Good Stories of Foreign Investment
Good Stories of Foreign Investment

Author(s): Daniela Bobeva
Subject(s): Politics / Political Sciences, Politics, Social Sciences, Economy, National Economy, Sociology, Economic policy, Applied Sociology, Economic development, Financial Markets, Socio-Economic Research
Published by: Център за изследване на демокрацията
Summary/Abstract: The purchase of the Bulgarian state enterprise MAIZE PRODUCTS SPLTD is the first privatization deal completed in Bulgaria under the Transformation and Privatization of State and Municipal Enterprises Act. Being the first privatization deal, it has been accurately analyzed among experts, politicians and state privatization bodies. A year later it can be said that it has been a successful contract for both parties - the Bulgarian side and the Belgian group. This contract turned to be a good start for the Bulgarian privatization and the inflow of foreign investment. As Bulgaria is in the initial phase of attracting foreign capital, the prevailing investors in the country are the big multinational companies. This is the case of AMYLUM. Privatization process is one of the main mechanisms for channelling long-term large-scale foreign investment into Bulgarian industry. The biggest investors in the country turned to be the buyers of the large-scale Bulgarian enterprises. A mention should be made that foreign investors find investing in the country through privatizing more preferable. This way they are more confident about their investments. Practical problems about establishing a joint-venture in terms of the participation of each of the parties - appraisal, management and staff issues.,are sidestepped in the privatization deal. The purchase of the Bulgarian MAIZE PRODUCTS SPLTD is a pilot case of inward foreign investment through privatization. It points out the main problems foreign investors face in the country as well as the comparative advantages of the Bulgarian investment opportunities.

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