Caretaker Finance Minister Georgi Klisurski addressed questions regarding the recent 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 explained that the caretaker Cabinet timed the decision to reduce the BDB’s capital to occur after the elections. He stated that announcing the measure before the vote would have created unnecessary political controversy.
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 issues substantial loans but struggles with repayments. Klisurski asserted that the caretaker Government’s actions remain valid.
He detailed the process, noting that the Cabinet’s decision was the initial step, requiring subsequent approval from the Bulgarian National Bank and the European Central Bank. He confirmed the State’s sole ownership and right to adjust the bank’s capital as deemed appropriate. Addressing concerns about the disbursement of EUR 80 million under the Municipal Investment Programme, the minister expressed confidence in the BDB’s ability to pay out the allocated funds.
He calculated that given a EUR 600 million capital injection in January and the EUR 460 million approved for municipal disbursements, the bank retains a surplus of EUR 140 million beyond the program’s needs. He concluded by noting that the future government will prepare the draft budget, as the caretaker period for the cabinet is nearing its conclusion.
Topics: #caretaker #minister #cabinet
It seems the timing of these financial changes is more about political messaging than actual fiscal necessity.