90% of Insured Deposits at Bulgaria’s Corpbank Paid Off

Finance | January 8, 2015, Thursday // 14:40|  views

Radoslav Milenkov, Chair of the Bulgarian Deposit Insurance Fund (BDIF), photo by BGNES

In 20 work days, since December 4, the Bulgarian Deposit Insurance Fund (BDIF) has paid off 90% of the insured deposits at the Corporate Commercial Bank (KTB, Corpbank), or BGN 3 250 000 000, according to BDIF Chair Radoslav Milenkov.

Bulgaria guarantees bank deposits of up to EUR 100 000.

Milenkov announced Thursday at a press conference that a total of 91 300 depositors at KTB had so far disposed of the funds in their accounts.

Speaking after a meeting with Finance Minister Vladislav Goranov and the managers of the nine banks servicing customers of KTB, Milenkov made clear that around 2% of the depositors at KTB had withdrawn the money in cash.

He insisted that depositors had faith in the Bulgarian banking system.

The BDIF Chair, as cited by the BGNES news agency, pointed out that the pace of the payment of insured deposits at KTB was decelerating.

He explained that December 4, the first day when depositors had been given access to their blocked savings at KTB, had been a very busy day, yet there had been no organizational problems.

Milenkov declared that the nine banks servicing customers of KTB had paid a total of BGN 1.07 B to 25 000 depositors on December 4, adding that 55% of the deposits had been paid off in the first three days.

He announced that the percentage had dropped to 1.8% over the past 3 working days.

Milenkov thanked the Interior Ministry for the adequate cooperation.

The total amount of insured deposits at KTB is nearly 3.6 B and is owned by 255 000 customers.

Depositors at KTB had no access to their money for almost half a year as the bank was placed under conservatorship by Bulgaria’s central bank in June 2014 following a run on deposits.

Bankruptcy proceedings are underway for KTB, which had its license revoked by the Bulgarian National Bank on November 6.

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Tags: Bulgarian Deposit Insurance Fund, BDIF, Corporate Commercial Bank, KTB, Corpbank, Bulgarian National Bank, bankruptcy, conservatorship, bank run


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