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The Balkan region is the fastest developing area, based on GDP growth rate and investment.

The GDP growth rate is 5.7 per cent higher than the average in EU member states, Bulgarian National Radio reported. Investment in the region exceeds the EU average by 200 million euro.

This data was presented by Bulgarian Chamber for Commerce and Industry (BCCI) head Bozhidar Bozhinov during a conference on growth and co-operation perspectives in Southeastern Europe.

Poor infrastructure development remains the main problem of the region. The Balkans lack a good road network and energy systems, Bozhinov said.

Bulgaria?s GDP is the highest in the region, Deputy Economy Minister Luchezar Borisov said. The country?s economic development and private sector involvement are on the rise in the last years, Borisov said.

The country should focus on removing limitations to the functioning of small and medium-sized businesses and should encourage innovations to meet European requirements, Borisov said.

The International Monetary Fund (IMF) gave a positive evaluation of the Cabinet's fiscal policies and the manner in which Bulgaria's agreement with the IMF is executed, IMF mission head for Bulgaria Ajai Chopra said.

Chopra and IMF resident representative James Roaf met Prime Minister Sergei Stanishev and Finance Minister Plamen Oresharski, Bulgarian National Radio reported.

Stanishev said that maintaining macroeconomic stability and high economic growth rate were among the priorities for Bulgaria before its EU accession.

Bulgaria was also trying to implement all needed measures for entry into the euro zone, said Stanishev.

Chopra said the IMF would continue its support in the form of analyses and technical aid, even if the fund's financial programme in the country does not continue.

Reforms in the tax administration and the high turnover in tax collection were positive developments, said Chopra.

More work was needed on structural reforms, Chopra said. Stanishev said the Cabinet tried to implement measures aimed at increasing competitiveness and the national export capacity.

Eco skyscrapers from a last generation might rise in Bulgaria's capital Sofia, Black Sea cities Burgas and Varna and the country's second city Plovdiv over the next few years.

Georgi Stoilov, President of "Interarch" 2006 seminar that is to kick off in Sofia on May 11, broke the news Monday explaining that the eco skyscrapers provide more space and greenery in the city atmosphere.

The 11th edition of the forum will take place May 14 to 17 in Sofia and a contest for an eco skyscraper has been opened within the expo. So far 12 projects have been submitted, three of them come from Bulgaria authors. Eco skyscrapers have already been built in Frankfurt and several Asian countries.

Over 200 architects and students have already declared their willingness to participate in the forum dedicated to "Globalisation of the community and the values of architecture."

A total of 1928 projects, worth BGN 1,16 M, have been approved and financed under SAPARD since its creation, it was announced at a pioneer forum about the future of Bulgaria's agriculture in the European Union.

After weeks of allegations of SAPARD funds embezzlement, Agriculture Minister Nihat Kabil remain consistent in ruling out the possibility of misusing funds under the EU program, as claimed by local media reports.

Speaking at the forum "Bulgaria's agriculture in the European Union", the minister said the improvement of the Bulgarian agriculture and the quality of the production as well as the establishment of favourable living conditions for the Bulgarian farmers are among the main aims of the country's Agriculture Ministry.

"Once we join the Union in 2007 the most decisive period of the Bulgarian agriculture is about to begin", Kabil argued.

The agriculture sector in Bulgaria provides jobs for 30,000 people or 10% of all working people in the country.

Nearly 70 km of highways will be constructed by the end of the year, managing director of the national roads agency Vesselin Georgiev said.

More than 1000 km of roads will be restored in 2006 and 2007, Darik Radio reported.

Most widely used roads and highways will be repaired before the start of the summer season, said Georgiev.

Plans for the construction of new roads will be ready by the end of the year so that the agency applies for EU funding in the beginning of 2007, said he.

The agency will also complete the documentation needed for the initiation of concession tenders for Strouma, Maritsa and Cherno More highways.

Georgiev said the agency needs 285 million leva for road repairs after the floods this year and last summer. The sum does not include funds needed for repairs in municipalities alongside the Danube. Water there has not pulled out and damages will be calculated later, said Georgiev.

The construction of a luxurious holiday complex near Bulgaria's Pamporovo resort has begun, media revealed Saturday.

