EU Bank Watchdog Urges Bulgaria to Ensure Instant Access to KTB Deposits

European Banking Authority said Monday Bulgaria should allow immediate access of depositors at Corporate Commercial Bank (Corpbank, KTB) to their savings.

Both the Bulgarian central bank BNB and the Deposits Insurance Fund (DIF) are breaching Article 1(3)(i) and Article 10 of Directive 94/19/EC, the deposit-guarantee law of the European Union, the banking watchdog warned in a statement.

Bulgaria should either completely remove restrictions and ensure depositors' access to their money in both KTB and its daughter Commercial Bank Victoria (formerly Credit Agricole Bulgaria) or should launch the mechanism to make transfers from the DIF, the banking authority (EBA) has demanded in a formal recommendation.

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