Bulgarian Parliament Implements KTB Committee

Bulgarian National Assembly has created a temporary committee to review the facts and circumstances around the actions of government institutions that had to oversee developments at Corporate Commercial Bank (KTB) in the period 2009-2014.

The decision was taken in Parliament Thursday after an agreement document has been signed by all political parties.

The document allege that "The fund leak in KTB that has led to its bankruptcy is the most massive financial fraud in the new history of Bulgaria... As a result, over BGN 4 B have been spent from the Bulgarian Deposit Insurance Fund, as well as additional funding from the state budget has also been used. A number of people who had deposited their money in the bank have irreversibly lost it.''

Meanwhile, last October the interim budget committee approved amendments to the Credit Institutions Act, obligating Bulgaria's Central bank (BNB) to save banks whose capital becomes a negative quantity, thus approving the KTB bailout.

The main reason was stated to be the fact that a number of Bulgarian national companies and municipalities had deposits in the bank.

Among the motifs for the committee formation on Wednesday was also stated to be the role of the Banking Supervision unit to the Bulgarian National Bank (BNB). It has been pointed out that it remains unclear whether the lack of action on its part has been a result of individual mistakes or systematic problems.

The State agency for National Security (DANS) has also been blamed on account of lack of prompt action on its part.

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