Bulgaria's Central Bank Revokes KTB License

Bulgaria's Central bank (BNB) revoked the banking license of troubled Corporate Commercial Bank (KTB), said BNB in a press statement, dated November 6.

The BNB managing board established a negative capital of KTB to the amount of BGN – 3.74 B and that the bank does not comply with the legal requirements. Hence, BNB requested that the "corresponding court" starts an insolvency procedure. 

In accordance with the Bank Bankruptcy Act, BNB requested that the Bulgarian Deposit Insurance Fund be informed of the procedure and commence preparation for appointment of an assignee in bankruptcy.

Until this happens, the stewards Stanislav Lyutov and Elena Kostadincheva will continue with the fulfillment of their duties.

Earlier on Thursday BNB revoked KTB's license from March 2014 to increase its capital by EUR 35 M and referred the matter to the Prosecutor's Office.

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