As at 31 December 2025, the National Palace of Culture (NDK) had accumulated more than €48 million in uncovered accounting losses, according to Culture Minister Evtim Miloshev.
Speaking at an extraordinary press conference on June 5, Miloshev said that the loss for 2025 had increased by 502% compared with 2024.
"NDK is not an ordinary commercial company. It manages an asset of national importance. For that reason, its financial condition cannot be viewed as an internal corporate matter, but rather as an issue concerning the protection of the public and state interest," the minister said.
According to Culture Minister Evtim Miloshev, the National Palace of Culture is facing not a temporary but a structural financial problem, characterised by ongoing losses, accumulated deficits over many years and a declining capital base.
"These losses are eroding the company's assets, and that is a very worrying circumstance," Miloshev said.
He stated that there is a clear trend of declining equity capital and rising expenditure on external services. Personnel costs have also increased, along with other expenditures that, according to the minister, lack sufficient justification.
Miloshev added that, as at 31 March 2026, the category of "Other Expenses" had increased by €1,022,583.76 compared with the previous year.
The minister also alleged that, through an unlawful protocol signed on 5 August 2025 by Deputy Culture Minister Todor Chobanov (when Marian Bachev was serving as minister), the rules governing salary determination were amended in order to increase the remuneration of NDK's management.
He said the decision would be revoked as early as next week.
Miloshev further announced that he will appoint a procurator to the company, who will manage it jointly with the executive director.
Earlier today, during a hearing in Parliament, the Minister explained how the independent members of NDK's Board of Directors had been appointed in 2025.
Source: BTA, BGNES
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