WB PAL 2 Releases Hinges on Bulgaria's Tobacco Giant Sale_x000d_
15.05.2003
Source: Novinite.bg
The finalization of Bulgartabac's privatisation by the end of the year and the successful implementation of reforms in the judicial system are the conditions for the release of the World Bank PAL 2 loan, said World Bank Country Director Andrew Vorkink after his meeting with Deputy Prime Minister and Economy Minister Nikolay Vassilev May 14. Andrew Vorkink called for an end to the "civil war" that is raging between government, parliament and president in Bulgaria. In his words the privatization of Bulgartabac will be a sign of the government's ability to privatize and work in tough conditions, a sign to foreign investors of the seriousness of the privatization process in Bulgaria. Should the political system in Bulgaria come out stronger than the government's reformist efforts, we will be left without PAL 2, Deputy PM and Economy Minister Vassilev commented. The PAL program, key component of the Bank's assistance strategy for Bulgaria, is comprised of three loans. At the beginning of May Bulgaria received a EUR 151.2 M loan under the Programmatic Adjustment Loan 1 (PAL 1) in balance-of-payments support from the World Bank. PAL 2 will aim at strengthening public administration, the judiciary, and anti-corruption initiatives. PAL 3 will emphasize on building human capital and improving delivery of social services.