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Bulgaria's arrears state debt to businesses slowly being paid

Tue, Aug 31 2010 10:37 CET

byDnevnik.bg

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Bulgaria's arrears state debt to businesses slowly being paid

Photo: Julia Lazarova

Bulgarian companies are not satisfied with the idea of the state paying its debts to them at a seven per cent reduction, according to experts.

As at the end of August 2010, the Government had paid more than 156 million leva in response to 716 requests under the repayment arrangement with the Bulgarian Development Bank (BDB), BDB told Dnevnik.

By the end of June, the state had paid more than 50 million leva in response to 436 requests.

According to Ministry of Finance (MoF) estimates, the Bulgarian state owed about 600 million leva to businesses at the end of 2009.

Requests for repayment should be submitted before the end of September but BDB executive director Dimitar Dimitrov expects that this deadline would be extended.

One of the reasons for the low number of payments is that firms are unwilling to accept the seven per cent discount, according to Svetoslav Glosov, chairman of the Bulgarian Construction Chamber (BCC).

Glosov said that BDB handles the requests quickly and payments are not delayed. No complaints have been filed against administrative hurdles on ministries’ part, Glosov said.

Alternatively, many of the companies could wait until the last minute before submitting payment requests, experts suggested.

Furthermore, July and August are traditionally quiet in terms of all kind of business activity.

As at the end of August, BDB has paid off the debts of eight ministries.

Source: Dnevnik.bg

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