site.bta Probe Starts against Conservators at Failed Corpbank

Probe Starts against Conservators at Failed Corpbank

Sofia, May 11 (BTA) - Prosecutors have started a probe for
deliberate negligence against the conservators at the failed
Corporate Commercial Bank (Corpbank), the Sofia City Prosecution
Office said Monday.

They are suspected that in their capacity as conservators
appointed by the central bank at Corpbank from November 2014 to
March 2015, they failed to take good care and preserve the
assets of the bank, thus causing considerable losses to the
bank.

The prosecutors believe that this was a case of gross
intentional negligence.

Corpbank suspended all operations on June 21 after a run by
depositors left it illiquid. On the same day the central bank
placed it under conservatorship and the conservator remained at
the bank until March 25 when they were replaced by trustees in
bankruptcy. Corpbank is not delicensed and declared bankrupt by
a court.

In mid-March, the head of the parliamentary finance committee,
Menda Stoyanova, said in a televized interview that the Corpbank
assets shrunk by 1 billion leva during the conservatorship.

As part of the probe, the prosecutors will examine all contracts
Corpbank had with clients using preferential interest rates and
the payments made on these, and will try to establish whether
the legal order for satisfying the bank creditors has been
violated. All deposit owners who got money from preferential
deposits and all officials involved in the process, will be
questioned.