Minister Says Caretaker Cabinet Waited for Elections to Reduce BDB Capital to Avoid Turning Topic into “Political Football”

Caretaker Finance Minister Georgi Klisurski addressed questions regarding the reduction of the Bulgarian Development Bank’s (BDB) capital and the status of the Investment Programme for Municipal Projects. Speaking during a joint press conference with caretaker Regional Development Minister Nikolay Naydenov, Klisurski stated that the caretaker Cabinet timed the decision to reduce the BDB’s capital by EUR 1.4 billion to occur after the elections. He explained that announcing the measure before the vote would have given it undue political attention.

The decision, approved by the Council of Ministers on Wednesday, mandates that the withdrawn funds will return to the State budget. Caretaker Prime Minister Andrey Gurov had previously characterized the BDB as an entity that issues substantial loans without ensuring full recovery. Klisurski affirmed that the caretaker Government’s actions remain valid.

He clarified that while the Cabinet initiated the capital reduction, the process requires subsequent approval from the Bulgarian National Bank and the European Central Bank. He emphasized the State’s sole ownership and inherent right to adjust the bank’s capital. Regarding the disbursement of EUR 80 million from the Municipal Investment Programme, Klisurski expressed confidence in the BDB’s ability to pay out the allocated funds.

He provided figures indicating that the BDB possesses sufficient capital, noting that the EUR 460 million approved for municipal disbursements is covered by the bank’s current reserves, leaving a surplus of EUR 140 million relative to the program’s needs. The minister concluded by stating that the future government will prepare the draft budget, leaving the caretaker administration with approximately two weeks of work.

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