EC approves 26 mln euro restructuring state aid for Bulgarian Posts

The restructuring plan includes measures to streamline Bulgarian Post's operations, optimise its network and reduce costs, the EC said in a statement. Additionally, Bulgarian Posts will develop or provide services like telemedicine and administration for other public organisations, enhancing service access for citizens in remote areas.

Bulgarian Posts received a 50 million levs rescue loan from Bulgaria, which was approved by the EC in May 2023. In December, Bulgaria notified the Commission of its plan to convert the loan into equity as part of the restructuring effort.

The EC has approved the current measure under state aid rules, specifically its guidelines on rescue and restructuring aid, enabling EU member states to support companies in difficulty under strict conditions. Aid may be granted for up to six months, after which it must be reimbursed or a restructuring plan must be submitted to the Commission.

For restructuring aid to be approved, the plan must ensure the company's viability without continued state support and its contribution to the restructuring costs, as well as address competition distortions through compensatory measures.

The aid will help Bulgarian Posts provide services of general economic interest, including universal postal obligation. The restructuring will address the company's financial issues by modernising and optimising its network, reducing staff costs and diversifying services beyond the declining letter post market.

Bulgarian Posts will contribute some 52.5 million levs to the restructuring costs through bank loans, interest savings and project financing.

To limit competition distortions in the Single Market, Bulgarian Posts has committed to granting network access to other operators in both universal and non-universal postal services.

(1 euro = 1.95583 levs)