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Investors show no interest in Bulgaria’s national rail freight operator

Bulgaria’s Agency for Privatization and Post-Privatization Control revealed that no investor has shown interest in the privatisation of BDZ-Freight services. The information was  provided by Ivaylo Moskovski the Minister of Transport, Information Technology and Communications (MTITC), during a meeting with the leaders of trade unions and the national railway operator.

In this situation BDZ-Freight services will continue exist as a state-owned company. This is the second scenario in the Strategy for Development of Railway Transport, besides the privatization of the company, explained  minister Moskovski.

“The strategy was sent to Brussels and we expect notification of state aid so we can be able to use the income from the concession of Sofia Airport for liquidation of debts of the passenger railway transport operator, as within 4-5 months we will receive the answer of the European Commission”, said Ivaylo Moskovski.

“During discussions with Prime Minister Boyko Borisov and Finance Minister Vladislav Goranov, we decided to look for internal resources to repay the debts of the railway. These loans are state guaranteed, but now they need to be paid, although the current management is not responsible for the huge indebtedness of the company. That is why the decision was taken and the income from the concession of Sofia Airport will be redirect from the Silver Fund for payment of debts as this is enshrined in Art. 101 of the State Budget Law for 2016”, he added.

The executive director of Holding BDZ Vladimir Vladimirov said that the total debt of the company decreased from 850 million leva in 2009 to 458 million leva in 2016. The debts to creditors for the same period decreased by 641 million leva to 245 million leva at present. Vladimirov added that the trend for the financial condition of BDZ-Freight is also positive, despite the reduction of its market share.

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