International evaluation standards to be introduced in Bulgaria

Velizar Velkov

The Chamber of Professional Appraisers (CPA) has requested the introduction of international evaluation standards in Bulgaria. Such standards are already being applied in Romania and even in Albania, said Diana Nikolaeva, Chamber President and partner in the Ernst & Young consulting company.
Evaluators in our country still have a bad reputation because of the uproar raised about privatisation transactions since the beginning of the transition, said Tihomir Toshev, Manager of Advance Address Expert Evaluations. This is a respectable occupation in developed markets, as businesses often resort to the services of such organisations. A total of 12,000 people in our country have completed a 5-day course for appraisers but, according to Toshev, only 500-800 of them are real professionals. Currently, evaluators make assessments in the absence of a market for such services, added Sergei Mashiah Manager of Yavlena Impact. According to him, there are many people in the industry charging way too low fees.

In the last two years, the demand for professional evaluations of various assets has increased, reported CPA. The situation on the financial markets and the fluctuating trends in the real economy, on the one hand, and increased expectations for the reliability of financial information, on the other, have set new challenges for the valuation businesses, said Nikolaeva. According to her, unrealistic valuations of certain financial assets are among the reasons for the financial crisis.

Representatives from the Chamber did not hide that they are the second similar organisation in the country. Since March 2009, the Chamber of Independent Appraisers started operations as well. It monitors mainly compliance with the Law on Independent Evaluators. The CPA will fight in turn for the introduction of international standards and the development of the guild.