Oman 'Takes Legal Action' against Bulgaria over KTB - Reuters

Business » FINANCE | July 8, 2015, Wednesday // 19:02
Bulgaria: Oman 'Takes Legal Action' against Bulgaria over KTB - Reuters

The State General Reserve Fund (SGRF), Oman's biggest sovereign wealth fund, has launched legal action against the government of Bulgaria over the collapse of Corporate Commercial Bank (KTB), Reuters reported on Wednesday.

SGRF was the second-largest shareholder in KTB and had a 30-percent stake in what was once Bulgaria's fourth-largest lender.

KTB was exposed to a bank run in June of last year and placed under supervision.

Speaking on the condition of anonymity, a source at the SGRF told Reuters that "the arbitrations is in European courts" and that the plaintiffs demand "to get book value" of their investment "as per day the bank was stopped as well as interest."

Bulgaria's Finance Ministry has not complied with a request to comment, Reuters added.

This comes on the day a special committee with Bulgaria's Parliament accused KTB's majority shareholder Tsvetan Vasilev of running the bank as a "pyramid" scheme.

Though the businessman Vasilev has not yet commented, he has consistently denied the allegations in previous statements, arguing there was a political plot against him and his bank to get access all of its assets.

You can read the full story here.

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Tags: Corporate Commercial Bank, KTB, State General Reserve Fund, Oman, SGRF, Tsvetan Vasilev
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