Three out of four Greek firms in Bulgaria are 'ghost companies'

Thousands of companies in Bulgaria that exist only on paper appear to have been launched by Greeks in recent years for tax-evasion purposes, as a survey by the University of Bristol has shown that of the 14,000 Greek-owned enterprises in the neighboring country only 3,000 are actually active.

The exodus began a few years before the outbreak of the crisis in 2008 and reached its peak after Greece's entry in the bailout mechanism.

In the 1990s, the penetration of the Bulgarian market by Greek banks and construction companies constituted expansion and investment in a growing economy. Today, however, the flight of local firms across the country's northern border is seen as "economic outflow."

The decision to relocate to Bulgaria has apparently vindicated those who made it out in time, as they managed to escape the impact of the recession and the problems of liquidity,...