site.btaBulgarian Development Bank Faces BGN 145 Mln Loss on Loan to Roadway Construction Company

The Bulgarian Development Bank (BDB) can recover no more than BGN 5 million from a BGN 150 million loan granted to the Roadway Construction company, BDB Executive Director Tsanko Arabadzhiev said here on Wednesday. The Prosecution Service and the Commission for Anti-Corruption (CAC) began searches on Wednesday as part of an investigation into the loan.

Arabadzhiev said that back in 2021 his bank alerted the prosecution service and other competent bodies, after identifying numerous questions that needed answering.

"An investigation is ongoing, and we learn of the developments through the media. Because of the investigation, I cannot comment on the details," he said.

Arabadzhiev added that BDB has attempted to stabilise the company's financial situation over the past few years.

"We are striving to overcome the bank's poor legacy. The transformation began in 2019, and we have successfully transitioned from a bank with 20 borrowers to one serving hundreds of small and medium-sized enterprises. We expect new loans in 2024 to amount to around BGN 200 million," Arabadzhiev said.