The Cabinet will write off the debt of the Bulgarian State Railway Company (SRC), which totals BGN 128 M by transferring them to the statute capital of the company, amendments to the Railway Transport Act, adopted by Parliament, envisage. Transforming the company’s debt is the only way, in which the Cabinet may assist in carrying out the rehabilitation strategy of the railways. According to experts from the Transport Ministry this practice is popular in developed countries as well. The opposition strongly opposed to increasing the SRC’s capital because of concerns over the sum earmarked from the budget. They also raised objections against the proposed two-year moratorium on licenses, which in their opinion will hinder the development of a competitive market of railway transport. MPs from the majority pointed Denmark as a country in which there is a five-year moratorium. Petur Mutafchiev, MP from Simeon II National Movement, proposed the idea of the moratorium, which aims to prevent the bankruptcy of the state-owned company after its division into infrastructure and transportation units.

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