Bulgarian Cabinet to Rescue State Railways without Layoffs - Min

The Bulgarian government will do everything it can to rescue financially troubled Bulgarian State Railways, vowed Transport Minister Danail Papazov.

Tuesday Papazov met railway workers on occasion of the 125th anniversary of the State Railways company (BDZ).

He assured them that the government has no plans to continue the layoff campaign undertaken by previous governments.

But he added that a restructuring of the company will be designed by cabinet in the coming months.

Papazov also said that in September his ministry will call a meeting with all of BDZ's creditors to negotiate restructuring and deferment of the company's loans.

BDZ has loans amounting to some BGN 750 M, 175 of them overdue.

In the past week, Papazov suggested that privatization is not out of the question, a move modifying the cabinet's prior determination not to sell the company.

But Tuesday the minister stressed that the government will do everything possible to salvage the State Railways.

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