Bulgaria's Ombudsman Predicts 'Avalanche Of Lawsuits' Regarding KTB

Bulgaria's courts will be flooded by “an avalanche of lawsuits” with connection to the Corporate Commercial Bank (KTB), Bulgaria's Ombudsman Konstantin Penchev told the BNR public broadcaster.

According to him, the deposits with preferential interest rates would pose a problem, as they, by law, are not covered by the Deposit Guarantee Fund. “Then there would be the people with deposits above EUR 100 000,” Penchev commented. “How come you bankrupted this bank – four months you did nothing to save it and deliberately kept it shut – they would ask.”

Penchev admitted that as a private citizen he believes nothing he hears about KTB. According to him, in those four months people have been lied to and have been fed contradicting information. “Let alone the years in which this bank grew and grew and increased its capital three-four times, protected by the politicians,” Penchev said.

Penchev noted that if the audit report turns out to be true, the Central Bank (BNB) must take away the license of KTB immediately. “The initial reports were optimistic,” he said. “Then, after four months of silence from BNB, suddenly turns out KTB was not a bank, but a black hole. Is it hard to tell the difference between a bank and a black hole?”

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