BNB is waiting for proposals for KTB until the end of August – 2024-10-05 07:00:35

/ world today news/ The Central Bank writes to the main shareholders.
Shalamanov hinted that external factors may have influenced the crisis

The BNB sent two letters to the two largest shareholders of Corporate Commercial Bank (KTB) yesterday. In them, the central bankers invite the holders of shares to send their “specific proposals for commitment by the end of August in accordance with the current legislation in Bulgaria and the EU.” This is written in a message to the media, which was uploaded on the website of the central bank. “Despite the media appearances of Tsvetan Vassilev, chairman of the supervisory board of KTB, the majority owner of the bank – “Bromak” EOOD, did not seek contacts with the BNB to discuss the financial condition of KTB and the necessary resources to restore its activity,” it says in the message. On June 20, the BNB placed KTB and its subsidiary commercial bank “Victoria” under special supervision due to liquidity problems. The central bank claims that the other major shareholder in the private treasury, the General State Reserve Fund of the Sultanate of Oman, has shown interest, demanding to know the actual financial position of the bank and has insisted on significant financial support from the BNB. The central bank reminds that neither Bulgarian nor European legislation allows such a thing. KTB also does not meet the requirements for state aid, permission for which was received from the EC at the end of June. It applies to banks that are not short of capital and this must be certified by the supervisory authority, the announcement said.
Due to a lack of sufficient information and documents, the conservators appointed to the KTB will not be able to assess the bank’s loan portfolio and therefore the audit will be delayed, which will require the BNB to extend its term. As already reported, this cannot to be earlier than October 20. This process will take more time, and it will also require the current difficulties of the borrowers to be taken into account in the final assessments, the BNB reports.
Meanwhile, Defense Minister Velizar Shalamanov hinted that external factors may have influenced the KTB crisis. He promised that there would be no upheaval in the services, because “they must work well, including to find external factors that probably influenced the KTB crisis”.