Caretaker Finance Minister Georgi Klisurski addressed questions regarding the Bulgarian Development Bank’s (BDB) capital reduction and the status of the Municipal Investment Programme. Speaking during a joint press conference with caretaker Regional Development Minister Nikolay Naydenov, Klisurski confirmed that the cabinet approved the withdrawal of EUR 1.4 billion in unused capital from the BDB, with the funds slated to return to the State budget. When questioned about the timing of the decision, Klisurski stated that the caretaker Government preferred to enact the measure after the elections.
He explained that announcing it prior to the vote would have made the issue a “political football.” He reiterated that the minister viewed the BDB as an institution that disburses substantial loans without consistently recovering them. Klisurski confirmed that the State remains the sole owner and disposer of the BDB’s capital. He outlined a two-step process: the initial decision by the cabinet, followed by mandatory approvals from the Bulgarian National Bank and the European Central Bank.
He expressed confidence that both institutions would confirm the BDB’s capital adequacy following the reduction. Addressing funding concerns, the minister noted that the BDB possesses sufficient capital for the Municipal Investment Programme. He detailed that the bank received a EUR 600 million injection in January, while the approved disbursement amount is EUR 460 million, leaving a surplus of EUR 140 million.
He concluded by clarifying that the preparation of the draft budget for future allocations falls to the next elected government, noting the caretaker administration has approximately two weeks remaining.
Topics: #caretaker #minister #cabinet
