PM Bliznashki: Central Bank Ignored Irregularities In Banking Sector

Finance | September 8, 2014, Monday // 19:26|  views


The Bulgarian National Bank kept its eyes shut for many irregularities in the financial sector, Bulgaria's caretaker Prime Minister Georgi Bliznashki told  bTV national channel. 

In Bliznashki's words, the situation with the Corporate Commercial Bank (KTB) was a “ticking time bomb” and hinted at eventual similar problems in the banking sector. 

“The financial supervision of BNB kept its eyes shut for many irregularities, I think also on other matters, but currently the prosecutor's office is making an analysis,” Bliznashki told bTV. “There are unpleasant occurrences and they are multiplying. It is a good thing that some positive steps were made, but we ignored the problems for too long, at a time when the power was held by people who are passing themselves for financial experts.”

Bliznashki refused any further details with the argument that the prosecution was still working on the matter and urged KTB majority owner Tsvetan Vasilev to come back to Bulgaria, because he “has to answer many questions”. “I believe the judicial authorities also have some questions for him,” Bliznashki said.

Bliznashki commented that the proposal of caretaker Finance Minister Rumen Porozhanov to pay off small sums to the petty KTB depositors would calm them down, but pointed out that the decision for this was of the bank alone. 

“We should have results of the audit in the beginning of October, but there might be an extension of the deadline”, Bliznashki said.

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Tags: KTB, BNB, supervision, Tsvetan Vasilev, depositors, banking sector, financial sector, prosecution

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