Financial and business news from Bulgaria

Minister Petkov limits BDB loans to BGN 5 million.

I limit the BDB to not be able to give more than BGN 5 million in credit to anyone. In this way, we ensure that no matter who is in my role, this bank will not change its focus.
This was announced by the Caretaker Economy Minister Kiril Petkov at a briefing after a meeting with the supervisory board of the Bulgarian Development Bank. It was scheduled on the occasion of 1 billion loans distributed to 8 companies. At the meeting, however, only one of the three members of the supervisor - Stamen Yanev appeared. The other two - Mitko Simeonov and Velina Burska, did not come, and in the meantime Petkov announced that he was firing them from the supervisor. However, the changes must be approved by the National Bank.

Tomorrow there will also be a hearing of the eight firms in question to tell how their business plan is developing and how the money will be guaranteed.



"The audit committee as of yesterday is already in the bank, which is an important step because our committee so far did not have access to the loans and documents”, Petkov said. It includes three people with extensive experience and “absolutely independent”. Petkov's idea is for two of them to enter the supervisory board if the BNB's approval is obtained so that they can get acquainted with the activities of the bank from now on. This is Vasil Stonov and Valentin Mihov.

Vasil Stonov was a caretaker minister of economy, graduated from the Wharton Business School in Pennsylvania, MIT and worked at McKinsey and one of the major investment banks in the States.

Valentin Mihov has been in a high leadership position several times in various banks in Bulgaria, Austria and Russia. His brother is one of the best economists outside Bulgaria.

According to Petkov at the moment, loans guaranteed by BDB need individual approval and they do not give much liquidity to commercial banks. Once the new supervisory board is appointed, there will be a complete change to these conditions.

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