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). Speaking during a joint press conference with caretaker Regional Development Minister Nikolay Naydenov, Klisurski stated that the timing of the decision was strategic, aiming to prevent the matter from becoming a “political football” before the 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.
Caretaker Prime Minister Andrey Gurov had previously characterized the BDB as a “piggy bank” that disbursed large loans without adequate collection. Klisurski asserted that the caretaker Government’s actions remain valid. He explained that the initial step for the capital reduction was the Cabinet’s decision on Wednesday, followed by mandatory approvals from the Bulgarian National Bank and the European Central Bank.
He emphasized that the State, as the sole owner, retains the authority to adjust the bank’s capital as deemed appropriate. Regarding the BDB’s liquidity for the Municipal Investment Programme, Klisurski expressed confidence in the bank’s ability to disburse funds. He noted that the BDB received a EUR 600 million capital injection in January, exceeding the EUR 460 million approved for municipal disbursements.
He further detailed that even after the EUR 1.4 billion reduction, the BDB’s capital level remains substantially higher than previous years, confirming ample resources for the programme. He concluded by noting that the future Government will prepare the draft budget for funds under the regular budget.
Topics: #caretaker #minister #cabinet
