Political Consultations on Bulgaria's KTB Affair Kick Off

Leaders of political parties have arrived at Bulgaria's Presidency to attend consultations with head of state Rosen Plevneliev over the latest developments in the banking sector.

Prime Minister Plamen Oresharski, his deputy (and Justice Minister) Zinaida Zlatanova, Finance Minister Petar Chobanov and Parliament Speaker Mihail Mikov are also to take part in talks aimed at exploring the financial situation of the state.

Possible legislative amendments safeguarding the country's financial stability and preventing bank runs similar to those in June are also on the agenda.

Bulgarian National Bank (BNB) Governor Ivan Iskrov, alongside deputies Kalin Hristov and Dimitar Kostov, and Chief Prosecutor Sotir Tsatsarov will also be present.

President Plevenliev called consultations after a bank run prompted Corporate Commercial Bank (KTB) to request conservatorship from BNB in June.

After an independent audit was carried out at KTB, the central bank announced Friday it was taking away the license of Bulgaria's fourth-largest bank and was to declare it insolvent.

It also decided the state should step into KTB subsidiary Credit Agricole Bulgaria, with the nationalized bank receiving KTB customers' assets to protect people's savings.

More to follow.