site.btaEC Does Not Plan to Open Infringement Procedure against Bulgaria Over Corpbank

EC Does Not Plan to Open Infringement Procedure against Bulgaria Over Corpbank


Brussels, September 18 (BTA correspondent Nikolay Jeliazkov) -
The European Commission (EC) does not plan to open an
infringement procedure against Bulgaria over Corporate
Commercial Bank (Corpbank) as of right now, an EU source
speaking on condition of anonymity told BTA.

Corpbank (Bulgaria's fourth largest lender) suspended all
operations on June 21, 2014 after a run by depositors left it
illiquid and on the same day it was placed by the central bank
under special supervision for a maximum of six months to allow a
thorough audit and possible restructuring. Tsvetan Vassilev,
whose Sofia-based Bromak EOOD is the majority shareholder in
Corpbank with a 50.7 per cent stake, is charged with aiding and
abetting senior executives of the bank to embezzle nearly 206
million leva from Corpbank between December 2011 and June 2014.
After being placed Interpol's Red Notice Wanted List, Vassilev
was detained by the Serbian judicial authorities on September
16.

The anonymous source explained that the EC is in constant touch
with Bulgaria regarding this matter and the so called pilot
procedure has been launched, as part of which information is
being exchanged. Questions were sent to Sofia on August 18 the
answers to which were received by Brussels on August 27, the
source added.

According to the source, the expectations are that the issues
being discussed will be resolved without the need to necessarily
open an infringement procedure against Bulgaria. On August 1,
the EC had sent a letter to the Finance Minister and the central
bank's Governor, in which the Commission voiced concern about
the long period of time in which Corpbank depositors do not have
access to their funds.