Vladimir Karolev: Central Bank's Dependence on Politicians 'Evident'

Economist Vladimir Karolev said the Bulgarian National Bank had made a mistake by not admitting that its actions were politically motivated.

Commenting on events around the Corporate Commercial Bank (KTB), which is to be stripped of license by the central bank, he told private national channel TV7 that "politicians should not say there are problems with the banking system, because there are none."

"With financial expert Emil Harsev we are unanimous that in the case of the bank, we are witnessing the utter helplessness of the state in all its forms and the dependence of BNB on politicians," Karolev added.

He stressed the Omani State General Reserve Fund (SGRF) was already seeking "anyone in Europe" to become a majority shareholder at KTB, in order "to save its money and assets".

Harsev, who took part in a discussion alongside Karolev, pointed that the market believed KTB could be bailed out even without taxpayers' money.

The two experts were invited to state their opinions a day after reports emerged that the SGRF was drafting a plan to help troubled KTB.

Bulgaria's government says it would give shareholders the opportunity to assist in saving the bank before it opts for an intervention.