site.btaDepositors Withdraw 2% of Insured Corpbank Deposits

ECONOMY-CORPBANK-FINANCE MINISTRY-DEPOSITS-PAYMENT

Depositors Withdraw 2% of Insured Corpbank Deposits


Sofia, January 8 (BTA) -  Depositors have withdrawn as little as
 2 per cent of insured deposits at Corporate Commercial Bank,
Bulgarian Deposit Insurance Fund head Radoslav Milenkov told a
news conference at the Finance Ministry on Thursday.

The news conference came after of a meeting between Finance
Minister Vladislav Goranov, Milenkov and the CEOs of banks
selected to pay out insured Corpbank deposits.

In 20 business days starting December 4, the Fund paid out 90
per cent of insured deposits or 3.25 billion leva, to 91,300
depositors.

Corpbank suspended all operations on June 21 after a run by
depositors left it illiquid, and on the same day the Bulgarian
National Bank placed it under conservatorship for a maximum of
six months to allow a thorough audit and possible restructuring.
 Corpbank has been delicensed  and is in the middle of a
bankruptcy procedure.

Finance Minister Goranov and Association of Banks in Bulgaria
Chairman Levon Hampartzoumian said that the banking system was
stable and was operating normally.

Milenkov said that the money had been raised through Fund's own
resources and a government loan of 2 billion leva.

Negotiations are underway between the Deposit Insurance Fund and
 banking institutions for a standby line of credit. Finance
Minister Goranov said that the loan taken out by the Fund will
be guaranteed by the state within the fixed state guarantees for
 2015, adding that the government does not plan to change its
debt raising policy for now.

* * *

The Regional Development Ministry said that the homeowners'
associations participating in a retrofitting scheme will be able
 to tap their Corpbank escrow accounts from January 8.