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Late last night the Minister of Innovation and Growth Alexander Pulev

Alexander Pulev was born on February 5, 1981 in Plovdiv.

He has a master's degree in finance from the Oxford University, in his capacity as the principal of the Bulgarian Development Bank, released by his decision two of the members of the Supervisory Board of the Bulgarian Development Bank - Valentin Mihov and Vasil Shtonov, reported the press center of MIR.

In the reasons for the decision, it is stated that with Minutes No. 82 of 19.10.2021 of the Bank's management board, a decision was made to prepare a proposal to the sole owner of the Bank (the state in the person of the Minister of Economy, and then - to the Minister of innovation and growth) to start a procedure for issuing an unsecured bond issue.

Its amount is up to EUR 500 million, with a term of up to 7 years and for the purpose of refinancing the Bank's long-term liabilities.

With the same decision, the Bank's management board selects banks and consultants for the bond issue.

Two days later, with Minutes No. 40 of 21.10.2021, the supervisory board in its composition at the time approved the decision of the management board to issue a bond, subsequently having to exercise control over whether it was issued with the permission of the owner of the capital in the face of the minister.

In the meantime, however, 6 days later, Decision No. 16 of the Constitutional Court of the Republic of Bulgaria dated 27.10.2021 was adopted, with which the acts of the Minister of Economy, in his capacity as the sole owner of the Bank's capital, can be challenged , with which a supervisory board was appointed, which in turn elected the current management board of the Bank. 

Minister Pulev: The information provided by GERB about BBR corresponds to the truth

After the management board decided to request permission from its principal (the minister at the time was Daniela Vezieva) to broadcast the issue, in the end such permission was not received either by the then relevant minister Vezieva, nor by the successor - Daniel Laurer.

It was the lack of the minister's permission for the bond that should have given reason for the supervisory board to exercise control over the management board and not allow the continuation of the preparation of the bond.

The Board of Directors should not have taken further action on the bond, but nevertheless engaged banks and consultants and allowed an expenditure of BGN 929,856 between January 2022, when the banks are committed to the deal, and November 2022, when the Board of Directors decides to terminate the bond,

As a mandatory condition, the international banks - consultants on the issue - require the written and express permission of the principal both to start and before eventually ending the process.

In the reasons, it is further stated that Minister Pulev, through the newly appointed supervisory board in November 2022, repeatedly requested the Bank to provide the decision to the sole owner of the capital to issue a bond issue, but such a decision was not provided, but in the record-keeping system of the Ministry of Innovation and Growth is not available.

As can be seen from a statement prepared by the chairman and vice-chairman of the supervisory board, received on 30.11.2022, the management board did not implement its own decision, objectified in Minutes No. 82 of October 19, 2021, to prepare a proposal to the sole owner of the capital to start the bond issue, and the supervisory board did not exercise sufficient control and allowed the Bank to be damaged by the expenses incurred on the issue in the amount of BGN 929,856.

In addition to the above, the Bank's supervisory board has not exercised adequate control over the management board, in relation to the preparation of the Bank's budget for 2022 and its timely implementation.

No clear and specific goals have been set, according to the provisions of the Law on the Bulgarian Development Bank, including, but not limited to, financing public investments and projects that are a priority for the country's economy and reducing regional imbalances.

Based on these facts and circumstances, Minister Pulev immediately dismisses Valentin Mihov and Vasil Shtonov as members of the Bank's supervisory board.

The decision has immediate effect.

At the moment, the decision of Minister Pulev does not include the release of the two members of the supervision from responsibility.

Alexander Pulev

BBR

Supervisory Board