Thursday, May 5, 2016

Bulgaria: more than one billion euros from the bankrupt bank KTB unrecoverable – Banker

              More than 2.5 billion leva (approx. 1.25 billion) of loans granted by the collapsed two years ago Bulgarian bank KTB can not be recovered; you can count on the return of at most 750-800 million leva – according to a report released Wednesday consulting firm AlixPartners.
           

 
 
 

The authorities in Sofia commissioned the British firm to investigate the causes of the bankruptcy KTB and, if possible, determine where flowed from him almost all the money. Corporate Commercial Bank (KTB), the fourth largest bank in Bulgaria, was closed in June 2014 and a year later the court announced its bankruptcy.


 

The report drawn up in September 2015 but by Wednesday the document was secret and available only to Members of Parliament in the office. While reading the 375-page report MEPs were not allowed to take notes. On Wednesday, a document declassified by resolution of Parliament and published. According to experts, is currently recovering even mentioned in the report 750-800 million leva (375-400 million euros) this variant too optimistic, and the losses will be greater.
 

KTB loan portfolio consists of 243 corporate clients, including those who have supported 472 loans – the report states. Credit granted without reasonable insurance, including the newly established companies with good credit history, own capital and funding sources and companies that have bought shares in indebted companies. Reciprocal links were so complicated that reaching the borrowed money by KTB proved impossible.


 

KTB was involved in suspicious transactions already in 2003.


 

According to AlixPartners there are grounds for criminal prosecution auditor KTB – the Bulgarian branch of KPMG, which audits conducted in the last five years, the bank’s activity (2009-2014). So far, the only person punished is a former deputy central bank governor Tsvetan Gunew, who was responsible for banking supervision.


 

Contrary to what is commonly believed to date, faulty financial policy KTB ran long before 2009 – in the assessment report. The first transactions, which should have arouse vigilance supervision of the central bank carried out yet in 2003, but the central bank did not react to obvious warning signs and uncritically approve the results of audits carried out on the basis of falsified data.


 

Bankruptcy KTB led not only to perturbations in the Bulgarian banking system, but also undermine the financial stability of the country. Bank guarantee fund did not have sufficient funds to pay customers of guaranteed deposits to 100 thousand. euro and had to borrow from the Treasury nearly $ 1 billion. This in turn meant that Bulgaria had to take out loans on the international financial market, which – according to the latest data – foreign debt of the country increased from 22 per cent. Of GDP in 2014 to 28.1 per cent. in 2016 and may be increased by 0.7 percentage points. in 2017.

 

“Bank of authority”

 

The report confirmed that KTB is no accident called the bank authority. The contributions were in the over 50 ministers, deputy ministers and members of their families, as well as 65 members, 184 judges, 152 prosecutors, 132 representatives of special services at high levels, 150 mayors and deputy mayors. Deposits up to 100 thousand. euro recovered, but they are gone. After losing all savings in the amount of 1 million seriously ill culture minister, known sculptor Mr Vezhdi Rashidov.


 

The owner KTB Tsvetan Vassilev is in Serbia. Bulgarian prosecutors still fall 2014 called on the Serbian authorities for his extradition, but these delaying the decision.


 

From Sofia Ewgenia Manołowa (PAP)

 

The man / akl / mc /

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