BDB capital increases by 4 billion leva, money is mainly for renovation and municipal projects
The Council of Ministers decided today to increase the capital of the Bulgarian Development Bank (BDB) by 4 billion leva. This was announced by Finance Minister Temenuzhka Petkova after the end of the meeting, quoted by BTA and BNT.
She explained that one of the main goals of the bank according to the law is to provide instruments for financing public projects and investments that are a priority for the country's economy.
The funds for increasing the BDB capital do not affect the deficit in any way. This is an operation that is related to the financing of the budget balance and does not affect the deficit in any way. The goal is related to the bank's long-term ability to provide financing for important projects for the economic sector that the state has prioritized, she was categorical.
The expectations for investments are for the construction of industrial zones, in the water supply and sanitation sector, green energy and energy efficiency, defense and security.
The overall effect will be an increase in tax revenues from investments and an increase in dividends, it became clear from the words of the Minister of Finance.
In order to stop any attempts at speculation, after the capital increase is recorded, these funds will be stored in an account for foreign funds of the Ministry of Finance. This approach will allow these funds to be serviced in an account of the BNB, this will provide publicity and transparency and will guarantee the independence of the bank, Temenuzhka Petkova explained.
In May, it became clear that the BDB will support municipalities with a total resource of 3.4 billion leva in connection with the implementation of the investment program for municipal projects and the national program for energy efficiency of multi-family residential buildings.
The amendments to the Municipal Investment Program were prepared by the Ministry of Finance based on proposals from the mayors of municipalities. With the proposal to amend the Investment Program for Municipal Projects, the estimated amount of projects for the entire period becomes 8,184.6 million BGN, including 3,879.2 million BGN for 2025 and 4,305.4 million BGN for 2026 - 2027 and covers 3,472 projects.
