Caretaker Finance Minister Georgi Klisurski addressed questions regarding the Bulgarian Development Bank (BDB) and the Investment Programme for Municipal Projects during a joint press conference with caretaker Regional Development Minister Nikolay Naydenov. Klisurski explained that the caretaker Cabinet decided to reduce the BDB’s capital by EUR 1.4 billion, with the funds returning to the State budget, during a weekly meeting on Wednesday. He stated that the timing was strategic, asserting that announcing the decision before the elections would have caused it to become a “political football.”
The caretaker Prime Minister, Andrey Gurov, had previously characterized the BDB as a “piggy bank” that disbursed large loans without adequate collection.
Regarding the capital reduction, Klisurski confirmed that while the cabinet decision is the first step, mandatory approval is required from the Bulgarian National Bank and the European Central Bank. He affirmed that the State, as the sole owner, retains the full right to adjust the bank’s capital as deemed necessary. When questioned about the disbursement of EUR 80 million under the Municipal Investment Programme, Klisurski expressed confidence in the bank’s ability to pay out the funds.
He provided a detailed financial overview, noting that the BDB received a EUR 600 million capital injection in January, while the approved budget disbursement for municipalities totals EUR 460 million. He concluded that the bank possesses a surplus of EUR 140 million relative to the program’s approved funds. He also clarified that the future government will prepare the draft budget, as the current caretaker administration has a limited remaining term.
Topics: #caretaker #minister #cabinet
