Bulgaria PM: No Blacklisting Private Companies over Govt Debt

Business | February 19, 2010, Friday // 18:24|  views

Bulgaria's PM Boyko Borisov in Parliament Friday. Photo by BGNES

Bulgaria’s government is not going to compile a list of private companies that refused to renounce 10% of the sums owed to them by the state.

This has been stated by Prime Minister, Boyko Borisov, regarding the state policy of asking firms to which the government owes money for completed projects to give up 10% of the sum if they want to get paid in February-March 2010.

This policy is the brainchild of Finance Minister Simeon Djankov, who has made it clear it was brought about by the shortage of funds in the state budget. He has also emphasized the fact that if private contractors did not agree to renounce 10% of the sums owed to them by the state, they would still get paid but this might take several months.

Djankov has also explained that the state had to delay paying its dues to private companies in the fall of 2009 because otherwise it would have generated a large budget deficit for 2009, and would not meet the criteria for joining the ERM II, the Eurozone waiting room.

Bulgaria’s Prime Minister Borisov has stressed that everybody would get paid what they are owed but the ones that agreed to give up 10% would be getting their money as fast as possible.

He stated that no firms were privileged, and that only the lack of funds in the state budget had made the state resort to such actions.

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Tags: Boyko Borisov, Prime Minister, Simeon Djankov, finance minister, state debt, debts


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