The extradition of the former head of the Bulgarian Development Bank (BDB) Stoyan Mavrodiev once again puts on the agenda the issues of political influence and the granting of loans worth hundreds of millions of euros. According to an analysis by financial journalists Stefan Antonov and Petar Iliev on NOVA TV, the case raises serious doubts about systemic violations, bad business decisions and the concentration of public resources in a limited circle of economic groups.
Mavrodiev is accused of granting a loan of nearly 76.6 million euros, linked to businessman Rumen Gaitanski. The investigation against the former banker detained in Belgrade raises the debate about the real role of the state-owned bank and the extent to which it is possible to seek criminal liability for its embezzlement.
According to Petar Iliev, two of the most famous problem loans during Mavrodiev's time illustrate the bank's working model. One is for the company "St. George", created for debt collection, which in 2019 received funding of about 38.3 million euros. "Although the loan was defined as problematic, it continues to be serviced, albeit with difficulty," the journalist points out.
A significantly larger loan was granted to the company "Rodway Construction" for the acquisition of "Patstroyengineering" - a company associated with Rumen Gaitanski. Iliev explains that the loan had collateral, but with a questionable value. It later turned out that the real price of the assets was many times lower than the financing granted, which is why the loan was provisioned and reported as a loss by the bank.
In the studio of the show "Hello, Bulgaria" Stefan Antonov compared the scheme with the models known from the case with CorpBank. He specified that the main asset of the acquired company was a concession, which was then transferred, leaving the collateral practically without real coverage. "The loan was constructed in such a way that no formal signs of a problem would appear for two years, since it included a grace period for repayment," Antonov added.
The journalists also discuss the unprecedented concentration of funds. Even before 2013, about 75% of direct loans were directed to only 20 economic groups, and in 2017 this share reached 99%. "The bank had significant liquidity and was tasked not only with supporting small businesses, but also strategic sectors of the economy", Antonov notes. However, he admits that there have always been suspicions of political influence surrounding these processes.
Regarding political loans, Petar Iliev defines them as loans to companies associated with influential figures, regardless of whether the funds are for real business activity. According to the two analysts, the management of BDB has always been closely tied to decisions of the executive branch, since the state is its principal.
In connection with the criminal proceedings, Iliev emphasizes that proving embezzlement requires the prosecution to establish specific personal benefit. For his part, Antonov calls for a broader view of the institution: "It would be more important to analyze all the large non-performing loans in the history of BDB, the conditions under which they were granted, as well as the individuals who participated in their approval".
Stoyan Mavrodiev was detained on June 4 in Belgrade after a long international search. The investigation indicates that part of the funds from the problem loan of nearly 76.6 million euros went to pay dividends, and another - to cover the debts of companies around the “Varna“ TPP. Currently, the Bulgarian authorities are preparing the procedure for his extradition from Serbia.