Dimitar Kostov May Head Bulgarian C-Bank’s Supervision Dept

Finance | January 15, 2015, Thursday // 20:02|  views

BNB Deputy Governor Dimitar Kostov (2-L). Photo BGNES

Bulgaria’s central bank deputy governor Dimitar Kostov is the most likely successor to Tsvetan Gounev as head of the bank’s Banking Supervision Department if Parliament dismissed Gounev, 24 Chasa news daily reported on Thursday without quoting sources.

The Commission on Legal Affairs in Parliament earlier on Thursday approved a proposal to dismiss Gounev submitted by Tsvetan Tsvetanov, chairman of the parliamentary group of GERB, the bigger partner in the minority government coalition.

If Parliament upholds the committee’s decision, Gounev, who is under criminal investigation over alleged abuse of office, will step down.

Kostov has been one of the three deputy governors of the Bulgarian National Bank (BNB) since 2005. He has been heading its Banking Department  for a second six-year term that started in June 2011.

Until June 2005 Kostov was Board Chairman of the Association of Commercial Banks in Bulgaria and executive director of commercial bank Allianz Bulgaria.

Kostov was finance minister between 1995 and 1997. He also was  Governor for Bulgaria at the World Bank (1995-1996).

According to the motives of Thursday’s decision of the Commission on Legal Affairs, Gounev has been found to have failed “to exercise proper supervisory measures relating to malpractices at Corporate Commercial Bank,” or KTB.

The BNB seized control of KTB in June following a bank run and asked Sofia City Court to launch insolvency proceedings against KTB in November.

According to the Law on the BNB, Parliament can dismiss early members of the BNB’s governing board if they have been unable to perform their duties for more than six months or have been found guilty of gross breach of their duties.

Gounev has been on leave since the middle of June 2014 when a criminal investigation against him was launched.

The Sofia Court of Appeals last month upheld a lower court ruling that Gounev should step down. Magistrates said back then they believed that if Gounev remained in his post at the BNB, he might apply pressure on his subordinates into faking testimony in the investigation.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Tags: Bulgaria, Bulgarian National Bank, Dimitar Kostov, Tsvetan Gounev, Tsvetan Tsvetanov, GERB, Central Bank, Banking department, Banking Supervision Department, KTB, Corporate Commercial Bank


» Related Articles: