Bulgaria CorpBank bond slips to 45-50 cents in dollar on default fear

LONDON, July 16 Wed Jul 16, 2014 9:57am EDT

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LONDON, July 16 (Reuters) - The dollar bond of Bulgaria's troubled Corporate Commercial Bank was marked to record lows around 45-50 cents in the dollar on Wednesday, traders said, amid fears no rescue plan for the bank will be approved before parliament dissolves in early August.

Finance Minister Petar Chobanov said on Wednesday Bulgaria was considering a solution to help the bondholders, but his government has struggled to reach a consensus with political parties on the terms of the rescue of CorpBank, which requires a special law to be passed in parliament.

The bond, which matures on Aug 8, traded at par as recently as mid-June. But analysts were pessimistic a deal can be reached in time because parliament is due to dissolve on Aug 6 before elections. (Reporting by Sujata Rao, editing by John Stonestreet)

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