Banks Refuse Loan to Bulgaria’s Bulgargaz Twice in 6 Months

Business » ENERGY | November 28, 2014, Friday // 08:27
Bulgaria: Banks Refuse Loan to Bulgaria’s Bulgargaz Twice in 6 Months Photo by BGNES

For a second time in 6 months, banks have refused to provide a loan to Bulgaria’s state-owned gas supplier Bulgargaz.

In October, a public procurement for BGN 140 M was opened, which was subsequently terminated, according to the website of the Public Procurement Agency, as cited by the Bulgarian National Radio.

Another public procurement for BGN 90 M was opened in June, but it also failed to result in a loan for Bulgargaz.

It is now unclear whether the state-owned gas supplier will manage to find money to pay in advance for the next gas shipment from Gazprom.

Caretaker Economy and Energy Minister Vasil Shtonov argued that the provision of working capital for Bulgargaz had to be one of the first tasks for the next government.

The financial condition of Bulgargaz is aggravated by the fact that 98% of its funds are blocked at the Corporate Commercial Bank (KTB, Corpbank).

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Tags: Bulgargaz, gas supplies, Public Procurement Agency, Gazprom, Corporate Commercial Bank, KTB

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