It was hosted in several cities in Bulgaria from 19 to 27 September 1981, with the final round held in Sofia.

In the first stage, the twelve participants were divided into three groups of four teams each.

In the second stage, two groups were formed, one containing the winners and runners-up from all first stage groups (six teams in total) to contest the tournament title.

A second group was formed by the remaining six teams which played for position places (7th to 12th).

All groups in both stages played a single round-robin format.