Bulgaria central bank orders Corpbank unit's asset to be sold
19/11/2014 16:09
SOFIA, Nov 19 (Reuters) - Bulgaria's central bank said on
Wednesday it was extending its special supervision of Bank
Victoria, part of troubled Corporate Commercial Bank (Corpbank),
until Dec. 22 and ordered that some of the unit's assets be
sold.
The central bank said proceeds from the sales, estimated at
180 million levs ($115.50 million) would provide enough
liquidity to cover all deposits at Bank Victoria, and that
clients would regain access to their accounts from Dec. 12.
The central bank took control of Bank Victoria in June as a
run on deposits at Corpbank 6C9.BB spread to the smaller unit
in the Balkan country's biggest banking crisis since the 1990s.
"The management council of the central bank ordered the
administrators to organise the work in (such a) way that it can
start servicing depositors without any limitation on Dec. 12,"
the central bank said in a statement.
The central bank said Bank Victoria should be able to
restart full operations after Dec. 22, when its other creditor,
Corpbank, will have access to its dues and after a shareholder
meeting appoints new management.
"If it fails to do so or its reports show it does not meet
regulatory requirements, the central bank will take relevant
measures."
The central bank has already revoked Corpbank's licence
after malpractice at the bank prompted a write-off of two-thirds
of its assets. Bankruptcy proceedings against are expected to
be opened in a Bulgarian court next week. ID:nL6N0SW4FJ
Seven banks have already filed binding offers for different
loan portfolios of Bank Victoria, and the central bank said the
sales of all loans except those to big and medium-sized
corporate clients will be closed within three weeks.
The Bulgarian unit of Societe Generale SOGN.PA will buy
Bank Victoria's mortgage loans, while Tokuda Bank, owned by
Japan's Tokushukai Medical Corporation, will get small business
and consumer loans with mortgages, the central bank said.
Bulgarian Central Cooperative Bank 4CF.BB will acquire the
Bank Victoria's consumer loans and credit cards.
(1 US dollar = 1.5585 Bulgarian lev)
(Reporting by Tsvetelia Tsolova; Editing by Catherine Evans)
((tsvetelia.tsolova@thomsonreuters.com; +359-2-93-99-731;))
Keywords: BULGARIA BANKING/