Customers of Troubled Bulgarian Corpbank to Sue State for Damages
Customers of Corporate Commercial Bank (KTB), including natural and legal persons, will sue the state for the crisis at the fourth biggest Bulgarian lender.
An initiative committee has issued a media statement informing that it will make the Bulgarian National Bank (BNB), the prosecution, the investigative authority and the Interior Ministry liable and will seek compensatory damages.
The authors of the media statement say that they are deliberately keeping the names of the claimants secret because they have been already been subjected to threats and pressure, including by prosecutors and investigators.
They emphasize that the matter involves a number of key enterprises in the military industry and their employees, as well as factories in Ruse, Plovdiv, Pleven, Sopot, Lyaskovets, Varna, etc.
The claimants point out that a number of companies have been unable to use their money, kept as a deposit at KTB or paid out via KTB, for a second month in a row.
"We believe that the ones to blame are the state institutions, which acted inadequately or under pressure, or failed to act in some situations, thereby allowing a certain political-economic circle to launch an unprecedented attack against a credit institution" the letter says.
According to the signatories, the contradictory and manipulative announcements about the condition of KTB supplied by BNB, the prosecuting and the investigating authorities and the Interior Ministry contributed to the current crisis.
The signatories to the letter are filing collective action for compensation for damage to natural and legal persons.
The initiative committee has asked a foreign law firm to defend their interests at the international court in Luxembourg.
They will also file collective action with a district court as a court of first instance.
The initiative committee emphasizes that the destabilization of KTB affected entire sectors of the country's economy, with over 15 000 military industry officials and workers directly affected and no less than 150 000 workers in other sectors indirectly affected.
KTB was placed under conservatorship by BNB on June 20 after customers of the bank withdrew more than 1/5 of its total deposits in a week.
The period of special supervision for KTB has been extended by September 21.
An audit at the bank showed that its activities were "incompatible with the law and good banking practices."
KTB's subsidiary Credit Agricole Bulgaria has also been placed under conservatorship.
- » Bulgaria, Romania Sign Joint Declaration on Energy Cooperation
- » Minimum Wage in Bulgaria to Reach EUR 230 in 2017
- » Bulgaria's KTB Officially Slides into Insolvency after Court Ruling
- » Eurostat 'Has Reservations' about Bulgaria's 2014 Deficit Data
- » Bulgaria C-Bank 'Warned Greek-Owned Banks' over Grexit Scenario
- » Foreign Direct Investment in Bulgaria Down 6.9% Y/Y in Jan-Feb 2015
Come on let's not argue over grammar and spelling, lets stand together and make positive comments regards the situation.
The BNB owe all depositors of KTB, under the Deposit Insurance Policy, to repay the max of 100,000 Euros if it is going to revoke the licence of the Bank. I ask them to follow the Policy so that the citizens can gain access to their money and businesses can continue to trade and for those that wish to find an answer for depositors with excess of the Policy max can argue the pros and cons behind the scenes to find solutions.
Is it really rocket science for the BNB to read and follow a Policy once they have made a decision. So the answer lies in being able to make a decision based on the facts.
How much money does KTB require to get back on its feet? The audit should have indentified this! If the EU have offered a fund to help why not use it to fill the shortfall, Shareholders step in or the State and save the Bank if not revoke the licence so that the Deposit Insurance Policy can pay out within the so called 20 day period.
The country can not wait till Sept for a decision as thousands will lose their jobs as the businesses close. This country can not afford another 80,000 more unemployed or for foriegn investors to run.
A message to the BNB. Prevent a knock on effect, make a decision, you have had a month and wasted it. The citizens and businesses can not afford more wasted time. save it or close it but give the people and businesses access to their money.
So now that this has been implemented, NO member of government, state official ,or any person connected with this mess in the BNB should be permitted to leave the country or have any dealing with the transfer of MONEY out of BULGARIA.
The present members of government should not be going into recess or taking holidays they should be showing the people and the rest of Europe how they are a responsible and committed government of Bulgaria.
If they dissolve and leave it only shows and tells the financial world that this mess does not concern them ,it also will ASK the question who really is responsible where they involved ?
It will show very poor leadership and little trust from those who elected them .