/ world today news/ No official audit of KTB has been published yet. In practice, for now we only know that the bank has a very serious portfolio of assets.
And when it comes to losses, the normal question arises as to why not sell some of that portfolio at market prices to cover the losses and instead go for such complex operations. The whole public knows that KTB has serious assets, the sale of which will cover losses, ensure refinancing and improve liquidity. The bank can also receive temporary bridging financing to improve its liquidity to cope with the pressure of its depositors, and from then on the conservators will have the opportunity to heal the credit institution and look for a way out of the crisis.
Otherwise, the intervention of the state in such commercial relations is always dangerous.
The governor of the BNB, Ivan Iskrov, must first say what is the real state of KTB and on what basis is he proposing nationalization?
In the findings presented, it can be seen that the auditors themselves cannot tell which of the 3.5 billion loans with missing documentation are poorly serviced or which are unsecured, which shows that the picture presented to us is not real. It is best to have international auditors enter KTB and see what the situation is. It is necessary to understand whether the shareholders themselves could cure the bank. Then consider whether the problems with its capital adequacy and liquidity cannot be solved with a part of the portfolio.
We want only those depositors whose deposits fall under the protection of the European guarantee up to 100,000 euros to be compensated. According to various data, a large number of depositors with particularly large deposits received preferential interest rates for certain bank services. Having played this risky market, they must take responsibility. If absolutely all deposits in KTB are covered, it will be at the expense of Bulgarian taxpayers, which is not right.
I am surprised by the excessive politicization of the issue surrounding KTB. I have not yet heard an official statement from the auditors, nor from the conservators who took over the bank. The most important thing is to give us an answer to the question: where has “Banking Supervision” been so far with this huge growth in deposits and loans? For 2013, KTB reports a 21% growth in loans against the background of the contraction of their volume throughout the country. There is a 40% increase in their deposits. With what policy are these deposits attracted? When there is a drastic development that differs from the general development of the banking system in the country, it is an indication that there is something incorrect in the functioning of the bank.
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