Bulgarian Min Hints of U-Turn on Railways Privatization

Business | July 30, 2013, Tuesday // 13:11|  views

Photo by the Bulgarian Ministry of Transport

Bulgarian Minister of Transport Danail Papazov has suggested that the government might give up its resolve not to privatize the Bulgarian State Railways (BDZ) company.

"We do not rule ou the option to give BDZ Passenger Services on concession or privatize it," said Papazov in an interview for TV7 Tuesday.

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.

What is even more unusual is that Minister Papazov has mentioned the passenger, and not the freight unit of BDZ, which was being prepared for privatization by Bulgaria's previous parliamentarily elected cabinet.

Ex PM Boyko Borisov's government planned to sell the profitable BDZ Freight Transportation to cover the financially troubled company's debt.

In the nterview Tuesday, Papazov said that the financial situation is worse than he believed initially

"At present, BDZ's debt amounts to somr BGN 700 M, 175 of them overdue," said he.

"Now we are not talking about healing the company, but rather about rescuing it," commented the minister.

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Tags: BDZ, freight transportation, Passenger Services, Bulgarian State Railways, Danail Papazov, Plamen Oresharski, Boyko Borisov, debts, privatization


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