Bulgarian National Railways 'Not Facing Bankruptcy'
The Bulgarian National Railways (BDZ) are facing nether bankruptcy nor mass layoffs, Hristiyan Krastev, the state-owned company's chief executive, said on Monday.
Krastev told the public broadcaster BNT that BDZ is still committed to reducing its huge debt, which in his words went BGN 100 M (EUR 50 M) down in 2013.
He added that his company continues negotiations with lenders and stakeholders.
Purchase of new wagons and locomotives is scheduled to be made by the end of the year, with a special focus on improving conditions and capacity of passenger trains.
The total debts of BDZ amount to BGN 620 M (EUR 310 M) as of end-April 2014, and its larger creditors (banks like Societe Generale, BNP Paribas, KFW, and Bulgaria's First Investment Bank) have been considering whether to sell off some of the company's assets due to concerns it would could not handle its financial burden.
Transport Minister Danail Papazov has however asserted BDZ is not facing bankruptcy and has vowed that his government would conduct successful negotiations.
- » NOA UK Awards Bulgaria as World's Offshoring Destination of 2015
- » Bulgaria Lagging Behind in Education - WEF
- » EUR 12.3 M Gas Transmission Pipeline Opens in NE Bulgaria
- » Bulgaria Registers Negative Balance of Trade with EU in January-July
- » Turkish Arkomat to Open Second Wire Harness Production Plant in Bulgaria
- » Bulgarian FinMin Foresees More Spending on Defence, Education in 2016 Budget