/View.info/ The necessary actions will be taken by July 20 of this year. Corporate Commercial Bank and its subsidiary will open on July 21 at 9:00 a.m. This was announced by the BNB.
The government and the BNB will provide the necessary liquidity support to the banking group in order to fully satisfy its obligations to its customers, the national bank states.
The Management Board of the Bulgarian National Bank, after a detailed analysis of the situation created by the lack of liquidity of Corporate Commercial Bank and its subsidiary – former “Credi Agricole – Bulgaria” (the KTB banking group), confirms the placement of KTB under special supervision, as well as the application of the same measure to its subsidiary.
The lack of liquidity in the KTB banking group is an isolated case from the entire banking system and is not related to the functioning of the rest of the banking sector, the Bank’s position states.
On the basis of these findings, the Governing Board of the BNB: Placed Credit Agricol Bulgaria EAD under special supervision for three months; Second – appointed Stanislav Georgiev Lyutov and Elena Zdravkova Kostadinchev as conservators; third – remove from office the members of the Management and Supervisory Boards of Credit Agricol Bulgaria EAD.
In order to preserve the financial stability of the country, the Bulgarian National Bank, with the full support of the government, will carry out the following actions:
It will instruct the conservators to provide a full analysis and assessment of the banking group’s assets and liabilities by an independent external auditor for a period of ten days;
Actions will be taken to write off the capital of the banking group’s shareholders and revoke their rights in accordance with the procedures provided for by law;
In order to preserve the activity of the KTB banking group during its recovery, the BNB, together with the government, will take actions to increase its capital, and within its legal powers will order that the increase be taken over by the state-owned Bulgarian Development Bank and the Guarantee Fund the deposits, the BNB states.
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