(C) The FDIs in Bulgaria and the influence of the crisis

The FDIs for 2007 and 2008 until now are represented by 27% share capital in the non-banking sector, 30% in real estate and 26% in financial and commercial debts between related companies.

The very first part is inflexible and sensitive to the price and the quality of labor force and the governmental FDI stimulus packages. The critical issue for Bulgaria is the insufficient skills, knowledge and efficiency of the white and blue collars. Until the elections for the next government, the latest should be fully aware that only strong investment in the educational system could meaningfully foster the FDI.

The real estate sector is on its way to hit the economy soon. (decline for the 01-08.2007 versus the 01-08.2008 period by 22.4%)

The most flexible of the three major elements of the FDIs – the loans have already severely stricken the economy. The decline for the first eight months of 2008 compared to the same period for 2007 is some 68.7%, or some 83.9% of the FDI decline.

The solution of the FDI case lies in the fostering of products and services with high added value which require high professional skills and competence.