Matthias's Feed
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.

Jun 22, 2014

Bulgaria ready to rescue Corpbank after bank run

SOFIA, June 22 (Reuters) – Bulgaria is ready to rescue
Corporate Commercial Bank (Corpbank) by injecting capital and
enforcing losses on shareholders, the central bank said on
Sunday, after a run on the country’s No. 4 lender prompted the
central bank to take it over on Friday.

The central bank said the government was also prepared to
inject capital into a subsidiary that Sofia-listed Corpbank
recently bought from France’s Credit Agricole
and which has been taken over by the central bank as well.

Jun 20, 2014

Run on Corpbank prompts Bulgarian central bank to seize control

SOFIA, June 20 (Reuters) – A run on Corporate Commercial
Bank (Corpbank) prompted Bulgaria’s central bank to
take control of the country’s fourth-largest lender on Friday
and its governor appealed to depositors to stay calm.

The Bulgarian National Bank (BNB) said it would handle
Corpbank’s operations for three months and removed its
management and supervisory board after the run, which was
sparked by media reports of shady deals involving the bank.

Jun 18, 2014

Bulgaria’s likely next PM says will build South Stream only if EU happy

SOFIA (Reuters) – Bulgaria must push ahead with the Russian-backed South Stream gas pipeline project only if it complies with all European Union laws, opposition leader Boiko Borisov, the front-runner to be the next prime minister, told Reuters on Wednesday.

Borisov said that should he form the next government after early elections, he will also exclude any company from bidding to build the project if it is subject to sanctions imposed by the United States or EU over the Ukraine conflict.

May 28, 2014

EU’s Balkan citizens take anti-immigrant vote in their stride

BUCHAREST (Reuters) – Britons have a right to worry if Romanians move in next door, or so says the man who triumphed in European Parliament elections. But despite such hostility, Romanians themselves still cherish the European Union as their best chance of escaping poverty.

Some fear a deepening demonization of immigrants from Romania and neighboring Bulgaria following last weekend’s victories of right-wing Eurosceptic parties in France, Denmark and Britain, where the UK Independence Party of Nigel Farage trounced the established parties.