site.btaGovernment Postpones Aid to BDZ in Order to Find Comprehensive Solution

Sofia, June 6 (BTA) - The government postponed approving additional payments from the central executive budget to the Transport Ministry budget which would finance a loan to Bulgarian State Railways (BDZ), Finance Minister Vladislav Goranov said on Wednesday.

The reason for the postponement is that a comprehensive solution to the problem will be sought in the next 10 days or so, Goranov said, adding that intensive negotiations are underway with BDZ's creditors. The aim is to achieve a better result for BDZ regarding a 2007 bond loan. "Talks are going on about whether the creditors could make some concession," he said.

Taking a journalist's question, the Finance Minister said he is ready to support a bidding procedure for new rolling stock for BDZ, but he added that it will be good if the procedure is conducted on the same day as the bidding for the Sofia Airport concession. He hopes the government considers the Sofia Airport concession in the next two or three weeks.

Goranov noted that the proceeds which BDZ earns through its services cover only 20 per cent of its costs. The rest is paid for with taxpayers' money.