Vladimir Vladimirov, Chair of the Managing Board of the Bulgarian State Railways (BDZ) company, has said that train tickets will increase by up to 10% in the beginning of 2013.

In a Wednesday interview for the Bulgarian National Radio (BNR), Vladimirov specified that the exact amount of the increase would become clear in October, when an expert analysis was due to come out.

He noted that the tariff increases would be different for the different train classes.

Vladimirov attributed the planned price hike to the inflation rate in the country influencing expenses of the Passenger Services department of BDZ.

He said that the fares would be updated on an annual basis, starting 2013, in order to compensate for the losses and make BDZ competitive to other carriers.

BDZ expects to receive its state subsidy by August 13.

BDZ's Passenger Services unit was in dire straits after its state subsidy of around BGN 14 M was suspended in July due to its failure to pay a loan installment.

Finance Minister Simeon Djankov subsequently unblocked the subsidy in exchange for a package of measures aimed at boosting revenues and reducing losses at the railway company.

Transport Minister Ivaylo Moskovski was adamant that there would be no staff cuts or reduction of the number of trains.