23.06.2014

With this decision we try to signal that the state is ready to act quickly, timely and decisively to tackle the systemic risk. The aim is to restore the banking group and the depositors to receive the full amount of their deposits. This is how Minister of Finance Petar Chobanov comments for Trud Daily the actions taken by the BNB in connection with Corporate Commercial Bank Banking Group. He adds that before the Bulgarian Development Bank and the Fund Guaranteeing Bank Deposits enter CCB, the current shareholders will be allowed to provide the necessary resources, with the state interfering only if they do not manage to do so.

Minister Chobanov specifies that on 21 July people will be able to chose whether to leave their deposits with CCB, which would by that time be state-owned, or transfer them to another bank, including the state-owned BDB, which will start accumulating deposits. According to the Minister of Finance, it cannot be said right now how much additional capital is needed for both banks but this should become clear within 10 days when the audit and the valuation of assets and liabilities of both financial institutions will be ready. He adds that the Cabinet expects that the funds from the Fund Guaranteeing Bank Deposits, which by end-2013 amount to BGN 1.8 billion, will be sufficient to cover the needs.

BDB resources under the different lines of credit in support of the businesses remain intangible and even if the state capitalises BDB further so as to participate in the CCB capital increase, this will not be counted as deficit, adds the Finance Minister.