Oman Fund 'Drafting Plan for Bulgaria's Corporate Commercial Bank'
A plan to save Bulgaria's Corporate Commercial Bank is in preparation at the State General Reserve Fund (SGRF) of Oman, a fund source argues.
It is expected to be ready within three months, the website Gulf Business quoted the source as saying.
The report follows phone talks held Friday between Bulgarian Finance Minister Petar Chobanov and SGRF CEO Abdulsalam Al-Murshidi.
The two discussed options to solve capital shortages at the Corporate Commercial Bank (KTB), Bulgaria's fourth-largest lender which Bulgaria's central bank BNB is planning to close down, with its subsidiary Credit Agricole Bulgaria being taken over by the state.
Chobanov then announced in a message to the media that the government would provide the necessary conditions to KTB shareholders if they wish to help with capital.
According to the sovereign wealth fund's source, Sofia has agreed "to work with shareholders to provide a feasible working plan within a time frame of three months, as a substitute for the nationalization option".
He stressed, however, that the plan did not necessarily include investing more money into the bank, and also that options such as diluting majority share holder Tsvetan Vasilev's stake, as well as boosting KTB managerial board with independent members, were also on the table.
The prospect that the state could step into Credit Agricole Bulgaria, where "good" KTB assets are to be transferred, has divided opinions among Bulgarian lawmakers.
Current estimates suggest BGN 1.5 to 2 B (EUR 0.75 to 1 B) should be spent to bail out the bank if the government chooses to take that step.
This is far beyond the USD 129 M (EUR 95.3 M) that the SGRF paid to acquire nearly a third of CorpBank.
The Oman State Fund, which is among the state-owned entities concentrating excess oil revenues, has held a 30-percent stake at KTB since 2009.
- » Finance Ministry Meets with EPIC to Discuss KTB Recovery
- » BNB Welcomes KTB Shareholders' Efforts to Work on Recovery Plan
- » Finance Ministry Reopens 10.5-Year Issue of BGN-Denominated Govt Securities at 3.12% Yield
- » KTB Shareholders Seek Sofia Meeting to Prepare Rescue Plan
- » KTB Can Be Rescued Without Special Law or Public Funds, Experts Agree
- » Corpbank Rescue Options to Be Discussed at BIA
The more i read about this the worse it reads for the government who it seems are hiding something ?
The politicians should be treated like CHILDREN not given any money until they show they have done something to deserve it .
They should be paid at the end of each YEAR according to there productivity , maybe then they will do something useful for the country and the people instead of the normal TAKE TAKE TAKE and when something does not work well it was someone elses fault . As i have got paid who cares attitude .
If Europe pulls the cash flow due to the INCOMPETENT Politicians of Bulgaria .
Where then for the country??