KTB 'Holds 90%' of Bulgarian Defense Industry Assets -Former DefMin

Politics » DEFENSE | July 20, 2014, Sunday // 14:48
Bulgaria: KTB 'Holds 90%' of Bulgarian Defense Industry Assets  -Former DefMin Former Defense Minister Boyko Noev. Photo by BGNES

Former Defense Minister Boyko Noev argued 90 percent of assets held by Bulgaria's military industry are stored in Corporate Commercial Bank (KTB).

Noev, who has held the office two times (1994-1995, 1999-2001) explained in an interview with Bulgaria on Air channel that a deal among foreign-owned banks prevented them from working with the Bulgarian arms business.

KTB, Bulgaria's fourth-largest lender and the second-largest domestically-owned bank, is facing suspension of license from central bank BNB, and its subsidiary Credit Agricole Bulgaria is to be nationalized.

In Noev's words, UniCredit Bulbank, Reiffeisen and Allianz, which are among the largest banks operating in the country, have seen a ban to receive military-rank officials or affiliated companies imposed by the management.

"In normal states, banks are not canteens... or usual firms, they are an element of statehood and security. Every attack at them is an attack at security," he added.

He described a state intervention to guarantee customers' savings in cases such as KTB as a "necessary step".

The Bulgarian National Bank, and also the government, have pledged to safeguard customers' deposits up to EUR 100 000, the amount guaranteed under the law.

Ruling Bulgarian Socialist Party (BSP), however, has already proposed that laws be amended to "save" even the sums beyond that threshold.

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Tags: Boyko Noev, Corporate Commercial Bank, KTB, military industry, Credit Agricole Bulgaria, BNB, BSP, deposits, UniCredit Bulbank, Reiffeisen, Allianz
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