Agreement between Bulgarian Railways, Lenders Imminent

Negotiations with creditors of financially troubled Bulgarian State Railways are advancing just fine, according to the company's CEO.

"As early as January-February, we expect to sign the agreement with bondholders and bank lenders," said in an interview for the news agency "Focus" Kristian Krastev, CEO of the State Railways company, "BDZ Holding."

Krastev further informed of a meeting that happened 10 days ago in Frankfurt with German KfW bank, adding that immediately after the New Year there was a planned meeting with bondholders in Vienna.

"The payment of debts of Serbian and Macedonian Railways owed to BDZ would help a great deal the Holding to cover part of its obligations to creditor banks with which we are in serious negotiations for several months," said Krastev.

BDZ has loans amounting to some BGN 750 M, 175 of them overdue. The main portion of them is liabilities to the KfW bank and bondholders.

Former Prime Minster Boyko Borisov's government planned to sell the profitable BDZ Freight Transportation to cover the financially troubled company's debt.

The Bulgarian Socialist Party, on whose ticket the current cabinet was elected, had vowed not to privatize the Railways, a vow reiterated by PM Plamen Oresharski, however, in the summer, the Minister of Transport Danail Papazov suggested that the government might give up its resolve.

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