Bulgarian Govt Mulls Restructuring Its Private Bank Deposits
Bulgaria's caretaker Prime Minister, Marin Raykov, has issued an order to establish a work group to create rules for transparency in the selection of a particular bank for depositing monies of State companies.
The information was published Tuesday on the official internet page of the government.
The goal is to have universal rules to be adhered to by all Ministers and State companies.
Raykov will personally lead the work group, which includes all Ministers whose institutions manage State companies and Finance Minister, Kalin Hristov.
Currently, there are no such rules. In May 2010, the Finance Ministry published a report revealing that 48% of the monies of State-owned enterprises and 95% of the deposits of the energy holding, which adds up to more than BGN 76 M, are managed by one bank – Corporate Commercial Bank, CCB.
In November, 2011, former PM Boyko Borisov said if the State was to withdraw its money from CCB, the bank would become insolvent, triggering a domino effect.
The majority owner of CBB, Tsvetan Vassilev, gave a rare interview, published Monday in the Austrian Der Standart daily, where he confirmed his bank holds most of the monies of State energy companies, but stressed there were hundreds of other State-owned enterprises that were not CCB clients.
In the same interview, he accused President Rosen Plevneliev of providing cover-up and protection for particular business interests.
- » Forex Trading Basics- Setting up a Demo Account
- » Fitch Ratings Agency Re-Affirmed Bulgaria's Credit Rating
- » Bulgaria to Join the ERM II Currency Mechanism Later than the Announced Deadline
- » Eurostat: Euro Area Annual Inflation up to 1.4%
- » NSI: Total Average Income per Household Member in Q4 2019 was BGN 1,770
- » Minister Vladislav Goranov: The Bulgarian Currency is Undervalued