site.btaNational Railway Operator Receives Lv 60 Mln-Plus in State Aid to Repay Debts

Sofia, August 2 (BTA) - Bulgaria's Council of Ministers has extended over 60 million leva in State aid to the Bulgarian State Railways (BDZ) to help the company repay its debts, Transport, Information Technology and Communications Minister Ivaylo Moskovski told journalists on Wednesday.

Moskovski said that this became possible after an approval by the European Commission in June.

The Transport Minister said that 42 million leva will cover a State guarantee to the World Bank and 20 million will go to repay a bond issue to five banks. "The outstanding debt is over 150 million leva, but these 20 million leva will serve as a commitment to allow the remaining debt to be rescheduled," said Moskovski. Debt repayment will help the company to stabilize.

The Transport Minister said that the aid will be repaid by the end of 2018. "I hope that in the autumn we'll procure new rolling stock, which will justify the large investments made in rail infrastructure," said Moskovski.

Another matter discussed by the Council of Ministers on Wednesday was co-financing for the construction of the third line of Sofia's Metro underground railway in the direction of the Ovcha Koupel neighbourhood. The ministers decided that 15 million leva in co-financing will be provided by the central government to Sofia Municipality, Moskovski said. The allocation ensures that all deadlines will be met.