The European Commission has authorised under EU state aid rules, state financing worth BGN249 million (approximately €128 million) for the Bulgarian railway operator BDZ EAD. The aid is in line with EU rules on rescue aid, because it is limited in time and scope. The Commission approved the measure temporarily, until it can take a position on the restructuring plan to be submitted by Bulgaria within maximum six months. "The Commission could agree to the rescue of BDZ EAD as the company's sudden disappearance would lead to serious disturbances in the Bulgarian economy and given the very limited impact the measure will have on competition in the Internal Market," Joaquín Almunia, Commission Vice-President in charge of competition policy, said.
BDZ EAD is the 100 % state-owned Bulgarian railway carrier, operating on both freight and international passenger railway markets. It ensures 80 % of the domestic freight transport and 100 % of the passenger transport. The Commission authorised a short-term measure to tackle liquidity problems and enable BDZ EAD to pay creditors and properly maintain its rolling stock pending the implementation of a restructuring plan. The Commission found the measure to be in line with its guidelines on rescue and restructuring of companies in difficulties. In particular, the aid amount is limited to what is needed to keep the company in business over the next six months. Moreover, the Bulgarian authorities have committed to submit in maximum six months a restructuring plan capable of ensuring the future viability of the services currently provided by BDZ EAD.
The non-confidential version of the decision will be made available under the case number in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.
News source: EU Press Room link: article
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