BDZ will grant a loan from the World Bank
BDZ is a Bulgaria’s national railroad operator. On September 30 2011, the country’s Finance Minister Simeon Dyankov said the World Bank will grant a loan once BDZ raises sufficient additional income allowing it to at least pay the interest on its existing credit facilities. The country’s Finance Minister Simeon Dyankov made the statement after a meeting among government officials, Prime Minister Boiko Borissov, trade unions and the BDZ’s management.
The World Bank is “enthusiastic” to sign a final agreement for providing the loan, Simeon Dyankov also said. Because of the significant debts of about 800 million of BDZ leva, Boiko Borissov was delaying the procedure. Simeon Dyankov said the railway carrier has not served the loans since 2008. The World Bank and the Bulgaria’s Government signed a memorandum for extending 480 million leva to BDZ several months ago. It would be used for redeeming the company’s outstanding obligations. However, the funds allocation is contingent on the launch of reforms and also the carrier’s restructuring in the sector.
The additional earnings could be secured from many things, such as cast-off cars and locomotives or sales of unnecessary. It is as well as from the sale of the BDZ’s holiday houses.