Bulgaria's Corpbank facing bond repayment deadline

  • 2/10/2023
  • 22:52
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SOFIA, Bulgaria, Shawwal 11, 1435, Aug 7, 2014, SPA -- At the end of its first week in office, Bulgaria's interim government is facing its first serious challenge with the expectation that the Corporate Commercial Bank, or Corpbank, won't repay a $150 million bond maturing this Friday, AP reported. If it doesn't, then Bulgaria's fourth-biggest lender will have defaulted on its bonds, further fueling the economic and political crisis in the European Union's poorest country. The crisis at the bank, which has been closed since it was hit by a weeklong bank run in June, has added to the woes of the Balkan country and even prompted a rebuke from the bloc's executive branch, the European Commission. Corpbank has been under the control of the central bank since June after rumors of liquidity shortfalls and of shady deals by Corpbank's main owner prompted clients to withdraw more than a fifth of deposits. An audit was launched and the bank's day-to-day operations were halted. Ivan Iskrov, the governor of the central bank, said key documents for loans worth $2.5 billion have most likely been destroyed, adding that most of the loans were linked to parties related to the bank's main shareholder, Tsvetan Vasilev, who is in Austria. -- SPA 22:30 LOCAL TIME 19:30 GMT www.spa.gov.sa/w

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