The Bulgarian Development Bank (BDB) is managing about €330m from the national recovery plan to renovate 630 apartment blocks in more than 100 municipalities. Delyana Ivanova, chair of the bank's supervisory board, said this at the Annual Meeting of Local Authorities.

The buildings have a total floor area of nearly 1.3m square metres. Work to insulate them was not finished by the plan's deadline. Approved projects get 100% grant funding after the required checks, so the money does not have to be repaid.

The money was moved to BDB after the bank, the finance ministry and the regional development ministry worked on it together. The European Commission has accepted BDB as a reliable partner, Ivanova said.

All contracts with municipalities were signed by 31 August, and the work must be done within three years. The bank pays after it checks the work and receives the needed documents. A municipality pays the contractor only once it confirms the work is of good quality.

"Now the responsibility is shared – the projects must be done well, reported and paid for," Ivanova said.

If the programme ends well, she said, it will show that Bulgaria has a reliable way to manage EU money. She believes BDB could then be given more projects in future, the funds would be used more flexibly and the country would not lose money because of short deadlines.

When EU rules and deadlines are tighter, a national development bank could help use the money more fully, Ivanova said. In Europe, these banks are large state institutions that turn government priorities into funded programmes. They finance projects ranging from small business and innovation to social housing and infrastructure.

BDB has programmes for water supply and sewerage and for hospitals. It can also fund programmes of the youth and sports ministry, and it continues to support small and medium-sized businesses.

The bank can give municipalities and contractors bridge financing, meaning temporary money until the main funds arrive. It can also give top-up funding for projects with a secured national, municipal or EU budget. Ivanova said BDB is ready to discuss the specific needs of the state and municipalities and offer solutions. She added: "The bank can be a partner of the state and municipalities in carrying out important projects."