2024-07-03 15:00:53
The European Commission announced that it approves the granting of state aid of up to 25.51 million euros to the company “Bulgarian Posts”. The move will allow the company to restore its long-term viability while minimizing distortion of competition, the announcement said.
On December 21, 2023, Bulgaria notified the EC of aid for the restructuring of the company in the form of conversion of the recovery loan into equity in support of a plan for structural changes. The plan contains measures to rationalize the activity of “Bulgarian Post”, optimize the branch network and reduce costs. The company will develop or provide new services to expand access for citizens in remote areas, the commission added.
The restructuring measures are aimed at overcoming the difficulties that led to the company’s financial difficulties, including reducing employee costs. Bulgarian Post is expected to contribute around 26.78 million euros of its own contribution to restructuring costs through bank loans, interest savings and project financing. The company will have to provide access to its network to other operators in the field of postal services.
EU rules provide that the aid will be granted for a period of up to six months, after which it must either be reimbursed or the state must submit to the EC a plan for restructuring the company. In order for the aid to be approved, the plan must provide for the preservation of viability without additional state support, as well as for the company to contribute enough to cover the costs of its restructuring, BTA reported.
The approved aid will help Bulgarian citizens to have access to universal postal services at financially advantageous prices, noted on this occasion the Deputy President of the EC Margrethe Vestager, quoted in the announcement.