Bulgaria Mulls Scrapping Privatization of Cargo Railway Unit

Business | May 29, 2013, Wednesday // 18:05
Bulgaria: Bulgaria Mulls Scrapping Privatization of Cargo Railway Unit Bulgarian Transport Minister Danail Papazov. Photo by BGNES

The Bulgarian government will likely stop the privatization deal for the freight unit of the Bulgarian State Railways Company, the country’s newly appointed Transport Minister said Wednesday.

Transport Minister Danail Papazov told reporters that hundreds of jobs would be lost if the deal goes through.

However, the new Minister pointed out that no conclusive decision has been made yet, adding that the situation should be thoroughly analyzed.

In mid-November 2012, Bulgaria's Privatization Agency launched a second privatization procedure for BDZ's Freight Services, after the first one fell through.

The second attempt to sell the cargo unit of BDZ only included strategic and financial investors.

The intended privatization of BDZ's profit making unit, Freight Services, aims to secure money to cover huge debts of the company and help revive its other unit, Passenger Services.

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Tags: privatizaiton, Danail Papazov, assets, cargo unit, bond, Bulgarian State Railways, BDZ, Freight Services, Passenger Services, Agency
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