LITESCO GIVES UP INVESTING IN BULGARIA
The Spanish finance company Litesco, implementing since 2001 a project for purchase of land for growing vineyards in the region of the village of Lesichovo (near Pazardjik), has reconsidered its plans, it became known in the beginning of 2004. According to sources of the company's Bulgarian representative office, Litesco is already looking for a buyer of the purchased land and is withdrawing from the Bulgarian market. The reasons are the delay of the process of gaining ownership on the purchased plots, the lack of legislative regulations supporting the consolidation of land, and the increase of costs above the amount projected in advance. Litesco has bought about 700 dca within two years, but the plots have not been grouped. Therefore, the purchased land cannot be used for growing perennial plants, while the establishment of consolidated plots takes another one or two years. The experience of both the Spanish and Bulgarian investors shows that at least two years are necessary in order to form a plot of about 400 dca, at that on condition that the purchase prices are some 20-30% higher than the market prices for the respective region.