site.btaProsecutor General, SANS and FSC Chairmen Should not Participate in Corpbank Case Investigation - Reformist Bloc

Prosecutor General, SANS and FSC Chairmen Should not Participate in Corpbank Case Investigation - Reformist Bloc

Sofia, September 23 (BTA) - Chairman of the State Agency for
National Security (SANS) Vladimir Pisanchev, Prosecutor General
Sotir Tsatsarov and the Chairman of the Financial Supervision
Commission (FSC), Stoyan Mavrodiev, must not take part in the
investigation of the Corporate Commercial Bank (Corpbank) case,
said Radan Kunev of the Right-wing Reformist Bloc (RB) during a
news conference on Tuesday.

Corpbank suspended all operations on June 21, 2014 after a run
by depositors left it illiquid and on the same day it was placed
by the BNB under special supervision for a maximum of six
months to allow a thorough audit and possible restructuring.

According to Kunev, those three, along with former ministers of
interior and finance - Tzvetlin Yovchev and Petar Chobanov,
respectively, are to blame for the bank's condition.

RB candidate MP Peter Moskov said that they have drawn a list of
the top 50 Corpbank debtors, based on public information.
According to him, 150 credit portfolios make up 90 per cent of
all loans. Out of them, 59 companies do not have a single
employee. These companies owe the bank over 2.3 billion leva.
Another 59 companies have ten employees or less, which owe 1.6
billion leva, Moskov explained. Sixty-four per cent of all these
debtors have been running at a loss in the past two years, he
added.

The RB adamantly opposes bailing out Corpbank with taxpayers'
money, because this would mean a new state debt.

According to the RB, Directive 94/19/EC on Deposit Guarantee
schemes must be applied immediately. The guaranteed deposits
must also be paid out within 20 work days from the date the
directive has been applied.

The Right-wing formation insists that the truth about Corpbank's
debt be revealed. The problem must be solved by assigning the
investigation to a reputable international organization with
experience in solving financial fraud.

According to the RB, the Credit Institutions Act must be amended
and the financial regulators must be reformed, so as to avoid a
repeat of the Corpbank case.