Chapter 5

Bulgaria

 

5.1 The Government of People’s Republic of Bulgaria had extended a credit for Rs.11.25 crores in 1957 which consisted of Rs.8.25 crores as Govt. to Govt. credit and Rs.3.00 crores as Supplier’s credit.

5.2 The credit was extended for financing purchase of capital equipment such as food processing equipment, sulphuric acid plant etc. from Bulgaria. However, no contracting actually took place under the Government to Government segment of the Credit, while the utilisation in terms of contracting under the Supplier’s Credit segment was to the extent of Rs.2.93 crores upto December 31,1978. The entire uncontracted balance of the credit i.e. Rs.8.32 crores lapsed on December 13,1978 pari-passu with the cessation on that date of the rupee payments arrangement between the two countries.

5.3 An important feature of the Bulgarian Credit is that repayment of principal and payment of interest are made in Indian Rupee to facilitate the Bulgarian authorities to purchase Indian goods for export to Bulgaria under the Indo-Bulgarian Trade Agreement in force from time to time.

5.4 The details of loan is given in Annexure I.