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Bulgarian National Railways 'Not Facing Bankruptcy'

Business | May 19, 2014, Monday // 10:17| Views: 723 | Comments: 0
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Bulgaria: Bulgarian National Railways 'Not Facing Bankruptcy' Hristiyan Krastev, Executive Director of Holding Bulgarian State Railways (Holding BDZ), photo by BGNESf

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.

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Tags: BDZ, Hristiyan Krastev, debt, lenders, Bulgarian National Railways, Danail Papazov
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