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Bulgaria to strip troubled Corpbank of license following audit
July 11, 2014 / 9:30 AM / 3 years ago

Bulgaria to strip troubled Corpbank of license following audit

SOFIA, July 11 (Reuters) - Bulgaria will strip Corporate Commercial Bank (Corpbank) of its license, transfer its good assets and liabilities to a unit of the lender and alert prosecutors to possible malpractice at Corpbank, the central bank said.

The statement on Friday follows an audit of Bulgaria’s fourth largest-lender, which was taken under state control last month following a run on deposits by clients unnerved by reports accusing the main shareholder of shady commercial deals.

He denies any wrongdoing.

The central bank also said there was key information missing on loans worth 3.5 billion levs ($2.44 billion) and said that a significant part of the bank’s loan portfolio was linked to parties related to its main shareholder. ($1 = 1.4367 Bulgarian Levs) (Reporting by Tsvetelia Tsolova; writing by Matthias Williams. Editing by Jane Merriman)

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