26.02.2014

Not a single credit institution has an aggregate net exposure exceeding 18% at economy aggregate level as of the end of last year, Minister of Finance Petar Chobanov stated at a press briefing after the Council of Ministers meeting. \"The ordinance regulating the relations of state owned companies with the banks has achieved the results expected\", Minister Chobanov commented. As an example he gave the end of the first quarter of 2013 when in a financial institution were concentrated almost 50% of all state owned companies\' resources and now that bank had around 17%. The second and third banks have 16% and 10% respectively. Chobanov specified that at the end of last year more than 85% of the state owned companies had adopted or were in the process of adopting internal rules consistent with the ordinance and that there was an increase compared to November that year when that had been done by only 76% of the companies. According to the Finance Minister in the energy sector the net exposure to the banks is negative, but however the biggest net exposure of 66% noted in the first quarter of 2013 has been reduced to 21% at the end of 2013.

In response to a question Minister Chobanov stated that the allocation of the funds under the Public Investment Programme „Growth and Sustainable Development of the Regions\" had not been made on a party oriented principle. The aim has been the funds to go to municipalities that have not received additional funds for capital expenditure or are not participating in projects under operational programmes. Chobanov quoted also data according to which for capital expenditures of municipalities in the period 2009 - December 2013 BGN 500 million had been granted. Through PIP only for this year the same resources have been allocated which shows that the overcoming of the regional differences is one of the Government\'s main priorities. \"Precisely in this way we want to create also a broad base for economic growth\", Chobanov added.