Bulgarian Shipbuilders Demand BGN 200 M Government Aid

Bulgarian shipbuilders want their promised BGN 200 M in state credit from outgoing PM Stanishev (right). Photo by BGNES

The Bulgarian National Shipbuilding and Ship-repairing Association (BULNAS) is demanding a government bailout aid of BGN 200 M.

BULNAS has sent a letter to Prime Minister Sergey Stanishev protesting against his recent statement that the government would allocate a credit of BGN 50 through the national fund for supporting shipbuilding.

This has been announced by Svetlin Stoyanov, BULNAS Chair, as quoted by the Pari Daily. Stoyanov reminds that the Stanishev government had promised to provide BGN 200 M for the creation of a state guaranteed fund to support shipbuilding, and needed to realize its commitment.

The Bulgarian shipbuilding companies are alarmed that the financial crisis had hit the sector even worse than they expected; the demand for new ships had declined by 90% between October 2008 and March 2009.

According to Stoyanov, a state credit of BGN 200 M would be sufficient for building 14-15 ships over three years - 2009-2011, whereas BGN 50 M would be enough only for a ship and a half.

He also said the interest that the Bulgarian government has determined on shipbuilding credits was 8%, whereas in the rest of the EU it ranged between 2% and 3%.

The shipbuilders hardly expect to get any reply to
their demands before the Parliamentary Elections on July 5.

 

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