Municipalities owe more than BGN 170 mln to construction businesses

“Municipalities owe Bulgarian construction businesses between BGN 170 mln and BGN 180 mln,” Svetoslav Glosov, Chairman of the Bulgarian Construction Chamber, said in an interview for BNR. According to him, these liabilities are not likely to be paid off soon for lack of funds in municipal budgets. By comparison, in 2011, the receivables of construction companies amounted to BGN 180 mln. “Last year, some 80% of the orders were financed with European money and the situation will be the same this year,” added Glosov.

Glosov also commented the expectations of Minister of Regional Development and Public Works Lilyana Pavlova for BGN 2 bn to enter the construction business in 2013. “We expect these funds to be directed primarily to domestic construction firms, although there are many foreign companies as well,” he said.

According to Mr. Glosov, construction is always an indication of what a government has done. According to him, a considerable amount of European money has been absorbed. “Something positive happened in the construction sector, although this position might not be shared by small- and medium-sized building companies,” stated Glosov.

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