Caretaker Finance Minister Georgi Klisurski addressed questions regarding the recent decision by the caretaker Cabinet to reduce the capital of the Bulgarian Development Bank (BDB). He stated that the timing of the decision was strategic, aiming to ensure the issue would not become a “political football” if announced prior to the scheduled elections. 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.
During a joint press conference with caretaker Regional Development Minister Nikolay Naydenov, Klisurski explained the rationale behind the move. Caretaker Prime Minister Andrey Gurov had previously characterized the BDB as a “piggy bank” that issues substantial loans without ensuring full repayment. Klisurski confirmed that the caretaker Government’s actions remain valid.
He detailed the process, noting that the Cabinet’s decision on Wednesday was the initial step, which requires subsequent approval from the Bulgarian National Bank and the European Central Bank. He asserted the State’s full right to adjust the bank’s capital. When questioned about the disbursement of EUR 80 million under the Investment Programme for Municipal Projects, Klisurski expressed confidence in the BDB’s ability to disburse the funds.
He provided figures showing that the BDB’s current capital reserves exceed the EUR 460 million allocated for the municipal program. The minister concluded by clarifying that the preparation of the draft budget for future allocations falls to the next government, given the caretaker period.
Topics: #caretaker #minister #cabinet
