site.btaBulgarian Posts' Loss for 2023 Estimated at BGN 60-70 Mln - Analysis

For 2023 the loss for Bulgarian Posts is expected to be in the range between BGN 60 and 70 million.   the deputy minister in charge, Grigori Grigorov, told Thursday the members of the Transport Committee in answer to a question of the MP from GERB-UDF Andrey Runchev regarding the analysis of the company's situation.

At the end of 2022 the company had BGN 40 million in cash and a liability of BGN 79 million to external suppliers, Grigorov pointed out.   By the end of June this year, the company had BGN 6 million in cash, the Deputy Minister explained. According to him, the company's expenditures exceeded the revenues for the first half of the year by about BGN 50 million.  The government granted a temporary loan to cover operating costs. After the present team's arrival at the Transport Ministry, extremely strict financial policies were imposed, the Deputy Minister added.   

It is obvious that if no measures are taken, there is no reason to expect that the company will change its results, the Deputy Minister said.  According to the analysis prepared, the main problem is that there has not been any financial management model so far. 

The analysis shows that between 25-30% of the resources of Bulgarian Posts are currently not being used for any revenue, but at the same time they are being paid as expenses. The solution is to seek market efficiency by services, he added. The Deputy Minister informed that further work is being done to implement measures under the Recovery and Resilience Plan