Economy of Bulgaria
Bulgarian central bank Governor Ivan Iskrov has issued an official statement on rumors and speculations questioning the stability of certain Bulgarian banks.
He has described information propagated online as malicious and has denied Bulgaria's banking system could be in jeopardy.
The оull text of his statement dating June 27, 2014 is below.
Bulgaria's households increased their bank savings by BGN 138 in May, shows data of the Bulgarian National Bank (BNB).
This is about three times less than the money saved in April, which had reached BGN 371 M.
Since January 2014 the households' savings grew by a total of BGN 1.356 B and as of the end of May the total reached BGN 39.062 B.
The Bulgarian National Bank (BNB) has placed under conservatorship Credit Agricole Bulgaria, a subsidiary of the Corporate Commercial Bank (KTB), for 3 months.
BNB has appointed two supervisors, Stanislav Georgiev Lyutov and Elena Zdravkova Kostadinchev, and the members of the supervisory board and management board have been removed, according to a media statement.
The Corporate Commercial Bank (KTB) did not fail, because the central bank intervened quickly and decisively, BNB Governor Ivan Iskrov explained.
Bulgarian National Bank (BNB)'s Governing Council held a press conference just an hour after the central bank announced it had placed KTB under special supervision upon the commercial bank's request.
Bulgaria's Central Bank (BNB) places under special supervision the Corporate Commercial Bank (KTB), said the BNB press office.
According to BNB, CCB sent a letter asking for the supervision, due to “exhaustion of liquidity and termination of all payments and banking operations”.
As of June 20, BNB revokes the rights of the KTB shareholders and appoints a supervisory board.