Caretaker Finance Minister Georgi Klisurski addressed questions regarding the reduction of the Bulgarian Development Bank’s (BDB) capital, stating the decision was timed to avoid political controversy. Speaking during a joint press conference with caretaker Regional Development Minister Nikolay Naydenov, the minister explained that the caretaker Cabinet preferred to announce the measure after the elections to prevent it from 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” issuing large loans without ensuring full repayment.
Klisurski affirmed the validity of the caretaker government’s actions. He detailed the process, noting that the Cabinet’s decision on Wednesday was the initial step, which requires subsequent approval from the Bulgarian National Bank and the European Central Bank. He emphasized that the State, as the sole capital owner, retains the full right to adjust the bank’s capital as deemed necessary.
Regarding the bank’s liquidity for the Municipal Investment Programme, Klisurski expressed confidence in the BDB’s ability to disburse the allocated funds. He calculated that despite the EUR 1.4 billion reduction, the BDB maintains sufficient capital. He pointed out that the bank received a EUR 600 million injection in January, exceeding the EUR 460 million budgeted for the municipal programme by EUR 140 million.
The minister concluded by stating that the future government will prepare the draft budget, acknowledging the caretaker government’s remaining two weeks of work.
Topics: #caretaker #minister #cabinet
