STATE RAILWAYS COMPANY BGN 140 M DEBT MAY BE SETTLED

Business | December 20, 2001, Thursday // 00:00

The Ministry of Transport and Telecommunications will propose to the Government the debt of the Bulgarian State Railways company (BDZ EAD) to the state, which amounts to BGN 140 M, to be settled by expanding the state participation in the capital of the railway company with the same amount. Lyubomil Ivanov, Deputy Minister of Transport, announced at a press conference. The Government adopted several acts concerning the separation of the carrier from the railway infrastructure. According to the Railway Transport Act, the separation will be implemented as from January 1, 2002 via establishing two different companies. One of them will maintain the national railway infrastructure and the other company will be the carrier. The government decided to transform BDZ EAD into a carrier company. It will have capital of BGN 10 M distributed in 1 million shares with nominal of BGN 10. The transformation of the company into a carrier company will be a fact when it gets court registration, Deputy Minister Ivanov said.
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