KTB Majority Owner Appeals Banking Licence Withdrawal

Business | November 19, 2014, Wednesday // 19:15|  views

The majority shareholder in Bulgaria's collapsed Corporate Commercial Bank, or KTB, has appealed the central bank's decision to scrap KTB's banking licence, frognews.bg reported on Wednesday.

Bromak, a company owned by Tsvetan Vasilev, is KTB's majority shareholder. The appeal was filed with the Supreme Administrative Court (SAC).

According to unnamed sources, other shareholders and many depositors in KTB have also submitted appeals against the central bank's decision with SAC, the media outlet said.

Under Bulgarian law, the appeals stall the insolvency lawsuit against KTB launched by BNB with Sofia City Court earlier this month. The insolvency proceedings could only resume after SAC rules on the appeals.

KTB, Bulgaria's fourth largest lender, has been closed since June 20 following a bank run. The central bank, BNB, revoked KTB's banking licence on 6 November and asked Sofia City Court to declare KTB insolvent the following day.

KTB shareholders and depositors claim in their appeals that the BNB and the administrators it had appointed at KTB severely violated more than 30 regulations and procedures provided for in European Commission directives as well as national legislation, frognews.bg said.

The appeals don't prevent the repayment of state-guaranteed deposits of up to BGN 196,000 with KTB which is due to begin on 4 December.

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Tags: Tsvetan Vasilev, Bromak, insolvency, banking licence, BNB, KTB, Sofia City Court, Corporate Commercial Bank, deposits

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