Tsvetelia's Feed
Jul 29, 2014

Bulgarian lawmakers vote to raise fiscal deficit and debt

SOFIA, July 29 (Reuters) – Bulgaria’s outgoing parliament
voted on Tuesday to widen the 2014 fiscal deficit target and
raise 3.4 billion levs ($2.33 billion) in new debt, giving the
next government some of the tools needed to solve the country’s
banking crisis.

President Rosen Plevneliev is due to appoint an interim
government on Aug. 6 to govern the Balkan state for two months
ahead of a general election, but it cannot raise new sovereign
debt without this parliament’s permission.

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 24, 2014

Bulgarian lawmakers pave way for election with bank crisis unresolved

SOFIA (Reuters) – Bulgarian lawmakers voted overwhelmingly to accept Prime Minister Plamen Oresharski’s resignation on Thursday, paving the way for an interim government to take over in August and a snap election in early October.

Oresharski’s departure leaves his successor to sort out the Balkan state’s worst banking crisis since the 1990s, with the fate of its fourth largest lender undecided. Bulgaria’s credit default swaps rose on Thursday to their highest level since July 4, according to Markit, the financial information services company, as investors sought insurance against losses.

Jul 24, 2014

Bulgarian lawmakers vote to accept government’s resignation

SOFIA, July 24 (Reuters) – Bulgarian lawmakers
overwhelmingly voted to accept Prime Minister Plamen
Oresharski’s resignation on Thursday, paving the way for an
interim government to take over in August and a snap election to
be held in early October.

In power for just over a year, Oresharski resigned on
Wednesday after a poor showing by his Socialist party in May’s
European elections. Those results had also led the Socialists’
junior coalition partner to withdraw its support.

Jul 23, 2014

Bulgaria’s prime minister resigns with bank crisis unresolved

SOFIA (Reuters) – Bulgaria’s Prime Minister Plamen Oresharski stood down on Wednesday, leaving his successor to sort out the Balkan state’s worst banking crisis since the 1990s with the fate of its fourth largest lender undecided.

Oresharski, in power for just over a year, had flagged his departure after the ruling Socialists’ poor showing in May’s European Parliament elections. His resignation paves the way for an interim government to take over in August and a general election in October.

Jul 23, 2014

Bulgaria’s technocrat prime minister resigns amid banking crisis

SOFIA (Reuters) – Bulgaria’s Prime Minister Plamen Oresharski stood down on Wednesday, leaving his successor to sort out the Balkan state’s worst banking crisis since the 1990s with the fate of its fourth largest lender undecided.

In power for just over a year, Oresharski’s government decided to bow out after the ruling Socialists’ poor showing in May’s European Parliament elections, paving the way for an interim government to take over in August and a general election in October.

Jul 22, 2014

Exclusive: Bulgarian central bank governor ready to step down

SOFIA (Reuters) – Bulgaria’s central bank governor Ivan Iskrov is ready to step down if parliament agrees to appoint a successor, a spokesman for the bank said, adding that Iskrov has submitted a letter with this proposal to lawmakers.

In his letter, Iskrov said that he did not want the central bank to be subject to political attacks prior to an election due to be held in October, the spokesman said.

Jul 22, 2014

Bulgarian central bank governor ready to step down

SOFIA, July 22 (Reuters) – Bulgaria’s central bank governor
Ivan Iskrov is ready to step down if parliament agrees to
appoint a successor, a spokesman for the bank said, adding that
Iskrov has submitted a letter with this proposal to lawmakers.

In his letter, Iskrov said that he did not want the central
bank to be subject to political attacks prior to an election due
to be held in October, the spokesman said.

Jul 18, 2014

Bulgaria speaks to shareholder Oman about Corpbank rescue

SOFIA, July 18 (Reuters) – Bulgaria’s finance minister spoke
to the head of Oman’s sovereign wealth fund on Friday about help
for Corporate Commercial Bank and said the government now hoped
to engineer a private rescue rather than a state bailout of the
failing bank.

Corpbank, was forced into the control of Bulgaria’s
central bank in June after depositors unnerved by reports of
shady deals by the bank’s main owner withdrew more than a fifth
of its total deposits. A subsequent audit showed activities at
the bank “incompatible with the law and good banking practices”
according to the central bank.