site.btaInnovation Minister: Bulgarian Development Bank Will Invest More in Social Infrastructure

Opening Thursday's conference on "Promotional Banks - An Instrument for Better Use of Public Funds," caretaker Innovation and Growth Minister Rosen Karadimov said the Bulgarian Development Bank (BDB) will invest more in social infrastructure and will act as a catalyst of investment in this sector. The forum marks the 25th anniversary of the establishment of BDB.

The event in Sofia focused on the role of national promotional banks in boosting the economy of Europe and around the world. It brought together representatives of ministries, the Bulgarian National Bank, the European Commission and the European Investment Fund, CEOs of promotional banks and export banks of more than 20 EU countries and CEOs of commercial banks in Bulgaria.

Karadimov noted the adoption by the Council of Ministers in April of BDB's strategy for the next three years. Тhe goals are to ensure stability and change in crisis situations by supporting defence and sustainable public policies.

"When we were adopting the Bank's strategy, some critics argued that BDB could not be a social institution. They do not see the point of the Bank's intervention in social, health and education infrastructure," Karadimov said. The minister said that in years of crisis when public resources are limited, it is the promotional banks that should and will intervene in social, health and education infrastructure.

The Bank will intervene heavily in the energy sector by working with the Electricity System Operator to develop and offer a product that will allow public customers - kindergartens, schools, municipalities and hospitals - to get access to a fixed electricity price on clear market terms, without distorting competition.

Karadimov also noted BDB's support for the military-industrial complex in Bulgaria. The Bank has already been financing and providing banking services to the country's military-industrial complex. In the crisis years, when it proved to be the engine of Bulgaria's economic development, it turned out that the military-industrial complex did not get adequate banking services for reasons understandably sensitive to commercial banks. Yet, those reasons are not relevant to the state bank because this is done in implementation of state policy.

The Innovation Minister also noted BDB's support for the health sector with a programme developed to support hospitals. 

Karadimov reported some of the results achieved by BDB. The Group of the Bulgarian Development Bank has supported 27,333 micro, small and medium-sized enterprises. The bank has won the confidence of 22 international partners, from which it has accumulated BGN 2,470 million. He further noted that the Bank has improved its transparency and good governance and is a reliable and competent partner to the European Commission, the EIB Group and the State in implementing special programmes.