A recent report in the Sofia Echo says that 300 British and Irish investors claim to have lost nearly six millions pounds sterling, or 13.2 million Bulgarian leva, in the Alpine resort of Bansko.In a joint letter sent to Kafeneto.net the investors explain that they fear that their investments are likely lost because the future of the enterprise in Bansko now appears very uncertain.
The group claims that a combination of "bad circumstances, poor management and rampant corruption is to blame."
In its defence, the company promoting the development, Bulgarian Development UK, has argued that the problem lies with alleged corruption in Bulgaria and the global economic downturn. Investors, however, claim there has been financial mismanagement and that the company has used investors' apartments as guarantees to finance other projects.
Bulgarian Development UK has insisted that they were obliged to adopt such measures in order to pay the builder, MRI Construction, the construction arm of MRI Overseas Properties based in the Costa del Sol. Bulgarian Development UK claims that complications ensued after MRI had terminated construction operations, even though it had been paid fully by the customers in advance.
The investors have established the Pirin Park Resort Residential Association to conduct negotiations on behalf of affected clients.
The full article is available here.
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