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 move after the elections. 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 large loans without ensuring full repayment. Klisurski confirmed that the caretaker Government’s actions remain valid. He stated, “The answer is very simple – we wanted the elections to pass and we did it at the first meeting of the Cabinet immediately after the elections.
If we had done it before the elections, it would have turned into ‘a political football’.”
The minister detailed the process, noting that the State is the sole owner of the BDB’s capital and has the authority to adjust it. He advised that the Cabinet decision was the first step, followed by mandatory approvals from the Bulgarian National Bank and the European Central Bank. Klisurski expressed confidence that both institutions would confirm the BDB’s capital adequacy even after the reduction.
Addressing concerns about the disbursement of EUR 80 million for municipal projects, Klisurski assured that the bank has sufficient funds. He calculated that with a EUR 600 million capital injection in January, the BDB possesses EUR 140 million in surplus capital beyond the EUR 460 million allocated for the Municipal Investment Programme. He also noted that the future Government will prepare the draft budget.
Topics: #caretaker #minister #cabinet
