Ministry of Transport, Information Technology and Communications

Schedule for the Payment of the Salaries to the Railway Workers Was Negotiated with the Syndicates and the National Revenue Agency

The Obligations for July Will Be Paid until Monday and the Advance Payment for September up to 08.10.

The Minister of Transport, Information Technology and Communications Aleksandar Tsvetkov carried out active negotiations with the transport and railway syndicates in Bulgaria in connection with the social tension in the system.

Minister Tsvetkov emphasized the main reasons for the delay of the salaries:

• Decrease of the freight transportations over the corresponding period last year by 45% and of passenger transportation by 7%.
• Uneven spending of the annual subsidy. Consumed greater amounts in the months to July and smaller amounts, remaining for the coming months.
• Early utilization of 80% of the funds for capital expenditures.

The imminent payment of two installments on loans to the banks in November and December - a total value of about 50 million will further aggravate the payment of the salaries. In this situation, the companies are very difficult to pay to the workers.

From side of the Ministry of Transport., Information Technology and Communications decisive measures have been taken to deal with the extremely difficult situation:

• Blocking of the remaining 20% of capital expenditure to divert funds to pay salaries.
• Intensive Negotiations with the Banks-Creditors for deferral for 2010 the obligations of the companies due until the November and December 2009.
• A series of discussions with the Ministry of National Revenue Agency. Understanding from the NRA for emergency recovery of VAT in the amount EUR 4.8 million. This could be used for repayment of obligations to the workers.
• The Minister and the syndicates came to agreement to appeal to the association of the Bulgarian banks for understanding in regard of the difficult Situation of the workers from the railway system and discussion of possibilities for rescheduling of their duties.

The ministry undertook to support the companies for accelerated payment of the obligations to the workers:

• Payment of the obligations for July to the workers in National Company "Railway Infrastructure" to 02/10/2009, and an advance payment for the month of September for National Company "Railway Infrastructure" to 15/10/2009.
• Till 28.09 all obligations to BDZ for July should be paid and till 08.10 the advance payment for September should be also paid.

There are ongoing intensive negotiations from side of the ministry and the syndicates for gradual payment of the remainder of the amounts due to the workers from the rail transport system.  

For additional information:
Vera Deianova, Press Centre,
Ministry of Transport, Information Technology
and Communications
Phone: 940 95 34
E-Mail: vdeianova@mtitc.government.bg