Caretaker Finance Minister Georgi Klisurski addressed the recent decision by the caretaker Cabinet to reduce the capital of the Bulgarian Development Bank (BDB). Speaking during a joint press conference with caretaker Regional Development Minister Nikolay Naydenov regarding the Investment Programme for Municipal Projects, Klisurski explained the timing of the move. He stated that the caretaker Cabinet opted to announce the capital reduction after the elections to prevent the issue 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” that disbursed large loans without ensuring full collection. Klisurski confirmed the validity of the caretaker Government’s actions while in office. The minister clarified that the State is the sole owner of the BDB’s capital and retains the authority to adjust it.
He outlined that the Cabinet’s decision was the initial step, followed by mandatory approvals from the Bulgarian National Bank (BNB) and the European Central Bank (ECB). Klisurski expressed confidence that both institutions would confirm the BDB’s capital adequacy post-reduction. Addressing concerns about fund disbursement, Klisurski assured that the BDB possesses sufficient capital.
He noted that the bank received a EUR 600 million injection in January, exceeding the EUR 460 million approved for the Municipal Investment Programme. He concluded that the BDB maintains significant capital reserves relative to its disbursement obligations.
Topics: #caretaker #minister #cabinet
