The public transport system in Bulgaria's second largest city of Plovdiv has reached a state of financial collapse and is facing closure, Dnevnik daily said on March 12 2010.

The five transport companies operating in the city could cease all activity within days because they have received no subsidies or any form of financial support from the state for the second month running. Hence, owners are considering "locking up their vehicles in the garages",  Dnevnik said.

Reportedly, the state owes the transport companies about 1.5 million leva, but payment has been delayed for unknown reasons. Money for maintenance, as well as sustaining car parks, garages and other facilities, has all but run out.

"The money passes through the municipality, but it is then forwarded to transport companies. That is because we are obliged to work on fixed prices and give preferential treatment to certain groups of people," Alexander Konstantinov, deputy head of municipal economy Plovdiv, was quoted as saying.

Due to lack of subsidies, financial compensation and declining turnover, transport companies face mounting debts to their suppliers and, in turn, an inability to to pay employees on time.

Additionally, the companies cannot cover payments for new equipment purchased. Plovdiv municipality, however, reportedly has the funds required but is unwilling to wire them over to the firms. Hence a protest appears to be imminent within the next few days.