site.btaBankers Advise Corpbank Depositors not to Rush to Withdraw Savings

Bankers Advise Corpbank Depositors not to Rush to Withdraw Savings


Sofia, December 4 (BTA) - In a BTA interview, Association of
Banks in Bulgaria (ABB) Chairman Levon Hampartzoumian assuaged
Corporate Commercial Bank depositors that the banks designated
to pay out deposits are supplied with enough money.

The December 4 starts the payout of guaranteed deposits to
depositors in the delicensed Corpbank.

On June 20, 2014, Corpbank suspended all operations after a run
by depositors left it illiquid, and on the same day the central
bank placed it under special supervision for a maximum of six
months to allow a thorough audit and possible restructuring. In
November, the Governing Council of the Bulgarian National Bank
withdrew the banking licence of Corpbank.

The Bulgarian Deposit Insurance Fund pays through the branch
network of nine commercial banks in full the amount due to
resident and non-resident natural and legal persons who hold
deposits with Corpbank: up to 196,000 leva per depositor,
regardless of the number of accounts held with the bank.

Hampartzoumian forecast that the majority of Corpbank depositors

will have made arrangements about their money within two weeks.

He said that the Corpbank should be a lesson that has to be
looked into in order to avoid another such case in the future.
He said that post-1997 banking regulations in Bulgaria are very
conservative but people who enforce them should be more
efficient.

In a BTA interview Peter Ganev of the Economic Policy Institute
forecast that the bulk of the money will be deposited with the
paying banks. He ruled out an increase in demand or an impact on
 economic process in December.

The Interior Ministry said it had taken measures to guarantee
security around bank offices.