According to the budget forecast of the Bulgarian government for 2012, the incomes from privatization will be about 300 million levs (approximately 150 million Euros). This is a serious decrease in comparison with the forecasts for 2011 for 450 million levs (approximately 225 million Euros). At the moment only half of the expected income for 2011 has been received, mainly from the sale of Bulgartabak Holding for 100.1 million Euros to a company financed by the Russian VTB Bank Group.
The Bulgarian Minister of Finance Simeon Diankov commented that he is optimistic that all the planned income for this year from the privatization of state companies will be received due to the privatization of the state shares in two of the three major electricity distribution companies in Bulgaria. The state holds 33% of the electricity distribution companies and the Bulgarian government shall put these shares on the Bulgarian stock exchange in November 2011. The expectations are that the expected price for these state owned shares will be between 70 and 150 million levs (approximately 35-75 million Euros), a much lower price than the price achieved during the privatization in 2004, when the Austrian EVN paid 271 million Euros for 67% of the electricity distribution companies in Plovdiv and Stara Zagora.
Category: Bulgaria | Tags: Bulgarian Minister of Finance, Bulgarian Stock Exchange, Bulgartabak, EVN, forecasts - Bulgarian economy 2012, privatisation in Bulgaria, Simeon Diankov, VTB Bank Group Comment »