Brussels, 14/04/2010 (Agence Europe) - On Wednesday 14 April, the European Commission opened an in-depth investigation into plans by Bulgaria to reschedule a debt of €9.8 million owed to the state by Ruse Industry AD.
On 30 June 2009 the Bulgarian authorities notified the Commission of plans to restructure the debt of Ruse Industry AD, a company that produces metal structures and elements. The proposed measure consists of the deferral and rescheduling of public debt amounting to €9.8 million. The debt owed to the Bulgarian State dates before the accession, in 2007, of the country to the European Union. The origin of the debt, therefore, is not subject to the investigation. However, subsequent subsidies involved in the rescheduling of the debt need to comply with the rules, the Commission notes. At this stage, the Commission has doubts that the proposed measure fulfils the conditions set out in the EU guidelines on state aid for rescuing and restructuring firms in difficulty: for this to happen the long-term viability of the company needs to be demonstrated, appropriate compensatory measures must be taken to counterbalance competition distortions and the company has to contribute to the restructuring in an appropriate manner. In addition, the Commission has concerns whether Ruse Industry is eligible for restructuring aid at all, especially in light of the rule that rescue and/or restructuring aid can be paid out to a company only once every ten years to avoid ailing companies being kept artificially alive through continued state support. In the present case, the Commission points out, it appears that Ruse Industry already benefitted from an earlier rescheduling of its public debt that could constitute state aid. (O.L./transl.rt)