Bulgaria Makes First Steps in Mail Service Liberalization
Business | November 5, 2009, Thursday
Bulgaria's Transport Minister Alexander Tsvetkov announced urgent measures for improving the financial performance of the state postal monopoly. Photo by BGNES
Bulgaria's new government will create five new subsidiaries of the state postal monopoly as part of plans to liberalize the mail market, Transport Minister Alexander Tsvetkov said on Thursday.
The state will hold a 51% stake in the subsidiaries, which will deal with door-to-door shipping, payment transfer, hybrid mail, catalogue and IT services.
The minister said investors will be sought for the five subsidiaries, which are expected to attract at least BGN 40 M. Investors have already declared unofficially their interest in three of the subsidiaries – Hybrid Post, Bulpost and Info Post.
The mail service overhaul is expected to rake in BGN 4,8 M. The minister said that its 28 territorial units will be reduced to seven, while its regional head office – from 126 to 96. There are no plans for lay-offs.
The state postal monopoly posted losses of BGN 1,8 M at the end of September.
Under European regulations Bulgaria should open its postal market, now monopolised by the state company, to competition on Jan. 1, 2011.
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