Government Provides 14 Million Leva for Huge Military Medical Academy Debt
Sofia, Bulgaria -
The government has given a 14 million BGN subsidy to the Ministry of Defense so that the Military Medical Academy can pay its debt to the Bulgarian Bank for Development. In 2016 part of the debt (54.6 million BGN) was paid by the hospital itself.
Even back then the government had to spend additional 20 million to help the institution pay this portion of its debt. Now, with the last subsidy of 14 million, the Ministry of Defense will help the Academy pay its debt fully.
Four years ago, the Academy was the state hospital with the highest debt - 227 million BGN - 113 million of which was interest. Each month the hospital had between 5 and 8 million BGN new debt. The decision made then was for the staff to cut down on expenses and start paying what they had to. Within just two years, the expenses dropped by 25%
The manager of the Academy - prof. Ventsislav Mutafchiiski reminded that three years ago a concession for over 50 million was made. Luckily, the bank was willing to cut down on some of the interest. By the end of 2016, the hospital had only 14.3 million BGN in debt.
Prof. Mutafchiiski explained that the Academy has practically paid all of its debts by 2017 and is currently not generating any new debt. In fact, the institution is now able to pay its bills on time and avoid financial difficulties.