Depositors in Bulgaria’s Corpbank to Initiate Collective Action at ECJ, ECtHR

Depositors in Bulgaria’s troubled Corporate Commercial Bank (KTB, Corpbank) will initiate collective action against the state at the European Court of Justice in Luxembourg and the Court of Human Rights in Strasbourg.

Bozhidar Tomalevski from the initiative committee of depositors made clear Sunday that the depositors would first sign a contract with Swiss company CCI, which would be tasked with finding out who had ordered the bankruptcy of the bank.

Tomalevski, as cited by the Bulgarian National Radio, informed that transactions worth BGN 100 M denominated in different currencies had been made by KTB within 11 minutes late on June 20, the day when the bank was placed under conservatorship by the Bulgarian National Bank (BNB).

Depositors have asked senior officials at BNB and KTB to explain how the transactions had been made given that the bank had been closed.

The Bulgarian National Bank (BNB) revoked the license of KTB on Thursday and moved to launch bankruptcy proceedings.

KTB, Bulgaria’s fourth-largest lender, has been closed since June 20, when a bank run caused BNB to place the bank under conservatorship.

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