24.11.2022 Rosen Karadimov to BNT: Development banks are extremely important in times of crisis

The Bulgarian Development Bank is a public organization and must have a public policy. This was stated by the Chairman of the Supervisory Board of the bank, Rosen Karadimov, to BNT. He emphasized that in our country only the Bulgarian National Bank and BDB were established by a special law that clearly spells out their goals and mission. Support for small and medium-sized businesses and the promotion of economic growth are only part of them. In order to effectively reach the sectors in need, the Supervisory Board is committed to the creation of an Advisory Board of SME organizations, representatives of the startup ecosystem and employers, whose proposals will optimize the process of creating new financial products.

"The role of development banks in crisis conditions is extremely important, and currently the state is trying to deal with at least three crises," Rosen Karadimov reminded. He gave the example of the health system and the debts that hospitals accumulate and that the Ministry of Health has to pay.

"A mechanism with the participation of BDB can solve the cyclical problem – if the Ministry opens an account in the bank through which debts are paid and BDB gets involved with additional financing of the debt," the Chairman of the Supervisory Board said. After analyzing and verifying the debts, BDB becomes a creditor to the hospitals, pays the suppliers by discounting (reducing) the debt and helps their recovery, while the market mechanism of relations will not allow debts to accumulate again.

The new leadership is also starting talks with the National Association of Municipalities in the Republic of Bulgaria. Depending on their desire and capabilities, the bank can provide targeted support and loans for enterprises in the underdeveloped regions of the country, such as Northwestern Bulgaria.

The Bulgarian Development Bank is a public organization and must have a public policy. This was stated by the Chairman of the Supervisory Board of the bank, Rosen Karadimov, to BNT. He emphasized that in our country only the Bulgarian National Bank and BDB were established by a special law that clearly spells out their goals and mission. Support for small and medium-sized businesses and the promotion of economic growth are only part of them. In order to effectively reach the sectors in need, the Supervisory Board is committed to the creation of an Advisory Board of SME organizations, representatives of the startup ecosystem and employers, whose proposals will optimize the process of creating new financial products.

"The role of development banks in crisis conditions is extremely important, and currently the state is trying to deal with at least three crises," Rosen Karadimov reminded. He gave the example of the health system and the debts that hospitals accumulate and that the Ministry of Health has to pay.

"A mechanism with the participation of BDB can solve the cyclical problem – if the Ministry opens an account in the bank through which debts are paid and BDB gets involved with additional financing of the debt," the Chairman of the Supervisory Board said. After analyzing and verifying the debts, BDB becomes a creditor to the hospitals, pays the suppliers by discounting (reducing) the debt and helps their recovery, while the market mechanism of relations will not allow debts to accumulate again.

The new leadership is also starting talks with the National Association of Municipalities in the Republic of Bulgaria. Depending on their desire and capabilities, the bank can provide targeted support and loans for enterprises in the underdeveloped regions of the country, such as Northwestern Bulgaria.

 

fixed-button-icon
fixed-button-icon Online banking fixed-button-icon Apply
fixed-button-icon Exchange rates
fixed-button-icon Interest indices

Business Booster