Directors of KTB Address Bulgarian PM, Warn Him of Deception

Depositors queue in front of Corporate Commercial Bank (KTB). Photo: BGNES/EPA

The four executive directors of collapsed Corporate Commercial Bank (KTB) on Thursday addressed Bulgarian Prime Minister Boyko Borisov in a letter, in which they expressed concern that he was being deceived.

In the letter they explain the functioning of the Bulgarian Deposit Insurance Fund (BDIF) and dismiss accusations hurled at KTB, private bTV station reported.

The directors launch an attack on the nine banks chosen by the BDIF to pay off the state-guaranteed deposits at KTB, focusing especially on UniCredit Bulbank and First Investment Bank.

Furthermore, they again criticise the governance of the Bulgarian National Bank (BNB), pointing to the key role its governors had played in the collapse of KTB.

The directors rely on the continuous policy of the government to seek responsibility from the officials, who through their actions carried out an attack against the national security of Bulgaria.

The directors remind that KTB had made a contribution of BGN 89 million to the BDIF.

They point that at the time the BDIF started paying off the guaranteed deposits on 4 December 2014 it had only BGN 1 billion available.

The directors state that the remaining BGN 2.7 billion needed for paying off the guaranteed deposits at KTB in the next five years, will be provided to BDIF in the form of a government loan.

They want to know the criteria according to which the BDIF had chosen the nine banks tasked with paying off the guaranteed deposits at KTB.

 

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