Regional Development Ministry to wire 101M leva to construction firms

Regional Development Ministry to wire 101M leva to construction firms

Regional Development Minister Rossen Plevneliev has informed the new head of the Bulgarian Construction Chamber (BCC), Svetoslav Glossov, that 101 million leva remains to be wired to Bulgarian construction firms, the private Bulgarian television channel bTV reported.According to Plevneliev, since the turn of the year about 147 million leva had already been paid to various construction firms through the BCC. Under a new payment mechanism, through the Bulgarian development bank, the minister said that out of a total debt of 139 million leva, 34 million leva had been paid. The paperwork for a further four million leva is being processed.Apart from these funds, however, the firms are awaiting another 150 million leva from different municipalities, Glossov told the bTV. Glossov said that most of those debts are predominantly owed to small and medium-sized construction firms, money "essential for their ultimate survival". Such small and medium-sized companies account for 90 per cent of Bulgaria's construction industry, Glossov said.About 1500 construction firms are expected to discontinue their registration in 2010 with the BCC. This is not solely attributed to bankruptcy, but due to the unstable and negative environment in the sector, which will force many companies to cease operations temporarily and stay out of the market, Glossov said.In 2009, about 1050 construction firms were scratched off the BCC registrar.

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