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How Come the Ministers Did Not Know about the Loan at Issue by BBR?


Suspending the board of the Bulgarian Development Bank is a good step towards restoring public confidence, said Bulgarian MEP Radan Kanev in Facebook.


According to Kanev, however, several very important questions remain. For example, what happens to the collection company's $ 75 million loan? The MEP also wonders how were the Minister of Economy and the Minister of Finance unaware of the loan, and who exercises control on behalf of the principal.

"If this is how the state bank's money is spent (and it is spent even worse...), how can we give 700 million from the budget to it? What are the safeguards against theft in times of crisis and epidemic? When will the state authorities, and especially the prosecutor's office, finally follow in the footsteps of CTB money? Because the link between those 75 million and KTB's refinanced bad loans is pretty clear ... ", said the MEP. In his words, these answers and the inevitable resignation of Vladislav Goranov and Emil Karanikolov will at least partially restore confidence.

Earlier, Prime Minister Boyko Borisov ordered the board of directors of the Bulgarian Development Bank to be dismissed. The Prime Minister said he was outraged by what the BDB had done, having in mind granting of a loan to an unknown collection company of BGN 75 million.

"I feel indignation at what the Bulgarian Development Bank has done. The finance minister told me that no one had consulted him. "I have ordered the Economy Minister, who is the principal of the bank, to dismiss the CEOs and the board immediately," the PM said.

According to the Chief Executive Officer of BDB, Stoyan Mavrodiev the loan of BGN 75 million extended to the collecting company "Saint George Group" is a standard refinancing operation for two commercial banks. The ultimate goal is to get rid of old bad debts, which will strengthen their liquidity and allow them to focus on financing new clients.

However, according to the company's report for 2018, it has assets of only 57,000 BGN, 2,000 BGN revenue and zero profit.

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