Bulgaria to Withdraw Public Funds from Controversial Corporate Bank

Business » FINANCE | June 23, 2013, Sunday // 18:17
Bulgaria: Bulgaria to Withdraw Public Funds from Controversial Corporate Bank Bulgaria's Minister of Economy and Energy Dragomir Stoynev. Photo by BGNES

The Bulgarian government will withdraw funds of public companies invested in controversial Corporate Commercial Bank, according to Minister of Energy Dragomir Stoynev.

"Given that there are huge financial resources concentrated in this bank, then I guarantee that within months these resources will be withdrawn and distributed in a just way in other banks," said Stoynev for the Bulgarian National Radio Sunday.

Bulgaria's previous caretaker cabinet led by former PM Marin Raykov revealed data showing massive concentration of funds in the Corporate Commercial Bank (KTB), including 80% of resources of state energy companies.

The Raykov cabinet also adopted new rules for deconcentration of public funds, mandating that only up to 25% of the resources of any given entity can be invested in a single financial institution.

In his Sunday interview, Minister Stoynev stressed that the new cabinet led by PM Plamen Oresharski is committed to continuing the full review of the investment of public funds and ensuring fairness and transparency to the public.

The Corporate Commercial Bank owned by Tsvetan Vasilev gained notoriety not only with amassing large amounts of public funds, but also with financing the creation of the influential New Bulgarian Media Group.

Liberal MP Delyan Peevski, together his mother Irena Krasteva are the two people known to control the media group, which has embarked on a successful acquisition campaing of a string of media outlets.

PM Oresharski's June 14 nomination of Peevski for director of the State Agency for National Security (DANS), which was approved by Parliament on that day, provoked considerable public outrage.

Peevski has formally stepped down days after, but the event triggered massive street protests in capital, which Sunday enter their 10th consecutive day.

Delyan Peevski is MP from the Movement for Rights and Freedoms, which together with senior partner Bulgarian Socialist Party elected the Oresharski cabinet into office.

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Tags: Dragomir Stoynev, Plamen Oresharski, Marin Raykov, State Agency for National Security, Delyan Peevski, DANS, Irena Krasteva, New Bulgarian Media Group, protests
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