Stoyan Mavrodiev, the former head of the Financial Supervision Commission (FSC) who was not given a second term in the regulator because of his controversial actions and dozens of conflicts, will be appointed managing director of state-owned Bulgarian Development Bank (BDB). Sources familiar with the matter say that his nomination has been sent for approval to the central bank on top of a list with two other people who will also be given top positions in the bank. The new team, if approved, will take control over a financial institution with assets of 2.2 bln levs. BDB is a major player in SME financing and has a significant exposure to infrastructure projects such as the renovation of thousands of residential buildings.
According to sources, the other two new people nominated to the management board of BDB are Rumen Mitrov, an ex-official in the FSC known for his loyalty to Mr. Mavrodiev, and Nikolay Dimitrov, who currently works in the bank. Iliya Kirchev, who is now management board member and executive director, will remain in the managing body which brings in a sense of continuity.
Keeping the two professionals there could tone down potential comments that Mr. Mavrodiev and Mr. Mitrov are not bankers and have no adequate experience for the job. But the expectations are that Mr. Mavrodiev will be powerful figure in BDB who will execute what the current political class orders.
In July the political control over Bulgarian Development Bank has been passed from the Ministry of Finance to the Ministry of Economy headed by Emil Karanikolov. He was nominated for Minister of Economy by the United Patriots, the junior partner in the government coalition. Sources say the United Patriots have also been involved in the nomination of Mr. Mavrodiev to the bank.