Creditors Planning to Sell Off Bulgaria's State Railways Assets

Business | April 26, 2014, Saturday // 12:45| Views: 1838 | Comments: 1
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Bulgaria: Creditors Planning to Sell Off Bulgaria's State Railways Assets Desiro train. Photo: Wikipedia

The creditors of Bulgaria's State Railways (BDZ) will most likely sell of the company's most valuable assets, said Transport Minister Danail Papazov. 

According to him, the large creditors – the banks BNP Paribas, Societe Generale, KFW, Dexia, Depfa and First Investment Bank – will have a meeting in the beginning of May, at which will decide to sell off the 25 diesel Desiro trains and more than 3000 freight cars.

According to Papazov, this would not bankrupt BDZ. 

The company owes its creditors BGN 620 M. The negotiations with them are hard, as they want a meeting with Prime Minister Plamen Oresharski and a state guarantee covering the debts. 

Papazov said the hardest negotiations were with the German FMS Wertmanagement who froze BDZ's bank accounts in March because of a default on EUR 11 M debt. 

An year earlier Depfa Bank froze the assets of BDZ Freight Transports, again because of default on a loan.

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Fr Jack Hackett - 28 Apr 2014 // 09:49:02

Bulgaria must learn from the mistakes made by other EU countries and NOT sell off its national assets to foreigners.