Bulgaria's Interim Finmin Porozhanov Voices Concern about KTB

Interim Finance Minister Rumen Porozhanov has voiced concern about the impact of putting Corporate Commercial Bank under special supervision on Bulgaria’s banking system.

State-run Bulgarian National Radio quoted Porozhanov as saying that the Bulgarian National Bank (BNB), which put Corpbank, or KTB, under special supervision in June, bears the entire responsibility for the suspension of the bank’s operations and the freezing of the accounts of enterprizes and individuals in the bank.

Porozhanov told a meeting of the caretaker cabinet that an option based on market instruments rather than public funds will be sought for the troubled lender.

He added that companies that have had their accounts in KTB frozen since June 20, have delayed their tax payments by an average of two weeks.