site.btaNo Data or Facts to Support Declaring Corpbank Bankrupt, Experts Say

Sofia, August 14 (BTA) - There is no data or facts which support declaring Corporate Commercial Bank (Corpbank) bankrupt, said financial expert Emil Hursev during a Thursday news conference. Hursev is a member of the expert consultative council on Corpbank's problems and a former deputy governor of the Bulgarian National Bank. The council issued a memorandum with conclusions, proposals and solutions about the bank's issues. The council's members are employers and trade unions, along with famous Bulgarian financial experts.

According to Hursev there is a chance for Corpbank to be rehabilitated and stabilized. This, however, can not happen without support from the outside and in line with EU rules.  The bank's rehabilitation should be done by committing private capital and funds to support its liquidity, the expert explained.

Hursev believes that a small part of the problem could start being solved right away through the Victoria Commercial Bank (former Credit Agricole Bulgaria), which is the smaller of the two banks in the Corpbank AD Group. This bank is in a good condition and can open its offices and start working, he commented, quoting the auditors' opinion.

The bank was recently acquired by Corpbank for a minimal sum and ownership of the Victoria Bank could be transferred to the Bulgarian Development Bank, for example, in return for refunding the sum paid by Corpbank for Victoria Bank's shares, he noted.

Hursev was adamant that Corpbank's problems should not be transferred to taxpayers and the budget. Financial instruments could be used to commit private funds, at least those of the bank's depositors, in order to recover and stabilize it.

The costs could be covered at the expense of the bank's own capital, the provisions and likely by part of the money of depositors, which exceed the guaranteed (100,000 euro). The most important thing is for the bank to be rehabilitated and working, because losses will be minimal this way. If the bank is allowed to go bankrupt, then losses will be maximal, as some experts from the investigative and prosecution authorities have said.