31.05.2024 BDB's large credit exposures

On the occasion of the comments that have appeared once again, related to the large loans taken by the current management of the Bulgarian Development Bank (BDB), the management of the bank provides the following information within the limits of what is allowed by law.

On assuming office in November 2022, the Bank will provide the following information. The BDB's Supervisory Board caught eight large loan exposures and mandated a review of the actions taken to manage them.

The Supervisory Board requested a report from the Board on all large loans. After a detailed analysis of their management, action protocols were approved in case of possible adverse developments on each of them.

As a result of adequate action on large loan exposures in arrears totalling more than BGN 1 billion, BGN 260 million have been repaid by payment to date. One of the exposures has been repaid in full. Five of them are regularly serviced. In respect of two exposures which are non-performing, the Bank has taken recovery action. For one of them, the Board of Directors and the Supervisory Board have ascertained the ineffectiveness of the enforcement method chosen to date for the collection of the receivables and have decided to switch to another enforcement method for the collection and realisation of the collateral. On the second exposure, based on detailed analyses and consultations, the Bank took action and negotiated a voluntary realisation of the collateral as a means of repayment. The value of the assets securing the debt exceeded more than one and a half times the amount of the debt.