Member of the Management Board of the Bulgarian National Bank (BNB) Lyubomir Karimanski commented to NOVA on the procedure for withdrawing 1.4 billion euros from the Bulgarian Development Bank (BDB) to the state budget. On the air of the program “Your Day“ the financier analyzed the unprecedented deficit in the treasury and outlined the macroeconomic scenarios for Bulgaria's development over the next two years.
Regarding the decision of the caretaker cabinet to withdraw 1.4 billion euros of unspent capital from the BDB as an anti-corruption measure and a resource for national payments, Karimanski emphasized that the financial institution was extremely liquid even before its capital was raised last year. According to the financier, returning these funds to the treasury could be a positive step for the state, but it requires strict compliance with legal mechanisms.
"This money cannot be simply withdrawn from the capital of the Bulgarian Development Bank without going through a legal procedure for its reduction", the member of the BNB Board of Directors was categorical. "There must be reasons why the capital is being reduced and all technical steps must be taken. Otherwise, everyone will act arbitrarily", he added.
Karimanski expressed serious concern over the fact that in March alone, the hole in the state treasury widened by another 1.77 billion euros. Official data from the Fiscal Council confirm that such negative levels have not been reported in our country since 2007. According to the expert, the next government should immediately focus on optimizing state spending and eliminating duplicate processes in the administration.
"Expenses cannot be cut in order to move towards a balanced budget in the medium term. We need to see the processes in the state - are they duplicated in several administrations", Karimanski pointed out. He drew a parallel with the Netherlands, which has a population three times larger than Bulgaria, but is effectively managed by a total of 17 ministries, while in Bulgaria they exceed 20. According to him, unnecessary bureaucracy and the constant requirement of the same data weigh extremely heavily on business.
The financier also commented on the macroeconomic scenarios for 2026. The realistic option foresees a 2.5% growth in Bulgaria's gross domestic product (GDP) and 4.2% inflation, while the highly pessimistic scenario relies on only 0.5% economic growth and 5% inflation. The movement along these financial axes depends directly on external factors and geopolitical stability.
"The conflict in the Middle East continues and the price of oil returns to levels above 96-98 dollars. This has a major impact and leads to a cascading increase in prices in all sectors of the economy," explained Lyubomir Karimanski.