site.btaEuropean Commission Approves ЕU 25.51 Mln Restructuring State Aid for Bulgarian Posts

The European Commission has approved, under EU State aid rules, Bulgaria's plans to grant postal operator Bulgarian Posts restructuring aid for up to EUR 25.51 million (BGN 50 million), the Commission said in a press release on Tuesday. The measure will enable the company to restore its long-term viability while minimizing competition distortions.

Bulgarian Posts received a rescue loan from Bulgaria of approximately €26.5 million (BGN 50 million), after approval by the Commission under EU State aid rules in May 2023. On December 21, 2023, Bulgaria notified to the Commission restructuring aid in the form of conversion into equity of the rescue loan, supporting a plan for the restructuring of Bulgarian Posts.

The restructuring plan sets out a package of measures for streamlining Bulgarian Post's operations, optimizing its network and reducing costs. In parallel, Bulgarian Posts will develop or provide services such as telemedicine or administration through its ubiquitous network on behalf of other public entities, bringing such services closer to citizens in remote areas not well served.

Bulgarian Posts make an own contribution to restructuring costs of around €26.78 million (BGN 52.49 million) in the form of bank loans, interest savings and project financing. The measures enable Bulgarian Posts to return to viability through the implementation of its restructuring plan. Bulgarian Posts will invest into modernizing and optimizing its network and reduce staff costs, whilst reducing its reliance on the declining letter post market through new activities and services provided in post offices.

The Commission concluded that the Bulgarian measures are in line with EU State aid rules.