Municipalities Owe Local Construction Cos over 93 Mln Euro

Municipalities Owe Local Construction Cos over 93 Mln Euro

The Bulgarian municipalities' debts to local construction companies exceed 180 million levs ($119 million/93 million euro), according to the country's Construction Chamber.

A number of construction companies have lodged with local courts claims over their dues and, in some cases, have had municipal accounts blocked, the state-run Bulgarian News Agency reported on Friday, quoting the chamber's chairman Svetoslav Glossov.

In contrast, the government has no debts to construction companies and makes all payments in due time, he added.

 Some 90% of construction works in the country are conducted under public procurement contracts, as almost all are backed by the EU.

In the first half of the year, the construction industry posted a 7% decline compared to the same period of 2011, according to the chamber. The construction companies in the national registry dropped to 4,200 from 6,000 five years ago. Foreign companies in this sector number 1,000.

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