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Aug 11, 2014

Bulgaria’s Corpbank misses final bond payment -sources

LONDON, Aug 11 (Reuters) – Bulgaria’s Corporate Commercial
Bank (Corpbank) failed to make the final payment on a
dollar-denominated bond that matured on Friday, two bondholder
sources said, increasing the risk bondholders will take legal
action against the state.

A group of angry Corpbank depositors protested on Monday in
front of the central bank in Sofia, demanding access to their
accounts. Deposits have been frozen even though Bulgarian law
provides for a deposit guarantee of up to 100,000 euros.

Aug 5, 2014

Bulgaria to decide on Corpbank in mid-October: President

SOFIA, Aug 5 (Reuters) – Bulgarian authorities will take a
decision on what to do with Corporate Commercial Bank (Corpbank)
only after the results of an audit are known around
mid-October, President Rosen Plevneliev said on Tuesday.

The fate of Bulgaria’s fourth-largest lender has been in
limbo as efforts to rescue the bank were scuttled by the
outgoing parliament, dragging out the Balkan state’s worst
banking crisis since the 1990s. Authorities have estimated the
cost of a possible state rescue at around 1.5-2.0 billion levs
($1.0-1.4 billion).

Aug 5, 2014

Troubled Bulgaria names law professor as interim premier

SOFIA (Reuters) – A Bulgarian law professor and former Socialist lawmaker was named caretaker prime minister on Tuesday for two months as the Balkan state grapples with the fallout of its worst banking crisis since the 1990s.

Georgi Bliznashki, 57, took over as premier while Rumen Porozhanov, a 49-year-old former senior civil servant, will be finance minister, President Rosen Plevneliev said in a televised statement.

Jul 31, 2014

Exclusive: Bondholders may sue Bulgarian government over Corpbank default – sources

BUCHAREST (Reuters) – Holders of dollar-denominated bonds at Bulgaria’s Corporate Commercial Bank (Corpbank) 6C9.BB are gearing up for legal action against the government if the bond defaults and the bank is tipped into insolvency, two sources told Reuters on Thursday.

A default has looked increasingly likely after a run on deposits at Corpbank in June, which prompted the central bank to seize control of Bulgaria’s fourth-largest lender, shut down its operations and block depositors from taking out money.

Jul 31, 2014

Bondholders may sue Bulgarian government over Corpbank default: sources

BUCHAREST, July 31 (Reuters) – Holders of dollar-denominated
bonds at Bulgaria’s Corporate Commercial Bank (Corpbank)
are gearing up for legal action against the government
if the bond defaults and the bank is tipped into insolvency, two
sources told Reuters on Thursday.

A default has looked increasingly likely after a run on
deposits at Corpbank in June, which prompted the central bank to
seize control of Bulgaria’s fourth-largest lender, shut down its
operations and block depositors from taking out money.

Jul 25, 2014

Bulgaria risks turning bank woes into “gold mine” for blackmail: president

SOFIA (Reuters) – Bulgaria’s President Rosen Plevneliev urged lawmakers on Friday not to try to hush up the activities at troubled lender Corporate Commercial Bank (Corpbank) or risk opening themselves up to blackmail about their connections to it.

Clients unnerved by reports of shady deals by Corpbank’s main owner withdrew more than a fifth of deposits in a week-long bank run in June, forcing the central bank to take control of the lender, shut down its operations and order an audit.

Jul 25, 2014

Bulgaria’s Corpbank bonds set to default in August: source

SOFIA, July 25 (Reuters) – The dollar bonds of Bulgaria’s
Corporate Commercial Bank look set to default on their
Aug. 8 maturity date with no way found to rescue the lender so
far, a source familiar with the situation said on Friday.

The government resigned on Wednesday without reaching an
agreement with lawmakers about how to rescue the lender, which
was hit by a run on deposits in June. Parliament earlier in July
rejected a proposed rescue package and has a rapidly shrinking
window to approve one before it is dissolved on Aug. 6.

Jul 4, 2014

Accusations fly in Bulgaria’s murky bank run

SOFIA, July 4 (Reuters) – One worker at Bulgaria’s Corporate
Commercial Bank knew panic was setting in when she
spotted colleagues among the anxious depositors lined up to
withdraw cash from the troubled bank.

The alarm came in part because the week before, on June 13,
with television news crews filming, Bulgarian state prosecutors
had raided a building in Sofia that housed Corpbank offices.

Jun 24, 2014

Bulgaria PM signals Corpbank to be nationalised by July

SOFIA, June 24 (Reuters) – Shareholders are unlikely to
rescue Bulgaria’s Corporate Commercial Bank (Corpbank), Prime
Minister Plamen Oresharski said on Tuesday, the strongest signal
yet the country’s fourth- largest lender will be nationalised by
July.

Customers rushed to withdraw money from Corpbank last week
after media reports of suspect deals involving the bank. The
country’s central bank took control of Corpbank, froze its
operations and started rescue talks.

Jun 23, 2014

Bulgaria to nationalise Corpbank if shareholder talks fail

SOFIA, June 23 (Reuters) – Bulgaria will nationalise
Corporate Commercial Bank (Corpbank) by July 21 if
shareholders fail to provide the country’s fourth-largest lender
with the funding it needs after a run on deposits, the finance
minister said on Monday.

Customers unnerved by media reports of suspect deals
involving Corpbank and its top shareholder queued to withdraw
their money last week, prompting the central bank to take
control of the bank, freeze its operations and order an audit of
its books.