Financial and business news from Bulgaria

Ex-Minister Luchezar Borissov on the scandal surrounding the BDB: Someone misled Minister Kiril Petkov

“Maybe someone misled Minister Petkov regarding the structure of the Bulgarian Development Bank (BDB) portfolio and about the other things that were shared yesterday.”
This is what former Minister of Economy and former member of the BDB Supervisor Luchezar Borissov said in an interview for the show “Face to Face” on bTV on the occasion of yesterday's information about the bank by the caretaker Economic Minister Kiril Petkov.

Petkov announced that he will appoint a check in BDB due to the fact that it has supported 8 companies, of which 4 connected, with nearly BGN 1 billion, and by statute and by law this bank should help small businesses. The Ministry of Economy released the names of the eight companies today.

According to Borissov probably in this way information was disclosed, which is bank secrecy.

A bank with a full banking license, such as BDB, provides loans to micro, macro, environments and large companies. These are not subsidies, these are not cash grants, these are loans with very serious collateral being serviced. The rates are good for BDB against the background of the interest rates in the other banking sector — they are much higher”, commented the former economic minister.

He added that the assets of BDB are not BGN 1.4 billion as the state's paid capital, but they are BGN 4 billion. Also that 99.2% are micro, small and medium-sized enterprises as the number of borrowers from BDB (62% of the financial resource). As a financial resource — 23% are loans to large companies. In addition, BGN 1.5 billion of the bank's asset is available — around BGN 400 million are in BNB, about BGN 500 million are receivables from commercial banks and over BGN 600 million in securities.

“The state of the bank in terms of behavior and attitude towards each of the borrowers, including those referred to by Minister Petkov, have been subject to scrutiny by many international institutions”, said Luchezar Borissov.