Caretaker Finance Minister Georgi Klisurski addressed questions regarding the reduction of the Bulgarian Development Bank’s (BDB) capital, stating the timing of the decision was strategic. During a joint press conference with caretaker Regional Development Minister Nikolay Naydenov concerning the Investment Programme for Municipal Projects, Klisurski explained that the caretaker Cabinet preferred to announce the capital reduction after the elections to prevent the matter from 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” issuing large loans without ensuring full repayment. Klisurski confirmed the caretaker Government’s authority over the matter, noting that the State is the sole owner of the BDB’s capital and can manage it. He outlined a two-step process: the initial decision by the Cabinet, followed by mandatory approval from the Bulgarian National Bank and the European Central Bank.
The minister expressed confidence that both institutions would confirm the BDB’s capital adequacy even after the reduction. When questioned about the disbursement of EUR 80 million under the municipal program, Klisurski assured the public of the bank’s solvency. He detailed that the BDB possesses EUR 140 million in excess capital relative to the EUR 460 million allocated for the municipal program.
He concluded that while the caretaker Government has limited time remaining, the future administration will be responsible for preparing the draft budget.
Topics: #caretaker #minister #cabinet
What specific political issues were anticipated that necessitated waiting for the elections to announce the capital reduction?