EditAnalysis: The banker who knows too much returns to Bulgaria
The extradition of former state bank chief Stoyan Mavrodiev raises fears among the political elite – and questions about decades of shady state loans
This week, Bulgaria is set to receive the extradition from Serbia of a former senior state official. The timing is significant: a new government has promised to dismantle the very system that built his career.
Financier Stoyan Mavrodiev is more than just a defendant. His biography links state lending, financial oversight, and the political networks that have shaped Bulgaria over the past 15 years.
Few politicians have held so many influential positions in such a short time. After entering parliament with Boyko Borisov’s first government and the centre-right GERB party, Mavrodiev became chairman of the Financial Supervision Commission (FSC). His tenure coincided with one of Bulgaria’s biggest financial crises — the 2014 collapse of Corporate Commercial Bank (KTB).
Later, he took over the country’s only state-owned development bank, the Bulgarian Development Bank (BDB). Instead of supporting small businesses as intended, the bank issued massive loans to a small circle of large companies.
The controversial loan
Mavrodiev is being investigated over a BGN 150 million loan (about €77 million) granted in 2019 to a company controlled by businessman Roumen Gaitanski (known as “The Wolf”), a major player in the waste collection sector.
Four years later, after becoming a suspect, Gaitanski told investigators that the real beneficiary was Ahmed Dogan, the long-time honorary leader of the Movement for Rights and Freedoms (DPS). The claim emerged in leaks published by the investigative outlet BIRD, partner of EUalive, in its #CorruptionLeaks series.
“As far as I know, this was arranged at a meeting between Ahmed Dogan and Stoyan Mavrodiev. The loan was approved without any problems or proper due diligence,” Gaitanski reportedly told prosecutors in 2024.
Investigators found that much of the public money was used to buy luxury cars. Gaitanski was later released on bail of BGN 250,000 (€128,000). A European arrest warrant was issued for Mavrodiev.
To date, less than 1% of the essentially unsecured loan has been repaid, and payments have stopped.
The man who knows too much
Thanks to the high-level positions he held, Mavrodiev possesses detailed knowledge of how influence was shared among former Prime Minister Boyko Borisov, Ahmed Dogan, and oligarch Delyan Peevski (who has been sanctioned for corruption by the US and UK).
Another figure with similar documents and insider knowledge is Tsvetan Vassilev, the majority owner of the collapsed KTB. Vassilev, who faces charges for draining the bank, has lived in Serbia for over a decade. Despite close ties between Borisov and Serbian President Aleksandar Vučić, extradition attempts have repeatedly failed. Serbian courts have overturned lower-court decisions, and analysts see this as Belgrade’s reluctance to return him. The final decision rests with Serbia’s Justice Minister.
A different outcome for Mavrodiev
Mavrodiev’s case unfolded differently. He had been wanted for two years. After his arrest in Belgrade, President (and now Prime Minister) Rumen Radev spoke directly with Vučić. Serbia approved the extradition under a simplified procedure – and Mavrodiev did not contest it.
His lawyer, Emanuil Yordanov, linked the return to the recent change in government. “Mavrodiev himself decided this was the right moment to come back,” he told Nova TV. “The new environment in the country suggests that the rights of defendants will be respected.”
Mavrodiev arrived in Belgrade from Dubai less than a month after Radev’s new government was sworn in.
Shifting political winds
Bulgaria’s prosecution service has long been seen as highly dependent on political shifts. After the April 19 elections, which gave Radev’s “Progressive Bulgaria” formation an absolute majority of 131 seats, acting Prosecutor General Borislav Sarafov resigned on day four.
The new administration has vowed to dismantle the “Borisov-Peevski model.” So far, public actions have focused heavily on Peevski, with scandals involving luxury flights and alleged evasion of Magnitsky sanctions. Yet the BDB also issued around BGN 250 million (€128 million) in loans to companies linked to a DPS lawmaker.
Mavrodiev’s return brings Borisov back into the equation. For the first time, a figure from Borisov’s inner circle will face a prosecutor’s office operating under a different political majority. The institutions he once led were central to that system.
Interior Minister Ivan Demerdzhiev has said he is “very curious” to hear what Mavrodiev has to say. His defence, however, is trying to lower expectations. Lawyer Yordanov insists his client has no intention of revealing “sensations” and returned voluntarily, expecting a fair process.
The bigger question
Whether that happens remains to be seen. Even if Mavrodiev stays silent, his mere presence in Bulgaria creates political pressure on the three-time former prime minister – regardless of whether the investigation stays limited to the specific BDB loan.
Bulgaria’s post-communist transition has produced many “credit millionaires,” but rarely holds accountable those who approved the massive unsecured loans. The KTB trial is still at first instance after nine years. Vassilev says he would return only if guaranteed an impartial new trial.
The charge against Mavrodiev concerns one unsecured loan. The real question is whether the investigation will remain narrowly focused – or finally examine the political model that enabled hundreds of millions of public funds to flow to businesses close to those in power.
So far, Bulgaria’s prosecution has consistently struggled with such cases.
Caption: File photo of Stoyan Mavrodiev in his former capacity of head of the Bulgarian Development Bank (BDB). [Nadezhda Chipeva, Dnevnik, partner of EUalive]
Updated: July 13, 2026 - 07:10
