Economic crisis drives one in four Bulgarian builders out of business
05 October 2009
More than a quarter of construction companies in Bulgaria have closed their businesses in the nine months up to September 2009, according to construction chamber data.
As many as 1550 out of 5820 firms have not confirmed registration with the construction chamber as at September 1, which is a mandatory requirement to continue operations, executive director Ivan Boikov said.
He ruled out the possibility of illegal operations because all investors require registration documents.
Builders are, however, hired on home repairs without any licence presentation.
Next year, 2010, will be the year of survival and cut-throat competition for the construction industry, Regional Development Minister Rosen Plevneliev said.
Orders and volumes are dwindling faster than anticipated. The sector contracted by 14.5 per cent year-on-year in July, extending a previous slide of 8.6 per cent in June, according to official statistics.
Boikov said that the slump was even bigger, at 30 per cent.
All six-month figures including number of building permits, the combined floor space and foreign investments, were decreasing, Plevneliev said.
Source: Dnevnik.bg
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