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Minister Ivaylo Moskovski: There is currently no investment interest for the privatization of "BDZ-Freight services" Ltd.

12.05.2016

According to information received by the Agency for Privatization and Post-Privatization Control there is currently no investment interest for privatization of "BDZ-Freight services" Ltd. This was announced by the Minister of Transport, Information Technology and Communications Ivaylo Moskovski on a briefing today after a meeting with leaders of trade unions and the national railway carrier.

Minister Moskovski commented that besides the privatization of the company, the Strategy for Development of Railway Transport contains a second alternative for rehabilitation of "BDZ-Freight services" Ltd, which is to continue to its existence as a state company.

The Minister stressed that MTITC has no relation to the appointment and dismissal of personnel in the companies of the system. Each of them has a menagement which takes these decisions. The publicly circulated numbers related to the staff are laid down in preliminary calculations and can not be declared as final, said the Minister. The management of "Holding BDZ" will work with the social partners in order to find the optimal actions for restructuring and rehabilitation of the railway company, transporting cargo. The ultimate goal for us is to have a functioning enterprise, added Moskovski. He was adamant that the process will run with minimal effect on the personal.

The strategy was sent to Brussels and we expect notification of state aid so we can be able to use the income from the concession of Sofia Airport for liquidation of debts of the passenger railway transport operator, as within 4-5 months we will receive the answer of the European Commission, said Ivaylo Moskovski and reminded that the document was supported by all members of the Committee on Transport, Information Technologies and Communications in the National Assembly.

During conversations with Prime Minister Boyko Borisov and Finance Minister Vladislav Goranov, we decided to look for internal resources to repay the debts of the railway. According to him, these loans are state guaranteed, but now they need to be paid, although the current management is not responsible for the huge indebtedness of the company. That is why the decision was taken and the income from the concession of Sofia Airport will be redirect from the Silver Fund for payment of debts as this is enshrined in Art. 101 of the State Budget Law for 2016.

The executive director of "Holding BDZ" Vladimir Vladimirov said that the total debt of the company decreased from 850 million leva in 2009 to 458 million leva in 2016. The debts to creditors for the same period decreased by 641 million leva to 245 million leva at present. Vladimirov added that the trend for the financial condition of "BDZ-Freight" Ltd. is also positive, despite the reduction of its market share. With regard to the optimization of activities Vladimirov said that there are different options and employees can be redirected to other state companies or to private companies, but still everything is under discussion.