January 29, 2015 / 3:46 PM / 5 years ago

UPDATE 1-Bulgaria nominates replacement for central bank deputy after Corpbank crisis

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SOFIA, Jan 29 (Reuters) - Bulgaria’s central bank governor on Thursday nominated one of his deputies to take over the banking supervision department, following the dismissal of the previous head in the wake of a banking crisis.

“A proposal for the appointment of Dimitar Kostov was submitted to the parliament on behalf of central bank’s governor, Ivan Iskrov,” the central bank said in a statement.

Tsvetan Gounev was dismissed as the head of the banking supervision department over the failure of Corporate Commercial Bank (Corpbank) last year.

Corpbank was hit by a bank run in June, triggering the country’s worst financial crisis since the 1990s.

In June, Gounev voluntarily took leave of absence after prosecutors opened an investigation against him. He was dismissed by the parliament last Wednesday.

Former Finance Minister Kostov has been one of the three central bank deputy governors since 2005. He has headed its Banking Department since June 2011.

“Mr Kostov is a well known and respected professional not only from the banking and professional community in our country, but also by the European System of Central Banks (ESCB) and the international financial institutions,” the central bank said.

The Bulgarian parliament is expected to vote on Kostov’s nomination in the coming days.

If elected, Kostov will complete Gounev’s mandate, which had been due to expire in 2019. (Reporting by Angel Krasimirov; Editing by Andrew Roche)

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