Forbes: 'The Bulgarian Banking Disaster'

An analysis of the latest developments in the case of Bulgaria’s Corporate Commercial Bank by Frances Coppola has been published on the website of Forbes magazine.

Under the headline “The Bulgarian Banking Disaster” Coppola who is a Forbes contributor draws the attention to the different treatment of Corpbank and First Investment Bank by Bulgaria’s central bank which she claims “is both incompetent and politically captive”.

The author opines that  “EU authorities must now intervene”,  as “a financial collapse in Bulgaria would be disastrous for the entire Balkan region.”

According to Coppola, the recent failure by Corpbank to make the final payment on its dollar-denominated bond "raises questions about the trustworthiness of the Bulgarian authorities.”

In addition, Coppola argues, “shabby treatment of depositors raises questions about the commitment of the Bulgarian authorities to the responsibilities of EU membership.”

The author is quoting the opinion of a source described as “close to” Corpbank’s majority owner Tzvetan Vasilev, according to whom “the ultimate objective of those behind the failure of the bank was to destabilize the Bulgarian banking system, break the currency board and cause a repeat of the 1996 financial collapse and hyperinflation.”

The full text can be found here.

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