site.bta Corpbank's Main Shareholders Remain Committed to Bank's Recovery but Have No Specific Plan Yet

ESD 19:04:00 01-09-2014
LN1903ES.125
125 - ECONOMY - CORPBANK - CENTRAL BANK - COMMUNICATION

Corpbank's Main Shareholders Remain Committed to
Bank's Recovery but Have
No Specific Plan Yet


Sofia, September 1 (BTA) - The majority holder of the ailing
Corporate Commercial Bank (Corpbank), Tsvetan Vassilev, and
Oman's sovereign wealth fund which is another major shareholder
in the bank, are committed to the efforts to rescue the bank but
have not yet made any specific proposals to the central bank.
This transpires from a communication by the central bank on
Monday, a day after the expiration of a deadline it set for the
shareholders to come up with specific proposals for possible
capital and liquidity support for Corpbank.

Vassilev and the Oman Fund answered the central bank within the
deadline, August 31, but failed to present specific proposals or
make tangible financial commitments, the central bank says.

Corpbank has been inoperable since June 21 due to a lack of
liquid assets and has been placed under special supervision by
the central bank to allow a thorough audit and possible
restructuring. Tsvetan Vassilev and senior executives of the
bank have been charged with embezzlement. Vassilev is on
Interpol's wanted persons list and his whereabouts are unknown.


Vassilev says in his message to the central bank that an
investment company would submit to the central bank and the
government a structured proposal.

The Oman Fund, on its side, speaks of plans to set up a
consortium of investors which will make a proposal for
restructuring Corpbank. It says its proposal will be based on an
valuation of the Corpbank assets which is currently being done
by the controllers, on an additional due diligence and on what
it calls "adequate support" by the Bulgarian government.

The central bank vows its readiness to keep up "the constructive
dialogue" with the shareholders as it continues to fulfill its
duties and the work on a precise assessment of the condition of
the Corpbank group.

"The answers of the shareholders confirm the undisputed fact
that there are no fast decisions with immediate effect in this
[Corpbank] case," the central bank says.

Corpbank clients have held several protests outside the central
bank demanding that the bank reopen immediately and allow them
access to their money. VI/LN/