EC Urges Bulgaria to Start Paying Guaranteed Deposits at KTB Bank

Business » FINANCE | August 3, 2014, Sunday // 11:20| Views: 2196 | Comments: 12
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Bulgaria: EC Urges Bulgaria to Start Paying Guaranteed Deposits at KTB Bank Photo by EPA/BGNES

The European Commission has warned the Bulgarian National Bank to speed up the repayment of guaranteed deposits of natural and legal persons at the Corporate Commercial Bank (KTB).

In a letter of the EC, signed by Jonathan Faull, Director-General of the Internal Market and Services Directorate-General, BNB and the Bulgarian authorities are notified that they are delaying the provision of the access to the deposits at KTB.

The letter informs that EU law envisages that the repayment of deposits start within20 days from the moment when the bank stopped functioning and it was clear that there was no possibility of it resuming its activity.

The letter, as cited by the Bulgarian National Television, concludes that the Bulgarian authorities are overstepping the legally enshrined time limit for deciding the matter.

The letter of the EC addresses outgoing Finance Minister Petar Chobanov and BNB Deputy Governor Kalin Hristov.

The EC says that it finds the situation very worrying and cautions that it may take steps to guarantee the application of EU law, which observers interpret as an infringement procedure warning.

The EC insists that the deadlines stipulated in EU law must be observed because the Community legislation has a primacy over national legislation of the Member States.

Jonathan Faull also assures Bulgaria that the EC is ready to offer expert assistance if necessary.

A few days ago, BNB announced that it could extend the period of conservatorship after September 21, thereby triggering fears that the repayment of blocked deposits would start no earlier than end-2014.

KTB was placed under conservatorship by BNB on June 20 after a bank run which saw depositors withdraw more than one-fifth of total deposits in a week.

Under Bulgarian law, BNB can keep a bank under special supervision for a period of up to six months.

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Tags: Corporate Commercial Bank, KTB, Corpbank, Bulgarian National Bank, BNB, Bulgarian government, European Commission, EC, conservatorship, EU law, infringement procedure
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» To the forumComments (12)
#12
Dogfish - 4 Aug 2014 // 11:57:28

Mr. Duane now started to hide his ads inside the topics. As said before, "fresh cut" sounds to me like some kind of sausage, where you don't want to know what went into it...

#11
Seedy - 4 Aug 2014 // 11:43:04

In those circumstances I feel even more sympathy for you and your colleagues. As I said, hind-sight is a great thing but this mess reminds us all that there's so much out there that can get us unexpectedly - I really hope that everything pans out okay for you, man....

#10
EDC - 4 Aug 2014 // 08:34:35

Seedy,
I understand your point of course if one is going to put their money somewhere they should check out the establishment and it,s credibility. BUT?
This as you know is Bulgaria and not all employees where given a choice as to where there salaries would go this decision was made for them by the employer as it was to the company advantage to keep the accounts in one bank . Bank making the profits and company keeping the interest on account as long as possible .
I like yourself it seems do not have an account with this bank but have a few friends that do unfortunately.
Why do people get upset about what someone rights on a forum confuses me ,i read it ,like it or dislike it , but it will not change my life .

#9
Seedy - 4 Aug 2014 // 00:03:36

"I thought this was a serious forum sight where people would support others by trying to help or come up with positive suggestion to resolve the issues reported via this website."

Well, clearly you have a lot to learn about this site and the world in general! I'm sorry if my views don't fit your preconceptions of what's permissible but that's your problem, not mine - your views don't match mine but that doesn't make you correct or give you the right to dictate what others should think or say. Feel free to prattle away to your heart's content, just like the rest of us, but please don't bore us with your sermonising....

#8
R W - 3 Aug 2014 // 23:44:42

Sorry for the mistakes in my comments, predictive text is such a pain, like Seedy.

#7
R W - 3 Aug 2014 // 23:41:33

I thought this was a serious forum sight where people would support others by trying to help or come up with positive suggestion to resolve the issues reported via this website.

Clearly people like Seedy have alteria motives and feel the need to add to the upset of others by adding their stupid comments which obviously stem from ignorance.

Read the 'Deposit Insurance Fund Policy' Seedy which I'd available via most Banks websites then you will read that their is a 20 day timeframe which the EC are reminding the BNB and Bulgarian Government is Law. So whether you like it or not there is a Policy in place.

But as I have said already this matter clearly doesn't effect you so why not just keep your comments to yourself.

#6
R W - 3 Aug 2014 // 23:24:39

Seedy,

Do you enjoy annoying people with your stupid comments or are you just stupid full stop?

This situation obviously does not concern you or your finances so why comment on the steps being taken in this matter.

Please before you end up upsetting the whole community of people and businesses with accounts being held by this bank keep your comments to yourself. Your motives for annoying people might make you happy but people are not happy with you. Jog on and join the local play school

#5
Seedy - 3 Aug 2014 // 19:23:21

What I don't get is just WHY anyone would put their money in a bank with such a shady reputation. If you hire a builder, you don't pay him up front or without checking his credentials, so who would put their "everyday" money in the hands of Vasilev/Peevski or where Putin might use it as a way to teach Bulgaria/the EU a lesson? Do people really just pick a bank out of a hat and let it handle their money without asking themselves if this is a smart move? I can understand risking a deposit in a dodgy bank if there's a chance of getting a high return but using it for everyday banking doesn't seem to make sense.

I appreciate that hind-sight is a wonderful thing and I have to say that I am sorry that you are having such an apparently hard time with your day-to-day finances though....

#4
Bruce Gaskell - 3 Aug 2014 // 18:01:00

Nice - BG criminals need to know that big brother is watching them.

#3
EDC - 3 Aug 2014 // 15:03:21

Seedy
Not all accounts are getting interest they are normal everyday banking accounts and the people can not access their living costs .

#2
Seedy - 3 Aug 2014 // 14:44:10

The deal is that deposits up to the guarantee are "protected" - I don't recall seeing any promises about exactly when depositors can actually get their hands on the cash though......one of the pleasures of putting your money in the hands of moutri in return for a little extra interest, I'm afraid. There's usually a fly in every jar of ointment ;)

#1
EDC - 3 Aug 2014 // 14:39:10

Bulgarian law Keeping a bank under supervision up to six months is all well and good .

Its one thing to SUPERVISE a WORKING BANK ,

If the bank is CLOSED ,WHAT SUPERVISION IS NEED, IT IS NOT OPERATING ? people are without cash .