site.btaCaretaker PM: Government Grants BGN 250 Mln to Maritsa Iztok Mines

This morning the caretaker Government granted BGN 250 million a year to Maritsa Iztok Mines EAD. An additional BGN 50 million will be provided in the short term in line with a resolution adopted earlier on Thursday by the National Assembly. This became clear after the meeting of caretaker Prime Minister Dimitar Glavchev and caretaker Energy Minister Vladimir Malinov with representatives of protesting miners and energy workers, the Cabinet press office said on Thursday.

The state will gradually increase its shareholding in the capital of Bulgarian Energy Holding (BEH) EAD through a financial contribution. The funds will be used to increase the capital of Maritsa Iztok Mines EAD to ensure all the necessary activities and measures to restore the affected areas and bring the Iztok Maritsa Coal Basin to a sustainable condition.

The resource will be earmarked for the next 4-5 years, Energy Minister Vladimir Malinov stressed. He explained that this will allow Maritsa Iztok Mines EAD to continue its work without social tension and in compliance with environmental requirements. The Energy Minister pointed out that the financial situation of Maritsa Iztok Mines is extremely deteriorated. At the moment, the company's accounts contain only BGN 6 million, with BGN 27 million per month needed for salaries alone. There are no earmarked resources, Malinov added. This was caused by both the market situation and the withdrawal of the company's profits over the past year.

The Energy Minister also pointed out that the investment program of the company is to be amended, as the implementation and control will be implemented jointly with the trade unions. This will serve as an additional guarantee for the public and transparent spending of funds.