Nearly All Bulgargaz's Money Held in KTB

Business » FINANCE | August 1, 2014, Friday // 11:06| Views: | Comments: 6
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Bulgaria: Nearly All Bulgargaz's Money Held in KTB Photo by BGNES

Bulgaria's state-owned gas supplier Bulgargaz has some 98.5% of its assets stored in Corporate Commercial Bank (KTB), data from the Economy Ministry shows.

A report cited by daily 24 chasa contains a list of companies holding over BGN 3 M in a single bank.

Only entities for which the sum accounts for more than a quarter of their assets are included.

KTB was placed under special supervision by Bulgaria's central bank BNB after rumors about its prospective collapse depleted its liquidity.

On Thursday, the Bulgarian National Bank (BNB) announced plans to extend the conservatorship period for the second time. Corpbank was due to open on September 21 (and not on July 21, as previously expected).

A regular inquiry at the Economy Ministry shows Bulgargaz's net exposure at KTB was far beyond one-quarter as of December 30, 2013 (72.62%).

Surprisingly, the gas utility is missing from the inquiry in March this year, which would suggest it has less than 25% stored in any bank.

In an interview with the Bulgarian National Television on Friday, Economy Minister Dragomir Stoynev did not deny the July figures.

Other state-owned energy entities also have significant amounts deposited there, including the Bulgarian Energy Holding BEH (25.08%) and gas transmission and storage operator Bulgartransgaz, a BEH subsidiary (45.38%).

Corpbank's conservatorship means operations at the bank are halted, which means companies holding assets there are unable to deliver on their current payments.

Bulgargaz is now to pay a BGN 23 M worth fine under a ruling by the Commission for Protection of Competition (CPC) after the watchdog declared it was abusing its dominant position by imposing dishonest commercial practices.

The sum is just 0.5% of its annual turnover.

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Tags: Bulgargaz, Corporate Commercial Bank, KTB, Corpbank, Economy Ministry, special supervision, conservatorship, BEH, Bulgartransgaz
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» To the forumComments (6)
Warfou2 - 2 Aug 2014 // 12:34:02

Hint: It's not Russia that has some financial troubles ;)

So back on topic, what was the story again about Russia trying to collapse the bank of their main partners where A russian bank is a major shareholder?

Naydenov - 2 Aug 2014 // 01:40:11

Thank you Uncle Sam, with your generous contributions for me writing here I have just bought a Cadillac Escalade. LOL.

With Russians it's always three things if you disagree with them:

1. You are a liar who wants to destroy Putin and Russia
2. You are a fascist out to destroy Putin and Russia
3. You are paid by the USA/CIA to destroy and distort Putin and Russia

Check out how things work in Equatorial Guinea and their dictator Obiang. Russia starts looking more and more like this African country full of "sunburnt" subjects every day.



Optimistic - 1 Aug 2014 // 22:39:32

Yes Warfou you are correct.

There is so much facist anti Russian crap posted on this forum that it must be paid for by the US.

Warfou2 - 1 Aug 2014 // 21:54:30

And then no more reaction from the Putin/Russia bashers on this forum.
Happens every time, when it becomes obvious it again is Putin propaganda and nothing that even comes close to real facts then no more replies so the thread disappears in the bottom of the forum.

You know what I think?
At least a few of the suckers here are paid to post anti-Putin/Russia propaganda. And/or work for EU/US/state institutions.

It used to work but now it is so unreal more and more people understand what is happening. It isn't working any more, like all the other tricks that kept the boat from sinking.
I guess the time of the sinking part is finalising...

Dogfish - 1 Aug 2014 // 14:32:37

A most original case of insider dealling......

Warfou2 - 1 Aug 2014 // 13:14:42

Off course the Russians wanted their partners to loose their money, they always do this with their partners so they tried collapsing the banks of their partners where a Russian bank even is a shareholder.

Grin Grin.

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