The sell of 154,000 decares of state-owned farm land by tender brought some life into BSE

The Ministry of Agriculture and Food triggered the biggest rise in activity on the Bulgarian Stock Exchange (BSE) this summer with its announcement that state-owned grainfields, part of the Land Tenure Fund, are to be put on the market via public tenders in which only owners of registered compensation vouchers (RCV) are allowed to participate. Exclusively for Klassa.bg Tsvetoslav Tsachev of Elana trading commented this market development related to an open procedure for the sale of 154,000 decares spread all over the country, excluding Gabrovo and Sofia areas. After rumors about the pending sale of state land turned out to be true, the price of RCVs practically multiplied, the expert noted. "The latest information puts the total size of grainfields planned for sale at 154,000 decares, which is certain to generate a turnover of BGN 50 mln or more. Given the trading volume over the past few months it's safe to say that a great deal of those securities have already gone through the market," Tsachev added. RCV deals accounted for 70% of Tuesday's overall trading volume of BGN 673,000, with another 20% coming from transactions involving bonds of Bulgarian-American Credit Bank, according to BSE data.

The sale of state-owned land is one of the measures the Government is taking to boost its revenues. In the spring of 2010, Miroslav Naydenov, Minister of Agriculture and Food, said that more than BGN 400 mln could come from the sale or the rent of land included in the state Land Tenure Fund.

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