Omani Sovereign Fund Said to Be Seeking EUR 720 M from Bulgaria over KTB Collapse

Business » FINANCE | October 26, 2015, Monday // 22:35
Bulgaria: Omani Sovereign Fund Said to Be Seeking EUR 720 M from Bulgaria over KTB Collapse The head office of collapsed Corporate Commercial Bank (KTB) in Sofia. File photo

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.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Finance » Be a reporter: Write and send your article
Tags: Bulgaria, State General Reserve Fund, Oman, KTB, BNB, Corporate Commercial Bank
Advertisement
Advertisement
Expats.bg All Are Welcome! Join Now!
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria