site.btaBulgarian Posts' Capital to Increase by BGN 50 Mln, after EC Approves Company's Recovery Plan

The capital of Bulgarian Posts EAD will be increased by BGN 50 million after the expected approval by the European Commission (EC) of the company's recovery plan. The government made a decision to that effect on Wednesday, June 26.

The capital increase will be formed by a non-cash contribution representing the State's receivable from Bulgarian Posts in the amount of BGN 50 million, together with the interest due. The funds were disbursed on July 7, 2023.

After the approval of the recovery plan by the EC, the amount that the State has previously provided to the company as a loan will be converted into capital. Thus, Bulgarian Posts EAD will move out of its status as a company in financial difficulty. The company will be able to receive full compensation from the State Budget for the universal postal service and for the payment of pensions through post offices.