The Sofia municipal council will raise its stake in the capital’s heating utility by pumping in up to 55 million leva to help pay out debt to state-owned gas supplier Bulgargaz.

The move will diminish the stake held by the Economy and Energy Ministry below the blocking quota and comes despite mayor Boiko Borissov urging the Cabinet to take over the utility's debts and management.

Economy and Energy Minister Petar Dimitrov welcomed the council’s decision, saying it would help the struggling utility.

Borissov said the decision was a bad one, but which had to be made under severe pressure from the media, adding that his abrupt U-turn came after the ministry made no answer to the council’s suggestion for the Government to boost its stake to about 70 per cent and pay all outstanding debt.

Bulgargaz has threatened turning the tap on Toplofikatsiya Sofia unless it paid in full its debt, estimated at 60 million leva.

Source:Dnevnik.bg