10% of Bulgaria Building Firms Set for Bankruptcy
Bulgaria's Minister of Regional Development, Rosen Plevneliev, has announced that 10% of the building firms in the country are likely to go bankrupt in the next few months over the global financial crisis
Plevneliev said that the building industry is in dramatic situation, with between 500 and 600 of a total 5500 construction companies in serious financial distress.
He continued that his Ministry will try to revive the industry by providing new contracts for road construction in October and November. He added that the Road Agency’s budget has increased by BGN 700 M.
In connection with winter cleaning Plevneliev indicated that BGN 35 M would be provided for snow removal and BGN 17 M for maintenance of roads. The funds will be provided by the Ministry of Finance.
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Only 10%? Construction contractors go in and out of business all the time. Standard operating procedure. A job is completed, there is no new job in the near future--lay off all the workers and close shop until you get another job. There is no point in squandering your profits paying workers to sit around with nothing to do.