11.07.2014

Ladies and Gentlemen, 
 
18, 19 and 20 June after numerous media publications and we believe the strange press conference of the then leadership of Corporate Commercial Bank, bank withdrawals were nearly 1 billion lev. 
 
On June 20, Friday at 11:40 BNB had received a request from the leadership of Corporate Commercial Bank to place the bank under special supervision on the basis of Art. 115, para. 2, paragraphs 2 and 3 of the Law on Credit Institutions. 
 
Since it is not widely known and had inaccurate interpretations in the media on initial actions of the central bank, pay attention that it is at such a request Bulgarian National Bank is obliged by law to impose special supervision. What was done - first at Corporate Commercial Bank, then under the related Credit Agricole-Bulgaria. 
 
As you know, both banks of the Group of Corporate Commercial Bank were immediately appointed conservators. On June 25, the two banks came and independent auditors to review the assets and liabilities within ten working days, which expired on Wednesday. Yesterday, Thursday, the auditor's report were submitted to the central bank. 
 
Conclusions of the review auditors in summary are: 
 
  1. The results in terms of Crédit Agricole Bulgaria-positive. This is a well-managed bank with good banking practices. The loan portfolio is very good, its provision and necessary provisions are of a sufficient level.
     
  2. