site.btaMinister: "Internal Compensatory Mechanisms" Will be Sought for Bulgarian Railways after Lowered State Subsidy

Minister: "Internal Compensatory Mechanisms" Will be Sought for Bulgarian Railways after Lowered State Subsidy


Rousse, on the Danube, December 18 (BTA) - The subsidy for the
Bulgarian State Railways (BDZ) will be reduced by 40 million
leva and the money will go instead as a targeted capital
transfer for repayment of the company's loans, Transport
Minister Ivaylo Moskovski told reporters here Thursday. "We will
seek internal compensatory mechanisms to avoid extreme
decisions such as the suspension of services and job cuts," he
said by way of comment on a remark by the CEO of BDZ Holding,
Vladimir Vladimirov, that the reduced subsidy might cause
significant job cuts and suspended train services.

Moskovski explained that an attempt will be made for "a softer
approach": "there will be debates with the local authorities and
the unions on what compensatory mechanisms could be found
within the BDZ system".

The Transport Minister said that there is an idea to set up a
bus company within the BDZ structure to carry the passengers of
loss-making train services. He warned though that putting this
in practice will take time: at least until next year.

He said that "there will have to be some optimization" of jobs
but only after talks with the unions. Asked whether the job cuts
could affect 1,500 people, he said that this is an extreme
scenario, adding "certainly nobody wants to see this happen" and
"a better way will hopefully be found".