Caretaker Finance Minister Georgi Klisurski addressed questions regarding the recent decision to reduce the capital of the Bulgarian Development Bank (BDB). Speaking during a joint press conference with caretaker Regional Development Minister Nikolay Naydenov, Klisurski explained the timing of the move, stating that the caretaker Cabinet preferred the decision to pass after the elections to avoid it becoming a “political football.”
The government approved the withdrawal of EUR 1.4 billion in unused capital from the BDB, with the funds slated to return to the State budget. Caretaker Prime Minister Andrey Gurov had previously characterized the BDB as a “piggy bank” that issues substantial loans but struggles with collection.
Klisurski confirmed that the caretaker Government’s actions remain valid. He outlined that the cabinet decision on Wednesday was the initial step, noting that subsequent approval from the Bulgarian National Bank and the European Central Bank is mandatory. He asserted that the State, as the sole capital owner, retains the authority to adjust the bank’s capital as deemed necessary.
Addressing concerns about disbursements for the Investment Programme for Municipal Projects, Klisurski expressed confidence in the BDB’s ability to disburse the approved EUR 80 million. He provided figures indicating that the BDB’s current capital reserves exceed the EUR 460 million allocated under the extension budget for the program, leaving a surplus of EUR 140 million. The minister concluded by noting that the future Government will prepare the draft budget, as the caretaker administration has a limited operational period remaining.
Topics: #caretaker #minister #cabinet
The explanation about avoiding “political football” doesn’t really address why the timing was necessary now.