Debt of State Railways reaches BGN 800 mln

“The Bulgarian State Railways (BDZ) owe some BGN 800 mln and a large part of this debt is not being serviced,” said Minister of Finance Simeon Djankov, after his meeting with the management of the holding, with Minister of Transport, Ivaylo Moskovski and the trade unions, initiated by Prime Minister Boyko Borissov.

Djankov claimed he would agree with receiving a loan from the World Bank for the railways, once it is clear how how the companies would service the interest on it.

Possibilities for additional revenues from the sales of equipment for scrap and more freight transport were also discussed. Simeon Djankov expects that the railways would secure some BGN 30 mln from the sale of old cars and locomotives up to Friday. "Negotiations between the trade unions and the management on the development of the Railways will continue until the last working day of the week," said Minister of Transport Ivaylo Moskovski.

At the meeting between the trade unions and representatives of the management, a final decision was not taken on any of the problems of the Railways - their development, funding and the needed staff reductions.

"So far, there is no agreement on the layoffs which should be undertaken," said President of Confederation of Independent Trade Unions in Bulgaria, Plamen Dimitrov and added that the workers in BDZ retained their readiness for strikes. "The collective agreements are a key issue for the guarantees, which should be achieved during the future restructuring of BDZ," said Dimitrov.

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