Deputy Prime Minister and Minister of Finance Galab Donev told reporters on Monday that Bulgarian National Bank (BNB) Governor Dimitar Radev’s statement from September 25 goes beyond Radev’s authority and appears to be an interference in the political status quo. On September 25, the head of the central bank warned that the proposed additional tax on bank profits could lead to more expensive or less accessible loans, restrict private investment and increase the cost of government financing.
Donev stated that the BNB Governor should not take a political stance on such issues. The minister characterized Radev’s position as interference in the political situation. Regarding the concerns expressed by Radev that an excess profits tax on banks could affect the cost of credit in Bulgaria, Donev stated that these are mere insinuations.
Donev noted that the draft legislation was posted last week, while on September 25, Fitch Ratings revised the outlook on Bulgaria’s credit rating to positive from stable and affirmed the country’s BBB+ rating, as reported by the Finance Ministry the following day. He added that if there were concerns about the investment climate in the country, the agency would hardly have upgraded the country’s outlook.
The minister said that, if necessary, official data will be released showing the percentage of excess profits in the country, noting that it reaches several hundred percent. He added: “Is this normal? Is it normal for these excess profits to be taken out of Bulgaria – not to be reinvested in Bulgaria, not to support Bulgarian businesses, not to support the Bulgarian treasury, and everything else that follows from that?”.
Donev stated that the specified period, on the basis of which the existence of excess profits will be determined, is appropriate, since it was precisely during this period that high profit growth was achieved not due to productivity, investments aimed at increasing efficiency, or improvements, but as a result of market conditions.
Donev reported that next year’s budget provides for cost-cutting measures, not just revenue-generating ones.
Commenting on proposals to increase tax breaks for families with children, the finance minister clarified that these are long-term measures and will not be funded by the one-time tax on excess profits.
Finance Minister Accuses Head of Central Bank of Interfering in Politics THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-09-28 17:01:56
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