Caretaker Finance Minister Georgi Klisurski addressed the timing of a decision to reduce the capital of the Bulgarian Development Bank (BDB) during a joint press conference with caretaker Regional Development Minister Nikolay Naydenov. Klisurski explained that the caretaker Cabinet preferred to announce the measure after the elections to avoid it 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. This decision was formalized during the Council of Ministers’ weekly meeting on Wednesday.
Caretaker Prime Minister Andrey Gurov had previously characterized the BDB as a “piggy bank” that disbursed large loans without ensuring full repayment. Klisurski affirmed the validity of the caretaker government’s actions. He stated that the State is the sole owner of the BDB’s capital and possesses 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 both institutions would confirm the BDB’s capital adequacy following the reduction. When questioned about the disbursement of EUR 80 million for municipal projects, Klisurski assured that the funds would be paid out.
He detailed the bank’s financial standing, noting that with a recent EUR 600 million injection and the EUR 460 million allocated for the municipal investment program, the BDB retains a surplus of EUR 140 million beyond the required disbursement amount. He concluded by stating that the future government will prepare the draft budget, as the caretaker administration has approximately two weeks remaining.
Topics: #caretaker #minister #cabinet
Caretaker Finance Minister Georgi Klisurski stated during a joint press conference with Regional Development Minister Nikolay Naydenov that the caretaker Cabinet opted to delay the reduction of the Bu