Bulgaria Scraps Commercial Bank’s License

Bulgarian media reported on Friday that the Bulgarian National Bank, BNB, would revoke the license of the Corporate Commercial Bank, Bulgaria’s fourth largest bank, and nationalize its subsidiary, Credit Agricole Bulgaria.

Amid concerns that the banking system was under attack in an attempt to destabilize the country, a run on deposits at Corporate Commercial Bank, KTB, prompted the National Bank to seize control and freeze its operations.

Initially, BNB intended to help KTB recuperate to avoid a deeper financial crisis. In an announcement posted on its website, however, the national bank said the results of its audit had revealed evidence of “actions that are incompatible with the law and good banking practices”.

According to the public broadcaster BNR, the central bank’s governor, Ivan Iskrov, said about 1.75 billion euros seemed to be missing from KTB.

All citizens’ and company assets will be transferred to Credit Agricole Bulgaria once it is nationalized. Only the assets of major shareholder Tsvetan Vasilev and affiliated companies will be left in the bank, the news site Novinite reported.

According to Iskrov, Credit Agricole Bulgaria will be renamed, and will open on July 21, which is when BNB was set to conclude its supervision of KTB.

The results of the audit will be referred to Bulgaria’s chief prosecutor. The BNB has stated that it will use all means at its disposal to guarantee peoples’ savings.