Bulgaria can not have a localized-script version of its country-code domain .bg, because it looks too much like Brazil’s current ccTLD.
Bulgarian business daily Dnevnik is reporting that ICANN has turned down Bulgaria’s request for .бг, the Cyrillic translation of .bg, because it looks very much like .br.
Part of ICANN’s internationalized domain name fast-track process checks whether applied-for strings could be visually confusing. Clearly, this is one of them.
Russia, Egypt, Saudi Arabia and the United Arab Emirates have already passed the test and have active IDN ccTLDs.
The Bulgarians are not giving up, however. Dnevnik reports that the country will most likely apply for .бгр instead.