Perelik Palace will cost EUR 5 M to the investors, the 21 Century company. It will offer luxurious holiday homes and spa & sports facilities in one place.

A total of 61 one-bedroom apartments, 4 two-bedroom apartments, 3 three-bedroom apartments, 91 studios and 9 maisonette apartments will be available for seekers of a quite and comfortable retreat in the beautiful mountain.

The complex should be ready next November, the Investor.bg website reports.

The interest of foreign investors in Central and Eastern European property continues.

As a result of the high demand, the region might be unable to offer enough real estate purchase opportunities, Dnevnik newspaper reported.

Western investors? interest is on the rise also because of the expected EU membership of several countries in the region, the Wall Street Journal reported. This development would likely guarantee investment stability and will minimise economic risks.

Last year Bulgaria, the Czech Republic, Poland, Romania, Russia and Slovakia acquired 5.8 billion euro through property deals. The figure represents a 38 per cent increase compared to the 4.19 billion euro in 2004.

Poland registered the highest increase, followed by the Czech Republic and Hungary.

Office property investment represents the highest share. It totals 44 per cent of the overall investment in the region. Investors also seem to be highly interested in trade areas.

The main problem investors expect this year is the inability to find enough suitable offers to meet the high demand, Dnevnik reported.

Bulgarian companies will also increase investment in the sector. Currently the stock exchange lists 13 investment trusts, specialised in property. Three more companies will be listed soon.

SkyEurope expands eastwards and enters Bulgaria and Romania
SkyEurope has been granted traffic rights to launch services to Bucharest and Sofia

SkyEurope Airlines, Central Europe?s largest low-cost low-fare airline, announced today its entry on the Bulgarian and Romanian aviation markets, after obtaining traffic rights from Bulgarian and Romanian authorities.

SkyEurope Airlines was established 4 years ago, in 2001, and pioneered low-cost aviation in Central Europe by becoming the first low-cost airline to open bases in Bratislava (Slovakia), Budapest (Hungary) and Krakow (Poland). To further build on its first mover advantage, SkyEurope is now expanding eastwards, with the first low-fare flights between Bratislava, conveniently located only 50 km away from Vienna, and the Bulgarian and Romanian capitals.

Flights to and from Sofia and Bucharest will begin on the 9th and 12th of December, respectively, with fares starting from as low as ? 25 one-way excluding taxes. A SkyShuttle bus service between Bratislava Airport and the city of Vienna is available to SkyEurope passengers.

A National Tourism Board will be established in Bulgaria on May 3, it emerged during a conference, organized by the Bulgarian Convention and Visitors Bureau (BCVB).

Bulgaria's State Tourism Agency head Mario Al-Jebouri pointed out that congress tourism is one of the country's priorities. Its problems have been separated in a special chapter in the new strategy for tourism development, Al-Jebouri underlined during the conference "European future of Bulgarian tourism."

Polly Karastoyanova, BCVB Managing Director, specified that beautiful resorts are not enough to say that Bulgaria is a well-developed tourism destination. The unsolved problems with infrastructure, old seaports and airports and the weak tourism advertising remain a factor.

Property prices in Sofia continue to rise according to the latest imoti.net data.

For the last six months the price of a square metre has risen to nearly 600 euro. Among the most expensive suburbs are Ivan Vazov, Yavorov and the central parts of the city, Banker newspaper reported.

Brokers say offers lower than 400 euro a square metre have simply disappeared. Cheaper properties include those in Obelya, Tolstoi, Svoboda and Lyulin.

Interest in properties situated less than an hour away from Sofia city also rises, brokers say. These estates are cheaper, less than 370 euro a sq m.

Among the most expensive towns in Sofia region is Samokov, due to its proximity to Borovetz ski resort. Koprivshtitza offers newly built houses in the traditional architectural style. Dolna Banya is another place attracting investors' interest. As a spa resort near Borovetz, it offers good opportunities for tourism.

Property prices in the regions mentioned vary from 300 to 700 euro a sq m, but brokers say that these cheap offers will not hold on for long and prices will inevitably rise. This makes buying an estate near Sofia in 2006 a really good investment, Banker newspaper reported.





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