17.05.2021 Position of Bulgarian Development Bank

Bulgarian Development Bank carries out its activities in accordance with the BDB Act and the BDB Articles of Association, and also performs such activities as provided for by Article 2 (1) and (2) of the Credit Institutions Act, under a full banking license issued by the Bulgarian National Bank. The priorities in the Bank’s activities have been complied with the policies of the governments of the Republic of Bulgaria and for the Bank to gain profit as a commercial bank performing its main function to support small and medium-sized enterprises (SMEs).

The Bank strictly observes the current laws and regulations in the Republic of Bulgaria and the EU, including the special BDB Act. The activities of the Bank and any other bank in Bulgaria are carried out under the supervision of the Bulgarian National Bank, which defines BDB as a consistently important credit institution for the Bulgarian banking system and the European regulatory authorities. At the end of March 2021, the Bank had the highest capital adequacy ratio in the country (38%) and a BBB rating by the leading rating agency Fitch Ratings with a Positive Outlook, a rating equal to the sovereign rating of the Bulgarian state.

BDB has developed long-term relationships with many international creditors and partners and has built a reputation of a reliable and stable partner. The Bank receives funds from them based solely on its good financial position and reputation. The Bank is not a budget enterprise, but for specific purposes it is financed from the state budget (including the guarantee programs in connection with the situation caused by COVID-19), and grants loans using predominantly Bank's own resources, resources acquired from its commercial activities over the years, as well as resources provided under contracts signed under programs with many leading international credit institutions.

BDB has always cooperated with regulatory authorities. Therefore, the Bank will provide full assistance to the Principal, the Ministry of Economy, in connection with the forthcoming inspection.