Bulgarian Prime Minister, Boyko Borisov, announced Wednesday that the government was going to initiate paying all delayed payments of sums it owed to businesses starting December 1, 2009.
This is how Borisov responded to recent sharp criticism on part of President Georgi Parvanov, the opposition Socialist Party, and trade unions that the delay of payments of the government to firms which had completed or had been working on public projects was very big, and was going to cause company bankruptcies and new mass-scale layoffs.
President Parvanov has stated that the total amount of delayed payments owed to companies had already reached about 1%-1,5% of the GDP.
“I accept those estimates and comments with the slight remark that all those payments should have been done by the previous government. We are mustering all of our income in order to start paying out the companies. Delay of payments means not having paying for the cleaning of last year’s snow,” PM Borisov said, reminding the blatant, in his words, case in which the Stanishev government had delayed a payment of BGN 132 M for snow cleaning services for the winter of 2008/2009.
Borisov explained that all sums due to private businesses were to be paid in December 2009, and in January-February 2010. In his words, this process will start with the construction companies since Bulgaria’s construction sector has been hit especially hard by the economic crisis and has started to lay off dozens of thousands of workers.
A meeting of the government and the Construction Chamber has been scheduled for Friday, November 27, 2009, in order to discuss those issues. This is seen as an emergency measure demanded by the leading construction companies and the chamber on part of the Bulgarian state.
This is how Borisov responded to recent sharp criticism on part of President Georgi Parvanov, the opposition Socialist Party, and trade unions that the delay of payments of the government to firms which had completed or had been working on public projects was very big, and was going to cause company bankruptcies and new mass-scale layoffs.
President Parvanov has stated that the total amount of delayed payments owed to companies had already reached about 1%-1,5% of the GDP.
“I accept those estimates and comments with the slight remark that all those payments should have been done by the previous government. We are mustering all of our income in order to start paying out the companies. Delay of payments means not having paying for the cleaning of last year’s snow,” PM Borisov said, reminding the blatant, in his words, case in which the Stanishev government had delayed a payment of BGN 132 M for snow cleaning services for the winter of 2008/2009.
Borisov explained that all sums due to private businesses were to be paid in December 2009, and in January-February 2010. In his words, this process will start with the construction companies since Bulgaria’s construction sector has been hit especially hard by the economic crisis and has started to lay off dozens of thousands of workers.
A meeting of the government and the Construction Chamber has been scheduled for Friday, November 27, 2009, in order to discuss those issues. This is seen as an emergency measure demanded by the leading construction companies and the chamber on part of the Bulgarian state.
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