Bulgarian Posts, the state-owned postal operator, is on the verge of financial collapse after debts ballooned to over 120 million leva (€60 million). The deepening crisis was revealed during a parliamentary transport committee session on proposed postal service law amendments.
Transport Minister Grozdan Karadjov outlined the situation, noting the company has been forced into a cycle of borrowing working capital to cover existing debts. This has created a self-sustaining debt spiral, with monthly interest alone reaching nearly 1 million leva.
The financial strain became publicly visible earlier this month when Bulgarian Post offices stopped processing bill payments for the utility company Energo-pro. Customers were unable to pay through the postal network because funds collected were not transferred, exposing the depth of arrears accumulated over the past year.
Karadjov explained that the crisis is not a matter of corruption but a consequence of inadequate compensation for universal postal services. Under European Commission rules, state support is capped at €15 million annually—far below the actual operating costs of the network.
To cover the gap, Bulgarian Posts repeatedly turned to short-term loans. However, this has only expanded the company’s liabilities, raising doubts about its long-term survival. “This is not embezzlement, but delayed settlements that have spiraled out of control,” Karadjov stressed.
The proposed amendments to the postal law would allow the government to reimburse full universal service costs, bypassing the current ceiling. However, any changes require EU approval under state aid regulations—a process initiated by former transport minister Krasimira Stoyanova but still awaiting progress in Brussels.
Karadjov emphasized that Bulgarian Posts continues to play a crucial social role, particularly in small towns and villages where no private operator offers services. Beyond mail delivery, post offices are responsible for distributing pensions and handling key administrative functions.
Interim financial results from June 2025 showed a net loss of nearly 12 million leva. This follows a modest profit of 773,000 leva in 2024 and a sharp loss of 35 million leva in 2023. Analysts attribute the brief profit to increased financing income rather than operational improvement.
The company has been undergoing a government-backed recovery program since 2023, supported by loans aimed at stabilizing its financial position. Despite this, mounting debts and the lack of structural reform threaten its ability to continue functioning.
Unless urgent measures and EU approval for expanded state aid are secured, Bulgarian Posts risks insolvency. Such a collapse would disrupt essential services relied upon by thousands, particularly in rural communities across Bulgaria.