Economic and financial section > Report of the Commissioner of the League of Nations in Bulgaria > 24th report

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no legal validity in Bulgaria and will be settled in accordance with the system for the supply of
currency by the National Bank.
On the other hand, the Bank has agreed to settlement on a clearing basis for certain exports
needing special encouragement (fruits and vegetables).
The result of the restrictions has been a rapid increase in the volume of outstanding commercial
claims, represented by invoices and bills that have matured. Ihe amount of invoices fell from
440 millions on May 20th to 280 on July 31st, but during the same interval the total value of bills
of exchange postponed rose from 105 to 597 millions. This is a highly dangerous increase which is
reflected in the daily complaints received and seriously swells the arrears which burden the Bank’s
scanty resources.
Appendix 3 describes the sales and purchases of foreign exchange effected by the National
Bank during the first seven months of 1932, including clearing settlements. During that period,
the average percentage of foreign exchange derived from exports amounted to 80 per cent of
the exports registered; the percentage of foreign exchange supplied for imports was 58 per cent,
a much lower rate than that for 1931, due to a further considerable falling-off during the last
three months.
These figures show that receipts and issues of foreign currency are being more strictly
supervised. It is a pity that exceptions should sometimes be made by the public departments
themselves and that the latter show reluctance in supporting the system whereby all foreign
obligations are centralised and made subject to previous authorisation by the National Bank
IV. Economic Situation.
(a) General.
The total foreign trade of Bulgaria declined heavily during the first seven months of 1932.
being only 3,890 million leva as compared with 6,304 for the same period in 1931—a almost
40 per cent.
Exports dwindled in value from 3,443 to 1,826 millions (—47 per cent) though they were
only 14 per cent less in volume. This decline is mainly due to tobacco (— 45 per cent by weight,
67 per cent by value). It is true that the main movement in tobacco exports came later this
year, but the fall in prices was impressive. Moreover, the quantities exported for the whole year
will certainly be much lower than those for 1931.
The fall in imports was less marked (— 28 per cent by value and — 19 per cent by weight),
but became more noticeable during the last months of the period under review, usually a time
when a seasonal increase makes itself felt. The decline for the quarter from May to July amounts
to 38 per cent by value and 20 per cent by weight, as compared with the same quarter in 1931.
The dearth of foreign currency and the restrictions introduced by the National Bank are apparently
beginning to have their effects.
The trade balance, nevertheless, shows a deficit of 238 millions as compared with a surplus
of 582 for the same period in 1931. This is a serious matter, in view of the fact that, under present
circumstances, equilibrium in the balance of payments can only be achieved if the trade balance
shows a surplus. Undoubtedly, credit devices still make it possible for the economic system
of the country to postpone most of its foreign obligations either by means of amicable agreements
or as a result of force ma'jeure. Such a situation, on the other hand, can hardly be expected to
continue, as it entails various retaliatory measures such as the blocking of credit balances or
urgent demands for clearing, and results in the foreign exporter ceasing to make delivery.
BULGARIAN EXPORTS DURING THE FIRST SIX MONTHS OF I93O, I93I, AND 1932.
Germany . .
Italy ....
Austria . . .
Czechoslovakia
Belgium . . .
Poland . . .
Hungary . .
France . . .
Switzerland .
United Kingdom
Roumania . .
Greece . . .
Other countries
Total
First six months of
1930
691
289
224
357
136
339
172
180
105
77
17
109
330
3,026
1931
Millions of leva
IT49
188
608
33
188
138
123
157
163
16
7
57
282
3,109
1932
296
250
244
57
224
119
3
4i
100
47
5
12
286
1,684
First six months of
1930
1931
22.8
9-5
7-4
11.8
4- 5
11.2
5- 7
6
3-4
2- 5
0-5
3- 6
11.1
100
Percentage
37
6
19-5
1
6
4.4
4
5
5-2
0.5
0.2
1.8
9-4
100
1932
17-5
14.8
14.4
3-3
13-3
7-i
0.2
2.4
5-9
2.7
0.3
0.7
17.4
100