Intl Consortium Proposes to Inject BGN 2.3B in Bulgaria's KTB - FinMin
An international consortium has proposed to Bulgarian authorities to invest BGN 2.3B in troubled Corporate Commercial Bank (Corpbank or KTB), carateker Finance Minister Rumen Porozhanov said on Friday.
Speaking on bTV channel, Porozhanov said the proposal of State General Reserve Fund of Oman, Vienna-based EPIC Group and GemCorp Capital LLP was submitted to Bulgaria’s government, finance ministry and central bank late on Thursday.
“We’ll discuss it today,” Porozhanov said.
Vera Ahundova, an economist representing a group of KTB depositors who’ve had their money blocked in the bank since June, told bTV the consortium was proposing to have 50% ownership of KTB after its investment, with the other half to be held by the Bulgarian state.
According to a fascimile of the proposal available on the website of Bulgaria's central bank BNB, the consortium said it expects the Bulgarian government to contribute up to BGN 2.3B in cash through the Bulgarian Development Bank or another institution as a capital injection into KTB.
The potential investors estimate the value of KTB’s assets and loan collaterals at more than BGN 9.8B, Ahundova explained, adding that the bank could turn to profit in 2-3 years.
According to Porozhanov, the proposal represents the consortium’s idea of a recovery plan but it needs to be complemented by clear guarantees regarding the resources they intend to invest to prove their commitment.
On Friday morning, Bulgarian lawmakers started discussing an audit report submitted to the central bank last week which suggests the central bank expects KTB to report negative equity capital, a condition for revoking its license within 20 days and starting repayment of state-guaranteed deposits in KTB of up to EUR 100,000 each.
The audit report on the state of Bulgaria’s fourth-largest lender, which was put under conservatorship by the BNB on June 20 following a deposits run, was prepared by AFA OOD, Deloitte Bulgaria OOD and Ernst & Young Audit OOD.
The report pointed to impairment charges of BGN 4.222B on assets of BGN 6.662B at KTB as of end-September, the central bank said earlier.
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See the first picture from this article: http://www.infoaboard.com/entertainment/travel/hotels/fitzgeralds-las-vegas-casinos-fremont-street/ the character with the cap wellcoming everyone at the casino - the same is with KTB a funny man told us that he will give our money back....no way