Student Rest and Sport faces 18.7 million BGN loss and mass facility closures

An audit by the Bulgarian National Audit Office has revealed that 108 out of 134 holiday bases managed by the state-owned company ‘Student Rest and Sport’ are non-functional. The closures are attributed to extremely poor living conditions or a lack of interest in accommodation. Only 26 bases remain operational, with 22 closed facilities located on the Black Sea coast and 86 located in inland and mountain regions across 21 provinces.

The company is facing a severe financial crisis, with accumulated losses reaching 18.7 million BGN as of the end of 2024. This deficit exceeds the company’s equity by 36.6%. Additionally, the company owes 6.9 million BGN to the Ministry of Education and Science, a debt that represents over 92% of its total liabilities and exceeds 140% of its annual revenue.

The audit highlights that the unused properties have become a financial burden, generating costs for security, taxes, and maintenance without providing sufficient rental income. These structural, financial, and legal issues threaten the company’s ability to fulfill its social mission of providing affordable student and child recreation.