Ultimatum to Reform Bulgaria's Collapsing Railways Expires

Business | August 6, 2012, Monday // 13:36|  views

Bulgarian State Railways BDZ CEO Yordan Nedev says it is logical for him to resign as the company is collapsing. Photo by Sofia Photo Agency

The deadline, given to the ailing Bulgarian State Railways BDZ Holding by Finance Minister Simeon Djankov to come up with new reforms to save the company, is expiring Monday.

The plan is the condition to reinstate State subsidies to BDZ. The management of the company has kept silent after the ultimatum.

Earlier, BDZ Passenger Transport CEO Yordan Nedev said Bulgaria's transport authorities were going to form an emergency body in order to figure out a way to rescue the collapsing Bulgarian State Railways BDZ.

He has warned that the lack of funding would lead to another 50% layoffs, eliminating 200 passenger trains and even stopping all transport of passengers by mid-August. Nedev further hinted he is ready to resign ASAP.

The State subsidy for BDZ of BGN 14 M was halted a month ago over the default on a World Bank loan in the amount of BGN 150 M.

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Tags: railways, Bulgaria, transport, Passenger Services, Transport Ministry, Finance Ministry, state railways, BDZ, Bulgarian State Railways, layoffs, Yordan Nedev, World Bank, state subsidy, loan, bankruptcy, Simeon Djankov, finance minister, Ivaylo Moskovski, Transport Minister


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