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 concerning the Investment Programme for Municipal Projects, Klisurski confirmed that the cabinet approved the withdrawal of EUR 1.4 billion in unused capital, which will be returned to the State budget. He explained the timing of the measure, noting that the caretaker Government wanted the elections to conclude before making the announcement to prevent the issue from becoming a “political football.” Klisurski affirmed that the caretaker Government’s actions remain valid.
He characterized the BDB as a financial entity that issues substantial loans but sometimes struggles with recoveries. The minister clarified that the State is the sole owner of the BDB’s capital and retains the authority to adjust it. While the cabinet decision was the first step, Klisurski emphasized that subsequent approval from the Bulgarian National Bank and the European Central Bank is mandatory.
He expressed confidence that these institutions will confirm the BDB’s capital adequacy even after the reduction. Addressing funding for municipal projects, Klisurski reassured that the BDB has sufficient capital. He calculated that with a recent EUR 600 million injection and the EUR 1.4 billion reduction, the bank retains significant capital reserves relative to the EUR 460 million allocated for the Municipal Investment Programme.
He concluded by stating that the future Government will prepare the draft budget for funds under the regular budget.
Topics: #caretaker #minister #cabinet
