Oman State Fund 'Could Save Bulgaria's CorpBank' - FinMin

Business » FINANCE | July 18, 2014, Friday // 15:14
Bulgaria: Oman State Fund 'Could Save Bulgaria's CorpBank' - FinMin Photo by Hristina Dimitrova

State General Reserve Fund of the Sultanate of Oman, one of Corporate Commercial Bank (KTB) shareholders, is free to take steps to save it, Bulgaria's Finance Minister announced.

Minister Petar Chobanov explained in an official statement he had held phone conversations with the SGRF's chief executive Abdulsalam Al-Murshidi, whose fund owns a 30% stake at KTB.

Both sides dismissed speculative claims that shareholders had not been invited to take part in the search for a viable solution regarding the bank's future.

The government will also give the fund an opportunity to secure the resource necessary (capital and liquidity) for the troubled bank, and the state is to intervene according to its legal competences only if shareholders fail, the message also reads.

Bulgaria's Finance Ministry is of the opinion that finding a "private" solution that does not require "public resources" is the most desired way out of the situation.

The latest developments come after the Bulgarian National Bank (BNB) announced Friday last week plans to suspend the license of KTB and to nationalize its subsidiary Credit Agricole Bulgaria after announcing auditors had discovered illicit banking practices.

An inspection was carried out at the bank after BNB placed it under conservatorship in mid-June following the exhaustion of its liquidity.

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Tags: Abdulsalam Al-Murshidi, State General Reserve Fund, SGRF, Sultanate of Oman, Corporate Commercial Bank, KTB, BNB, conservatorship
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