The State General Reserve Fund of Oman has taken legal action against Bulgaria, seeking to recover the book value of its investment in collapsed Corporate Commercial Bank, Sofia-based 24 Chasa daily reported on Monday.

The Omani sovereign wealth fund was also reportedly seeking interest payments for the period from the putting of the bank under the Bulgarian central bank’s control to the date when it was declared insolvent, 24 Chasa said.

The Bulgarian National Bank (BNB) put the country’s fourth-largest lender under direct administration on June 20, 2014 following a run on deposits, suspending shareholders’ rights. In April, Corporate Commercial Bank, known by its Bulgarian acronym KTB, was declared insolvent as of November 6, 2014 – the date when the BNB suspended its banking licence. 

The SGRF owned 30% of KTB through Bulgarian Acquisition Company II S.a.r.L. 

Experts estimate the total SGRF claim at EUR 720 M, according to 24 Chasa.

The claim against Bulgaria’s Finance Ministry had been filed with an European court of arbitrage, the newspaper said, citing ‘informed sources’. It didn’t elaborate.

The Finance Ministry has confirmed to 24 Chasa that the Omani fund has started legal action. They also told the newspaper they were preparing their defence but declined to comment.

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