Currency Information

North-Central Region Profile

   Area and geography: an area of 18 270 sq. km or 16.5% of Bulgaria's total area. The North-Central Region is situated in the central part of Northern Bulgaria. It borders the Danube to the north, which marks the Bulgarian border with Romania. The region borders the Iskar river to the west, the river of Rusenski Lom to the east, and the Balkan mountains to the south. It borders with all planning regions of the country: the Northwestern and the Southwestern to the west, the South-Central and the Southeastern to the south, and to the east – with the Northeastern region. Administratively, the region comprises 5 sub-regions (Pleven, Veliko Tarnovo, Ruse, Lovech and Gabrovo), which have 41 municipalities and 1 049 settlements between them. The main regional centres are Ruse with 166 000 inhabitants, followed by Pleven and Gabrovo.

   Climate: The climate is moderately continental in the north and centre of the region. But it becomes a typically mountainous climate further to the south. The Danube plain and the lower Balkans are wide open to the north and northeast, which accounts for the influx of cold air masses. The average annual temperatures are between 11.5?C and 12?C. The distribution of annual precipitation, which is between 500 mm in the Danube plain and 1000 mm in the mountainous south, is extremely favourable for agricultural development.

   History: Thracian tribes inhabited this area in former times. Remnants of Roman strongholds at Melta Lovech and Storgozia (today Pleven), which were built after the Roman conquest of the Balkan Peninsula, have been preserved here. From 1185 till 1393 this territory was the centre of the second Bulgarian state, which had its capital at Veliko Turnovo. The fortifications on the Tcarevec hill, the remnants of the churches on the Trapezica hill, and the numerous monasteries in the vicinity of Ivankovo (in the region of Rousse) date from that time. Under Ottoman rule, many trading and cultural centres were founded, such as Gabrovo, Elena, Tryavna, and Svishtov. In 1834, after river transport along the Danube River began, the region developed into an important transport centre.

   Population: The population growth for the period 2000 – 2003 is negative for all districts of the region. Its value for the North-Central region as a whole is -8,6. The negative values of this indicator over a long period of time are due to the ageing of the population and changes in the reproduction inclination of the people, resulting from the low standard of living.

   Employment rate: There has been a gradual growth in the employment level in the region. The employment ratio has the following values: in 2001 – 37,4 %, in 2002 – 38,00 % and in 2004 - 40,00 %.

   Unemployment rate: In 2003 the highest rate of unemployment among the six regions was in the Northwestern region (23.4%). In the North-Central region the unemployment rate varies among the different districts. The highest value of the unemployment rate indicator in 2003 was for Pleven District - 18,00 %, followed by Veliko Tarnovo - 16,00 %. The lowest value was for Gabrovo District – 8,00 %, which results from the high share of invested funds in the development of the regional economy.

   Distribution of employment: The services sector is the largest employer, with 40% of the active population working in this area in 2000. This percentage is below the national average. Industry employs 33% of the active population, which is a high share in this sector. The main factor behind this is the high employment level in the food and textile industries. Persons employed in the agricultural sector account for 27% of the regional total, which is very slightly above the national average.

   Industry: Food and textile industries are the most developed industries on a regional level.

   GDP: The GDP, according to current prices in the North-Central Region for 2003, amounts to 4386 mln BGN, which rates it fourth among the six planning regions. The growth of the indicator for the period 2000-2003 is as follows: 2000-2001 – 10,44 %; 2001-2002 - 8,8 %; 2002-2003 – 3,86 %. The level of the economic development, measured by GDP per person does not exhibit a considerable location disparity among the districts of the region.

   Development of the regional economy: The economic and geographic location of the Danube region as a relation of the subject territory to close located economic potential is characterised by essential positive characteristics. The Danube influences the development of the international transport, agriculture, fishing, sports, economic tourism, and recreation. The established free trade area in Rousse is of importance, too. Agriculture is well developed, thanks to a favourable climate and good soils. As a result, the region leads in the production of vegetables and in vine growing. Arable land accounts for 36.8% of the region's total area (in 2002). The fertile alluvial soils in the Danube plain are useful for agriculture, particularly for growing vegetables and crops. There are also limited deposits of ores and minerals. The region's limestone deposits have spurred the production of cement at Pleven and Zlatna Panega. The system of educational establishments, developed on the territory of the region includes all educational levels. 497 kindergartens, 392 general schools, 24 specialised schools, 6 universities, and a great number of specialised institutes are situated on the territory of the North-Central region.

   Infrastructure and urban development: Another regional advantage is its favourable geographic location in relation to local transport axes and to international transport routes. The location of the North- Central Region favours the development of transport due to the opportunity to combine all types of transport – waterway, railway, road, and air as well as to the fact that two important Pan-European corridors cross the region. The 7th and the 9th European traffic corridors cross the territory, the former following the right bank of the Danube River. Part of a major local route, the Hemus highway, runs through North-Central Region. The electricity network on the territory of the North-Central Region is well developed in a way to manage a higher load, which can be a prerequisite for future economic development and cross-border co-operation. The main water supply system in the towns and the villages of the region was developed in the 70s and about 65% of the water pipes are asbestos-cement. Limited water resources are provided by the Danube, Iantra, and Rosica rivers. The development of the communication infrastructure and the quality of the connections in the region are considered by experts to be in a relatively good condition.

   Environment: In environmental aspect the region is not quite different from the rest of the regions in the country. The main reason for the deteriorated condition of the surface waters in some areas is the human activity. The main sources of air pollution are the following anthropogenic activities: the power generation by the hydropower plants and the heating plants, the industrial production concentrated in industrial zones or separately located; the road transport; residential heating, and the local steam furnace installations. The region also suffers from environmental damage, particularly around Pleven and Zlatna Panega, where the major cement-producing enterprises are sited. The extraction of ore deposits also contributes to the environmental pollution in the region.

   Protected territories and landmarks: There are over 60 protected territories of various status and level of protection on the territory of the North-Central region. Many cultural landmarks are also preserved in the North-Central region, dating from the period of the second Bulgarian state and the Enlightenment. Numerous monasteries are situated in the region, two particularly impressive ones being the Troyanski and Dryanovski monasteries.

The tendency is for a decrease in the attracted foreign investments in the North-Central region which amount to 360 324,3 USD in 2003, or 7,16% from the total amount for the country. If we study the trend in the foreign direct investment in two of the country’s districts, namely Gabrovo and Lovech, for the period 1995 –2001 we will find a peak in the investments in 1997-1999. But for the period 2000-2001 in Lovech District we will also find a sharp decrease in foreign investment, which is more than 5 times. In Gabrovo District in 2001 there is a decrease, more than 10 times, in the investment level. The foreign direct investment in Rousse District increased 6 times for the period 1998, although there has been no foreign strategic investor in the district so far.

Weather Information