site.btaInvestors' Consortium Holds Talks with Government on Corpbank Recapitalization Plan

121 ECONOMY - CORPBANK - CENTRAL BANK - INVESTORS - TALKS

Investors' Consortium Holds Talks
with Government on Corpbank
Recapitalization Plan


Sofia, October 24 (BTA) - Representatives of the Bulgarian
National Bank (BNB) held a meeting here on Friday with
representatives of EPIC, of Oman's State General Reserve Fund
and of Germcorp, the BNB said in a press release.

At the meeting, the BNB representatives were informed that a
consortium newly formed by these investors is holding talks with
the Bulgarian Government and with political forces represented
in Parliament on the drawing up of a plan for the
recapitalization and restructuring of Corporate Commercial Bank
(Corpbank) involving resources provided by means of State aid.

Corpbank suspended all operations on June 20 after a run by
depositors left it illiquid, and on the same day BNB placed it
under special supervision for a maximum of six months to allow a
thorough audit and possible restructuring.

The BNB reminded the investors that Corpbank's recapitalization
and restructuring plans must come complete with clear evidence
that the funds that will be invested exist and are available, as
well as of the timeframe and the instruments through which the
investment intentions will be implemented, considering the
expiry of the special supervision on November 20, 2014.

The central bank recalls that plans for Corpbank's restructuring
have not been submitted to the BNB so far. The central bank was
requested to cooperate in providing access to the reports of
the auditor firms analyzing and valuing Corpbank's assets.

"Since the BNB is not a party to the negotiations between the
Corpbank conservators and the auditor firms and the reports may
not be disclosed without the auditors' consent, the investors
were told that they will be helped to establish contact and
access the report under terms agreed between the consortium and
the auditors," the press release says. VI/LG