KREMIKOVTSI Steelworks failed to transfer to BDZ - the Bulgarian state-owned railway carrier - the due sum of money for transportation of freight on Friday, Transport Minister Nikolai Vassilev told bTV.
"The amount is not big, only 700 000 leva, but if that is an indication of how the steelworks is going to pay its debts, the situation will get complicated again," Vassilev said.
In the middle of August the two companies signed an agreement after 10 months of negotiations. The document covered the fees due for transportation during the period September 2002 to December 2003. The price was not announced. The agreement includes a note that allows BDZ to acquire Kremikovtsi property if the payments are overdue, Vassilev said. If necessary, BDZ will become the biggest metal producer in Bulgaria, he said.
According to Kremikovtsi, there is some misunderstanding. Every Tuesday the steelworks issues invoices that have to be paid within a seven-day term. This is how they explain the delay in payment. According to the mill's spokesman Todor Hristov, there is a misunderstanding and there is no failure to meet payment commitments.
The BDZ was not able to pay its workers because of debts of other companies to it. Kremikovtzi is one of the biggest debtors. Employees had strikes in Bourgas and threatened to block the railways if the salaries were not paid to them in due time. After the agreement with Kremikovtsi the BDZ management promised to start paying its workers regularly.
Recently BDZ and the split-off company in charge of the railway infrastructure signed an overdraft agreement with three previously selected banks, First Investment Bank, Economic and Investment Bank (EIBank) and Roseximbank, under which the banks are to pay salary worth 11.6 million leva to the railway employees on debit cards.
"The amount is not big, only 700 000 leva, but if that is an indication of how the steelworks is going to pay its debts, the situation will get complicated again," Vassilev said.
In the middle of August the two companies signed an agreement after 10 months of negotiations. The document covered the fees due for transportation during the period September 2002 to December 2003. The price was not announced. The agreement includes a note that allows BDZ to acquire Kremikovtsi property if the payments are overdue, Vassilev said. If necessary, BDZ will become the biggest metal producer in Bulgaria, he said.
According to Kremikovtsi, there is some misunderstanding. Every Tuesday the steelworks issues invoices that have to be paid within a seven-day term. This is how they explain the delay in payment. According to the mill's spokesman Todor Hristov, there is a misunderstanding and there is no failure to meet payment commitments.
The BDZ was not able to pay its workers because of debts of other companies to it. Kremikovtzi is one of the biggest debtors. Employees had strikes in Bourgas and threatened to block the railways if the salaries were not paid to them in due time. After the agreement with Kremikovtsi the BDZ management promised to start paying its workers regularly.
Recently BDZ and the split-off company in charge of the railway infrastructure signed an overdraft agreement with three previously selected banks, First Investment Bank, Economic and Investment Bank (EIBank) and Roseximbank, under which the banks are to pay salary worth 11.6 million leva to the railway employees on debit cards.
