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. Klisurski explained that the caretaker Cabinet decided to reduce the BDB’s capital by EUR 1.4 billion, with the proceeds returning to the State budget. He stated that the timing was strategic: the decision was made after the elections to prevent the issue from becoming a “political football.” He affirmed that the caretaker Government’s actions remain valid.
Regarding the capital reduction, the minister noted that the State is the sole owner of the BDB’s capital and has the authority to adjust it. He outlined a two-step process, requiring subsequent approval from the Bulgarian National Bank and the European Central Bank. Klisurski expressed confidence that both institutions would confirm the bank’s capital adequacy following the reduction.
When questioned about the disbursement of EUR 80 million under the municipal applications, Klisurski assured the public that the BDB has sufficient funds. He calculated that after receiving a EUR 600 million capital injection in January and having an approved disbursement budget of EUR 460 million, the bank retains a surplus of EUR 140 million relative to the current program’s needs. The minister also detailed the BDB’s current capital standing, noting that despite the reduction, the institution’s capital remains significantly higher than the previous year.
He concluded by stating that the future Government will prepare the draft budget, acknowledging the caretaker Government’s remaining two weeks of work.
Topics: #caretaker #minister #cabinet
It seems like the focus is more on managing the political narrative than on the actual financial details of the BDB.