Caretaker Finance Minister Georgi Klisurski addressed questions regarding the Bulgarian Development Bank (BDB) and the Investment Programme for Municipal Projects during a joint press conference with caretaker Regional Development Minister Nikolay Naydenov. Regarding the BDB, the caretaker Government approved the withdrawal of EUR 1.4 billion in unused capital, with the funds returning to the State budget. Klisurski explained that the timing of this decision was strategic; he stated the caretaker Cabinet preferred to announce it after the elections to prevent the issue from becoming a “political football.” He reiterated that the State is the sole owner of the BDB’s capital and has the authority to adjust it.
The minister noted that while the Cabinet’s decision was the first step, subsequent approval from the Bulgarian National Bank and the European Central Bank is mandatory. He expressed confidence that the BDB’s capital adequacy would be confirmed despite the reduction. Addressing the municipal funds, Klisurski confirmed that the BDB is proceeding with the disbursement of EUR 80 million approved under the Regional Development Ministry’s applications.
He detailed the bank’s financial standing, noting that with a capital increase of EUR 600 million and a total allocated budget of EUR 460 million for the municipal program, the BDB maintains a surplus of EUR 140 million beyond the approved program funds. The minister also provided context on the bank’s capital levels, stating that even after the reduction, the BDB’s capital remains significantly higher than the previous year. Klisurski concluded by clarifying that the future Government will handle the draft budget, as the caretaker Government has limited remaining time.
Topics: #caretaker #minister #cabinet
The timing of the BDB capital reduction seems highly dependent on avoiding political scrutiny rather than pure financial necessity.