Bulgaria's Security Sector SMEs Facing Bankruptcy
Bulgaria’s small and medium enterprises in the security sector are facing bankruptcy as a result of delayed state payments, experts have warned.
"Government's intentions to criminalize tax evasion and non-payments should take into consideration the fact that the state is not a regular payer itself,” says a statement of the National Association of Industrial Security Companies (NAFTSO).
“Despite the European directive which was adopted by Bulgarian legislation with the Commercial Law amendments in February last year, public institutions continue to delay payments on the provided security services under contracts," NAFTSO argued, cited by Bulgarian Focus News.
Members of the association have warned that many SMEs in the security sector have already applied all possible financial instruments in an attempt to cope with the shortage of financial resources. However, the delayed payment by public institutions have put these companies in a state of indebtedness to the state.
“Government's pledges will be worthless if companies with a long history and a serious development potential go bankrupt,” NAFTSO stated.
- » State Commission to Scrutinize Bulgaria's Hypermarkets
- » Bulgaria To Be Re-industrialized
- » London and Rome Lure Bulgarian Tourists for Easter
- » Bulgaria To Launch Tourism Campaign in Germany
- » Bulgaria's Ex-FinMin to Enter Supervisory Council of Russian VTB Bank
- » Consortium of 3 Banks to Sell Bulgarian Govt Bonds Worth BGN 3 B
The closing of small businesses or their amalgamation into larger ones is following exactly the same course as has been followed in Africa and South America, immediately prior to them having to sell out to multinationals at a reduced cost and resulting in the layoff of local staff. And we can see what happened in those two continents