Bulgaria, observe some positive signals for getting out of the recession. In addition, world well-known trade-marks, which did not have representations in our country up to now, are expected to open their shops in Bulgaria this autumn. According to the Executive Director of the Bulgarian Investment Agency, Stoyan Stalev, a foreign capital of BGN 2 billion will be invested in the Bulgarian economy.

The data for the first six months of 2009 indicate that the FDI have reached about € 1.6 billion. This is about 30% less than the reported statistics for the same period of last year. All the same, this is a satisfactory result, considering the difficult year experienced worldwide. At present, the leading spheres of activity, in which investments are being made, are the financial, the commercial, the real estate and the industrial sectors.

Stalev explains that Bulgaria has a good legal system; companies are quickly registered by foreigners in Bulgaria and they enjoy an equal treatment like the Bulgarian citizens. There are also no limitations on the capital and the profit exportation.

Note: At present a new bill for the drastic reduction of the required minimum capital for company formation is being drafted. It is expected to be promulgated most probably in 2010.

The Bulgarian government, all EU member-states and countries outside the community share Stalev’s idea of major investment projects to be financed by the state, however, this is possible once we enter a more favourable fiscal year.