“Bulgarian Posts” is teetering on the edge of financial collapse, burdened with debts surpassing 120 million leva (60 million euros) to various partners. The persistent shortfall in operating funds has forced the company to repeatedly rely on working capital loans, effectively borrowing what it already owes. This cycle has created a self-perpetuating debt system, with monthly interest accumulating at around 1 million leva, compounding the financial strain over time.
Transport Minister Grozdan Karadjov presented the situation to the parliamentary transport committee while discussing proposed amendments to the postal services law, which aim to partially offset the company’s deficits. However, uncertainty remains regarding whether the European Commission will approve state aid under EU regulations.
The issue of the post office’s mounting debts became particularly visible after it was revealed that Bulgarian Post offices ceased processing payments for “Energo-pro” at the start of September. Customers have been unable to settle their bills at post offices because the funds collected were not forwarded to the utility company. Energo-pro described the arrears accumulated over the past year as substantial.
Karadjov explained that the compensation provided by the state has long been insufficient to cover operational costs, capped at 15 million euros by EC rules. To manage the shortfall, the post office has relied on working capital, which has steadily increased the debt burden. He emphasized that this situation does not involve embezzlement but reflects the delayed settlements between the postal operator and its partners.
The proposed amendments to the postal law are designed to allow full reimbursement of universal service costs, surpassing the current EC-imposed ceiling. Nonetheless, the approval of state aid notification remains necessary, a process initiated under former Minister Krasimira Stoyanova. Karadjov stressed that post offices perform critical functions, including pension disbursement in smaller settlements and other administrative services, which no other entity is willing to provide.
Interim financial statements for June 2025 indicate a net loss of nearly 12 million leva, following a modest profit of 773,000 leva in 2024 and a loss of 35 million leva the year before. The temporary improvement in 2024 was largely due to increased financing income. Since receiving a government loan in 2023, Bulgarian Posts has been undergoing a formal recovery procedure, aiming to stabilize its financial position while continuing to provide essential services across the country.
