EC Clears State Aid to Bulgarian State RailwaysBulgaria in EU | September 9, 2014, Tuesday // 14:27| views
Photo by EPA/BGNES
The European Commission has authorized state aid for the restructuring of the Bulgarian State Railways (BDZ) company, according to a letter of the Directorate-General for Competition to the caretaker Transport Minister Nikolina Angelkova.
Bulgaria requested the stance of EC on the matter in June due to the impossibility to reach agreement with the creditors of the state-owned railway company.
The reply of the EC indicates that it is admissible to write-off a debt of BGN 172 M accumulated by the company before Bulgaria's accession to the EU, according to the press office of Bulgaria's Ministry of Transport, as cited by dnevnik.bg.
Last week Bulgarian caretaker Transport Minister Nikolina Angelkova presented in Brussels additional analyses and motives for the fast-tracking of a state aid notification which would allow the extension of talks with the creditors of BDZ, at the same time ensuring that the company would keep functioning normally.
"A meeting with the creditors and debenture holders of the company will be held to discuss the opportunities for rescheduling the debt. The first step has already been made because the EC says in this letter that there is no breach of competition legislation and the state aid to BDZ can be allocated," Angelkova said.
She specified that the monthly payments to the creditors of the company were being paid on a regular basis.
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