30.11.2022 Rosen Karadimov: BDB is an instrument for public policies

"My understanding of BDB is that it is an instrument for public policies, not just a lending institution." This is what Rosen Karadimov, Chairman of the Supervisory Board of the Bulgarian Development Bank, said in an interview for Radio Free Europe. The Sofia University law professor was appointed by Innovation and Growth Minister Aleksandar Pulev as an independent Supervisory Member.

"This is the only Bulgarian bank, along with the BNB, which was established by a special law. Minister Pulev asked us to seal the objectives of the bank as spelled out in the law," Karadimov stressed.

He recalled BDB’s priorities: to support small and medium businesses, to overcome regional imbalances and to help the state in public policies.

"The meaning of the encouragement banks and development banks is to develop socially and economically significant projects, but also to act as a buffer in crises," Rosen Karadimov added.

According to BDB’s Supervisory Board Chairman, in the overlay of three consecutive crises, the adequate financial instrument of the state should be used.

He is referring to the Program for Financing of Multiprofile Hospitals for Active Treatment of Systemic Importance for the Regions, which was adopted in July by the Council of Ministers. "It is illogical that a financial instrument of BGN 3 billion in assets should stand aside and not be used," Karadimov insisted.

With the help of the BDB program, troubled hospitals will be able to repay their debts to suppliers. Targeted financial instruments need to be developed for regions such as Northwest Bulgaria or Strandzha, and the criteria and conditions for these will be a priority for the Bank's Governing Board. The Supervisory Board, for its part, has initiated discussions with the National Association of Municipalities in the Republic of Bulgaria (NAMRB) and the FLAG Fund. As a result, the exact parameters for the new financial products are expected to be developed.