site.btaAudit Report on Quality of Assets of Corpbank Submitted to BNB

Audit Report on
Quality of Assets of Corpbank
Submitted to BNB


Sofia, October 20 (BTA) - An audit report on the quality of the
assets of Corporate Commercial Bank (Corpbank) and Commercial
Bank Victoria that have been placed under conservatorship was
submitted to the Bulgarian National Bank (BNB) on Monday, the
central bank said. The report has been drafted by three
independent audit companies: Deloitte Audit, Ernst & Young and
AFA.

The results of the report and the central bank's subsequent
actions will be announced in the following days.

While placing the two banks under special supervision, BNB
authorized the conservators to ensure the performance of a
check of the assets and the liabilities of the banking group.
The check has established that, there is no information about
the financial standing of borrowers of credits of the value of
3,500 million leva given that the total value of the extended
credits is 5,400 million leva. This prompted the central bank's
decision to authorize the three independent auditor companies to
make a full check of all Corpbank assets - credits, investment
portfolio and buildings.

According to the Credit Institutions Act, of the requirements
for equity capital are not fulfilled in accordance with the
relevant EU regulation, the bank's licence should be withdrawn.

BNB said that Corpbank shareholders have not submitted a
rehabilitation plan so far. /PK/TK/