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 government approved the withdrawal of EUR 1.4 billion in unused capital, with the funds slated to return to the State budget. Klisurski stated that the timing of this decision was strategic, explaining that the caretaker Cabinet waited until after the elections to prevent the issue from becoming a “political football.” He affirmed that the caretaker Government’s actions remain valid.
Klisurski noted that the State is the sole owner of the BDB’s capital and retains the authority to adjust it. He outlined a two-step process: the initial cabinet decision, followed by mandatory approvals from the Bulgarian National Bank and the European Central Bank. The minister expressed confidence that regulators would confirm the bank’s capital adequacy even after the reduction.
In response to inquiries about the disbursement of EUR 80 million under the Municipal Investment Programme, Klisurski confirmed the bank’s financial standing. He calculated that the BDB possesses sufficient capital, noting that the EUR 600 million injection in January, combined with the EUR 1.4 billion reduction, leaves the bank with substantially more capital than the EUR 460 million allocated for the municipal program. The caretaker minister concluded by stating that the future Government will draft the regular budget, acknowledging that the current caretaker administration has approximately two weeks remaining in its term.
Topics: #caretaker #minister #cabinet
The explanation about timing the BDB reduction feels like an attempt to manage political optics rather than address the core financial issues.
What specific measures are planned to reduce the Bulgarian Development Bank’s capital?