Bulgaria C-bank Allows Corpbank’s Debtors to Repay Loans
Bulgaria’s central bank has partly unfrozen operations at Corporate Commercial Bank and its wholly owned subsidiary Victoria Bank to enable their debtors to repay loans.
The Bulgarian National Bank (BNB) said on Friday that Corpbank and Victoria Bank are now allowed to accept repayment of credits they had extended.
The repayment can be made from accounts held by debtors of Corpbank and Victoria at these two banks, or from accounts of their guarantors at the same banks, if the guarantee had been issued before June 1, 2014.
The two commercial banks now can also conduct foreign exchange transactions in case such transactions are needed for the repayment of credits owed to them, the BNB said.
The BNB put Corpbank, or KTB, under special supervision on June 20 following a run on deposits, freezing all of its operations and ordering an audit of its books. On June 22 BNB put under special supervision Corpbank’s subsidiary Credit Agricole Bulgaria, which was renamed to Commercial Bank Victoria earlier this month.
The BNB-appointed administrators at Corpbank and Victoria have been instructed to release 100% of loan collateral in case borrowers repay their credits in full, the BNB said.
If a loan covered by several pieces of collateral is only partially repaid, administrators can release a certain part of collateral only if the remaining portion comprises liquid and quality assets that cover no less than 130% of the borrowing.
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So this is their way to get back STATE money that has been loaned out ?
This is so sort of JOKE . pay money into a bank that is closed and will probably never reopen .
The loans will not go away but will be sold of at a great loss to the bank therefore the STATE will lose a lot of money from their deposits ?