Matthias's Feed
Nov 4, 2014

Bondholders warn Bulgaria over cost of Corpbank failure

BUCHAREST, Nov 4 (Reuters) – International creditors to
crisis-hit lender Corporate Commercial Bank warned
Bulgarian authorities on Tuesday that letting the bank fail
would be more expensive than saving it and risked years of

In a letter to the government seen by Reuters, a group of
Corpbank’s bondholders urged authorities to reconsider a rescue
offer put forward by a consortium last week that was rejected by
parliament and criticised by the central bank.

Nov 1, 2014

Romania’s Ponta in driving seat in presidential polls

BUCHAREST (Reuters) – Romanians seem likely to propel Prime Minister Victor Ponta into the presidency in elections beginning on Sunday, consolidating his leftist Social Democrat party’s hold on power, but raising questions about judicial independence.

A former prosecutor and amateur rally driver who became the European Union’s youngest prime minister two years ago, Ponta is expected to win the first round in a field of 14 candidates, but not by enough to avoid a run-off on Nov 16.

Oct 30, 2014

Romania’s Ponta heads for presidency with justice in spotlight

OPTASI-MAGURA, Romania, Oct 30 (Reuters) – Romanians are
likely to move Prime Minister Victor Ponta into the presidency
in elections that start on Sunday, offering one of Europe’s
poorest countries political stability but raising concerns about
judicial independence.

Backed by a well-oiled party machine, Ponta has led opinion
polls in the run-up to the Nov. 2/16 vote, trumpeting a record
of easing the painful spending cuts and tax hikes Romanians
endured in a 2009-10 recession.

Oct 7, 2014

Bulgarian president warns against new elections

SOFIA, Oct 7 (Reuters) – Bulgaria’s president and business
leaders urged politicians on Tuesday to agree on a new
government and avoid another election after a weekend snap poll
delivered a messy result that raises the threat of further
instability in the Balkan nation.

The centre-right GERB party won Sunday’s election but fell
dozens of seats short of a majority, setting the stage for weeks
of difficult talks with potential allies to cobble together
Bulgaria’s fifth government in two years. One GERB official
warned of another vote by Christmas if the talks fail.

Oct 6, 2014

Bulgaria election winner ready to form minority government

SOFIA, Oct 6 (Reuters) – The winner of Bulgaria’s general
election said on Monday it was ready to form a minority
government with the support of other parties, after a fractured
result that threatens more instability in the Balkan country.

Led by a former bodyguard and karate expert, the
centre-right GERB party won around a third of the vote but is
likely to find itself dozens of seats short of a majority. That
may leave Bulgaria, one of Europe’s poorest countries, with
another shaky coalition struggling to solve a bank crisis and
revive growth.

Oct 6, 2014

Rightist party wins Bulgaria election as vote splinters

SOFIA (Reuters) – Bulgaria’s center-right GERB party won a snap national election on Sunday but fell short of a majority, a result that could mean another shaky coalition struggling to solve a bank crisis and revive economic growth.

GERB leader Boiko Borisov, a former bodyguard and karate expert said his party would hold internal discussions on Monday on how to proceed. Exit polls pointed to a highly fractured result, setting the stage for days or weeks of haggling with smaller parties and the opposition.

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.