Gov't Grants BGN 28 M to Municipalities with Assets in KTB

Some BGN 28 M worth of interest-free loans have been allocated to Bulgarian municipalities having accounts at Corporate Commercial Bank, the Finance Ministry said.

In a statement released Tuesday, the institution announced that, as of September 17, 2014, five municipalities have been granted funding, while five others are still pending a decision.

The extra money have been distributed among local authorities as follows: BGN 7.7 M to Belitsa, BGN 11 M to Burgas, BGN 2.8 M to Aytos, BGN 4.5 M to Sozopol, BGN 2 M to Rakovski.

The boost the other five municipalities (Sliven, Gotse Delchev, Sungurlare, Simitli and Kazanlak) could receive is currently estimated at BGN 10 M.

Corporate Commercial Bank (Corpbank or KTB) has been under special supervision since a bank run prompted it to request the move on June 20, and therefore municipalities which have deposited their money there cannot make any payments.

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