site.btaOmbudsman Urges Central Bank to Protect Corpbank Depositors

Sofia, August 7 (BTA) - The National Ombudsman Konstantin Penchev has informed the Governing Council of the Bulgarian National Bank about the complaints received daily from depositors at Corporate Commercial Bank and Credit Agricole Bulgaria.

Penchev writes that the central bank has the tools to undertake steps and protect depositors at the two banks. In his words, there is a serious possibility all those that are affected by the central bank's inaction to seek compensation in court, which will be paid by the taxpayer. The Ombudsman has urged the central bank to be more flexible and offset the consequences for depositors of the suspected mismanagement of the bank.

Corpbank, which is this country's fourth biggest lender, suspended all operations on June 21 after a run by depositors. The central bank placed Corpbank under special supervision after it announced that it had run out of liquid assets.