Ministry of Finance Refutes BBR: There Is Money for Municipalities and Energy-Efficiency Renovations

Funds for the Investment Program for Municipal Projects, as well as for the renovation of residential buildings (or so-called energy-efficient renovation), are earmarked and secured. This is stated in a strongly worded statement from the Ministry of Finance (MF), released to the media today in response to a message sent yesterday by the Bulgarian Development Bank (BDB).

A day earlier, the BDB warned that it has limited capacity to pay for municipal projects, and that the funds for renovation are “at risk.” The reason: the caretaker government decided to withdraw 1.4 billion euros from the BDB and inject them into the budget. According to the state bank, this leads to “direct effects.”

The statement notes that the government’s decision limits the bank’s ability to make payments under the municipalities’ investment program. It also puts at risk the €246.6 million saved under the Recovery and Resilience Plan (RRP), provided to the BBR for management directly by the European Commission. The funds are intended for the renovation of multi-family residential buildings."

The Ministry of Finance, however, now counters that the funds in question have already been secured as part of the implementation of Bulgaria’s fiscal policy.

The investment program for municipal projects is one of the key priorities of the caretaker government, and payments under it are secured,” officials at the ministry, currently led by Georgi Klissurski, state categorically.

They further note that the total maximum expenditure under the Program for 2026 until the adoption of a regular budget is 460.2 million euros, to be disbursed by the Bulgarian Development Bank (BDB). These funds were allocated to the BDB as early as January.

As for the funds for renovation, they amount to €246.6 million. “These funds are earmarked and are provided within the framework of European funding under the Recovery and Resilience Plan (RRP) and the complementary national co-financing,” the Ministry of Finance clarifies.

Payments are made by the BBR, and no own financing from the Bank is required to carry out the investment, as the funds are 100% grant financing," the ministry adds.

Translated with DeepL.