Economy of Bulgaria

Bulgarian National Bank Governor: Banking System Stable

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.

Inspection of Assets, Liabilities of Bulgarian KTB Bank Starts

An inspection of the assets and liabilities of the Corporate Commercial Bank (KTB) banking group has been launched.

The inspection, which was requested by the Bulgarian National Bank (BNB) and the government, includes the credit and investment portfolios, according to a media statement of BNB.

Bulgaria's Households Saved BGN 138 M in May

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. 

Bulgarian National Bank Places KTB Subsidiary under Conservatorship

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.

KTB Operations Halted, but Bank Not Failed - BNB

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.

Central Bank Places Corporate Commercial Bank Under Supervision

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.