08/02/12 18:49
(http://www.klassa.bg/)

BDZ to go bankrupt in a week

"Unless the state aid for Bulgarian State Railways (BDZ) is renewed, the company will go bankrupt in a week," warned Yordan Nedev, Chief Executive of BDZ, during a meeting with NGOs. He said he had no indication of whether and when the Ministry of Finance will resume payments suspended in early July. The company is entitled to BGN 13-14 mln a month under the terms of its public service contract.

Nedev indicated he is prepared to resign, if he doesn't receive support in his campaign to reform the state railways. "If we hadn't initiated changes in BDZ, the company would have failed months ago. We managed to start necessary repairs and things are now looking more normal," Nedev explained.

According to him, BDZ is gradually bringing repairs of trains back on schedule. The company will turn increasingly to international plants, specialised in railway carriage repairs, opening the field for competition in order to get better prices. Nedev cited as an example the plant in Brasov, Romania, where BDZ had eight of its passenger carriages repaired. The company is also in talks with a major plant in Serbia. "At the same time, factories in Bulgaria are not only acting in collusion to fix prices, but delaying works in breach of their contracts," Nedev explained. The only facility that always completes orders on time is the one in Dryanovo.

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