Nationalization Won't Affect 'Good' Assets and Liabilities

Business » FINANCE | July 11, 2014, Friday // 13:49| Views: 1815 | Comments: 0
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Bulgaria: Nationalization Won't Affect 'Good' Assets and Liabilities File photo

Highlights of the statement of the Bulgarian National Bank (BNB) regarding the nationalization of Credit Agricole Bulgaria, daughter bank of the Corporate Commercial Bank (KTB):

1. Transfer of all “good” assets and liabilities of Corporate Commercial Bank (KTB) to Credit Agricole Bulgaria. It is important to know that this includes citizens’ and companies’ deposits, for which this will constitute just a legal and accounting operation, which will not affect in any way the most important – every citizen and company will have their assets. We stress again that the only exception to this will be the major shareholder and the firms and people connected to him. They will not be guaranteed by the state  and will remain in KTB.

2. Providing full liquidity support to the state-owned Credit Agricole Bulgaria (which will be renamed) from its new owner – the state. For this purpose enough funds will be provided from the Bulgaria's Deposit Insurance Fund (DIF), which protects personal and corporate deposits up to EUR 100 000, the state budget and the Bulgarian National Bank. Whatever is necessary.  The mechanisms for this are already developed as a result of the cooperation between the public institutions involved in the process, including the National Bank and the Ministry of Finance.

3.  KTB's license will be revoked and insolvency will be filed. Privileged creditors of KTB (in insolvency) will be the state, represented by the Ministry of Finance and the DIF.

4. The listed measures will become possible and will be taken after the passing of a special law, which is already drafted and will be tabled for deliberations in Parliament today.

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Tags: BNB, Credit Agricole Bulgaria, KTB, Corporate Commercial Bank, DIF
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