site.btaIMF Asked to Carry Out Financial Sector Assessment Mission in Bulgaria

Sofia, August 8 (BTA) - Bulgaria's central bank chief Ivan Iskrov on Friday asked the International Monetary Fund (IMF) to carry out a financial sector assessment mission in Bulgaria that would help restore public confidence in the national banking system after a banking crisis broke out in June, the bank said in a press release.

Iskrov addressed his request to Jose Vinals, Director of the IMF Monetary and Capital Markets Department. He suggested that the mission could be organized under the IMF's Financial Sector Assessment Program (FSAP).

The last FSAP review in Bulgaria was conducted in 2008, Iskrov recalled. He said the next FSAP mission could be organized as part of this year's regular consultations under Article IV of the IMF's Articles of Agreement and, if possible, should precede the consultations proper.

Iskrov noted that the troubled Corporate Commercial Bank (Corpbank) and its group have been placed under special supervision by the Bulgarian National Bank (BNB, the central bank). BNB has taken all necessary steps to resolve the situation and prevent any systemic risks from spreading outside the Corpbank group. As a result of that, the Bulgarian banking system has remained sound and its functioning has returned to normal, he said.

But still, a timely FSAP mission will help restore public confidence in the national banking system and preserve the country's financial stability, Iskrov said.