The leadership of the Podkrepa Labor Confederation proposes that the State, which is the largest creditor of Kremikovtsi Steel Mill, get an equity position in exchange for cancellation of the debt and take over the management of the mill. The purpose is to keep its basic production capacity and pull Kremikovtsi out of the crisis so that it could be sold at a good price and in a relatively good condition, the Podkrepa press center said. This is one of the proposals submitted to the prime minister.

Before it went private, the government provided financial aid of nearly 699 million leva for Kremikovtsi.

Podkrepa has yet another proposal - to find an operation for drawing up a rehabilitation plan for the steel mill. The TU insists that the prime minister make a decision about Kremikovtsi by May 1 at the latest.

Commenting on the suggested debt for equity swap and transfer of the Kremikovtsi management to the State for BTA, Deputy Economy and Energy Minister Nina Radeva said such a scheme would involve a huge amount of unbudgeted expenditures that would be difficult to apply financially, having in mind the implementation of the revenue side of the executive budget. Admitting the scheme is possible theoretically, Radeva said a conclusive decision could be made after comparing the pluses and minuses of all possible solutions.

In their letter to the prime minister the Podkrepa leaders insist on drafting a special government decree that should include the establishment of a fund of at least 250 million leva envisaging a severance pay for laid-off workers at the rate of 30 average wage.

Podkrepa recalls that nearly 1,500 people are expected to be laid off, and that the Kremikovtsi workers have not been paid their wages since November 2008. The debts of the steel mill to Bulgargaz and the National Electricity Company are increasing, and the bankruptcy estate is also growing, the Podkrepa letter says. As of April 1, the Kremikovtsi workers will be staging everyday protests, Podkrepa says.

Source: BTA