Bulgaria's government will write off a BGN 127.5 M debt owed to the state by indebted state railway company, a senior Transport Ministry official said February 25, quoted by Reuters. The Bulgarian State Railway Company was restructured last month into two separate state firms -infrastructure and a railway carrier, which put an end to its monopoly in the sector. According to Deputy Transport Minister Lyubomir Ivanov the debt will be transformed into a capital rise distributed in shares with a par value of BGN 10."The decision will help the financial stabilisation of the railway carrier and allow it to obtain loans from commercial banks," said Ivanov, who is in charge of railway transport. The debt owned by BDZ to the state had been accumulated mostly through unpaid value added tax, Ivanov said. The decision must be approved by the Parliament in order to come into force.