Matthias's Feed
Oct 5, 2014

Rightist party seen winning Bulgaria’s ‘last chance’ election

SOFIA (Reuters) – The center right GERB party looked set to win Bulgaria’s “last chance” snap general election on Sunday but will fall short of a majority, a result that could mean another shaky coalition struggling to solve a bank crisis and revive growth.

GERB’s leader, a former bodyguard and karate expert, warned it would be difficult to form a government in light of the exit poll results, but added his party would hold internal discussions on Monday on how to proceed.

Sep 30, 2014

Romania Raiffeisen CEO says consolidation is ‘unavoidable’

BUCHAREST (Reuters) – Consolidation in Europe’s banking sector is unavoidable and could partly be triggered by the current asset quality review (AQR) of European lenders, Raiffeisen Bank Romania CEO Steven van Groningen told Reuters.

Van Groningen said at the Reuters Eastern Europe Investment Summit that Raiffeisen could look at taking over a smaller local lender if the price was right and it presented good value, but such a decision would ultimately be up to the bank’s shareholders.

Sep 25, 2014

European Commission begins action against Bulgaria over bank crisis

BUCHAREST/SOFIA (Reuters) – The European Commission said on Thursday it was opening infringement procedures against Bulgaria over its bank crisis and expects customers at Corporate Commercial Bank (Corpbank) to be given immediate access to their deposits.

The Commission has sent a formal notice to Bulgaria, and Sofia has until Oct. 15 to respond.

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.