Bulgaria’s Levski Sofia crawls out from under its suffocating debt mountain

April 11 – Bulgaria’s Levski Sofia is no longer under the threat of bankruptcy, according to club owner Nasko Sirakov.

In a specially arranged press conference, Sirakov (picutred) gave an update on Levski’s past financial year that has seen it settle nearly BGN 13 million (€6.5 million) of debt.

Breaking that sum down, BGN 4 million (€2 million) are current liabilities, BGN 2.5 million (€1.25 million) was paid to settle overdue debts, and BGN 6.3 million (€3.15 m) to Bulgaria’s National Revenue Agency.

“PFK Levski has paid a principal of BGN 6,342,000 to the National Revenue Agency. Currently, for the first time, Levski does not owe a single cent bearing interest. Last year at this time, we were accumulating BGN 2,500 in interest per day. During this one year, current liabilities have been paid in the amount of 4 million BGN and 2.5 million have been paid to distributors and suppliers” said Sirakov.

Last year, Levski agreed with the National Revenue Agency to reschedule debts to the state, which have been accumulating for years.

Currently the club still has to pay the interest on the principal sum, which amounts to BGN 3 million (€1.5 million). However, these payments are not urgent and according to the contract with the NRA, they can have until 2027 to settle.

At the same time, Levski has to pay nearly BGN 2 million to the Municipality of Sofia, a debt which is expected to be rescheduled.

The interest to the NRA and the obligations to the Sofia Municipality do not affect the club’s license for the next season.

“The interest that is rescheduled until 2027 has nothing to do with the license as well the obligations to the municipality. Our obligations to the Sofia Municipality from 2016 until now are about BGN 2 million. This amount will also be spread over 3 years. 5,762,000 (€ 2.9 million) is the total non-interest bearing liability. Levski does not accumulate a single lev of new liabilities, clearing all current ones,” said…

Source link : https://www.insideworldfootball.com/2024/04/11/bulgarias-levski-sofia-crawls-suffocating-debt-mountain/

Author : Paul Nicholson

Publish date : 2024-04-11 00:30:18

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