Corpbank Has Not
Asked Liquidity Support,
Central Bank Governor Says
Sofia, September 23 (BTA) - Bulgarian National Bank (BNB)
Governor Ivan Iskrov denied on Tuesday allegations by Corporate
Commercial Bank (Corpbank) majority owner Tsvetan Vassilev that
BNB has been asked to provide liquidity support to Vassilev's
troubled bank.
Iskrov published a statement in response to a post in Vassilev's
personal blog earlier the same day where he says that his bank
has been denied the support that had been provided to another
bank facing a bank run.
Vassilev further accuses individuals and state institutions for
staging "a pogrom" against his bank and says that he is working
for the recovery of Corpbank.
According to Vassilev, the central bank turned a blind eye to
Corpbank's situation despite his attempts to convince its
management to intervene.
Vassilev is currently in Serbia, released on own recognizance
and awaiting ongoing extradition proceedings in Bulgaria.
The central bank governor said that Vassilev's text contains a
series of false statements concerning BNB's work and himself. He
is adamant that the BNB Governing Council's decision to place
Corpbank and the Victoria Bank - also of the Corpbank Group -
under special supervision was made after the central bank was
specifically asked by the two banks' management in writing, with
neither bank having asked BNB to provide liquidity support.
Since the currency board was introduced on July 1, 1997, BNB has
not played the role of a lender of last resort for any bank in
the country, BNB's Governor says.
Iskrov further writes that he would not allow himself to comment
insulting and false qualifications, which work against the
trust in institutions.
"I would be glad if the determination shown by Vassilev for the
bank's recovery materializes. I am expressing BNB's readiness to
cooperate to the fullest extent, within its legal powers for
this to happen lawfully," Iskrov concludes his statement.
Meanwhile the Bulgarian Stock Exchange's (BSE) Board of
Directors extended the ban on trading Corpbank shares until
November 25, BSE said. PK/MY/LN/
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