10.10.2023 Minister Milena Stoycheva: Bulgaria needs a modern promotional bank

Bulgaria needs a modern promotional bank to support the development of the economy. We are working on the preparation of an assessment of the structural expediency and effectiveness of the Bulgarian Development Bank, with which to help confirm its position so that it can perform its functions to the maximum extent. This was stated by the Minister of Innovation and Growth, Milena Stoycheva, during the meeting of the Advisory Council to the Supervisory Board of the bank, which was held yesterday.

The meeting was also attended by the Deputy Minister of Innovation and Growth, Martin Gikov, as well as representatives of the Bulgarian Industrial Capital Association (BICA), the Bulgarian Chamber of Commerce (BCC), the Bulgarian Chamber of Commerce and Industry (BCCI), the Union for Private Economic Enterprise (UPEE) and the National Association of the Municipalities in Republic of Bulgaria (NAMRB), which discussed the strategic vision for the activities of BDB until 2026.

Work is underway to review both the activities of the bank and the other financial institutions in the ministry's portfolio, which have similar activities to support small and medium-sized businesses in the country, explained Minister Stoycheva. The goal is to identify their strengths and the opportunities for collaboration between them, she added.

In her words, BDB's promotional functions should not be at the expense of direct lending activities. Milena Stoycheva pointed to the development banks of Poland, Romania, Lithuania and Malta as successful examples. According to her, we will look for that model of a promotional institution that best meets the needs and characteristics of our national economy, the goal of which is to create high added value.

Development banks are an instrument with enormous potential, which should be structured very carefully, the minister said. The European financial institutions, which will assist the Ministry of Innovation and Growth in the preparation of the analysis, will be the guarantor of the transparency of the process.

The representatives of the employers' organizations and NAMRB presented their vision for the bank's activities. According to them, facilitating access to lending resources and compensating market discrepancies is of primary importance for businesses. A change is also needed in the regulatory environment in which institutions such as BDB operate. The topic of the implementation of mandates from international financial institutions was also touched upon, so that BDB can support sectors where commercial banks are absent.