Government to Extend Lv 224 Lv for Recovery of National Railway Carrier BDZ

Sofia, June 20 (BTA) - Following an authorization by the European Commission, the Bulgarian government will extend 224 million leva to see through reforms of the National Railway Carrier, Deputy Transport Minister Velik Zanchev told a news briefing on Tuesday.

Zanchev said that BDZ has become a national priority and has proven its reliability. The Transport Ministry will begin negotiations with the Finance Ministry to agree the schemes under which the aid will be extended.

Zanchev said that the debts of the BDZ were amassed between 2005 and 2007. In 2007, a second bond loan of 234 million leva was raised, of which 150 million leva are outstanding. Some 14 million leva annually are paid in penalty interest on all BDZ loans.

Zanchev said that the introduction of the toll tax will put rail and road transport on equal footing.

In September 2017 the railway carrier will purchase some 15 motor-coach trains. Currently experts are considering the necessary rolling stock so that the BDZ can look like a European company and provide adequate services. Over time the company plans to invest up to 400 million leva to renew its stock.

The 224 million leva in state aid will go towards payments to creditors and bond holders and 97 million leva will be spent to pay debts to the National Railway Infrastructure Company, said Zanchev. The BDZ will also rely on the concession fee from Sofia Airport to pay its debts.

On online ticket sales system will become operation in 2019.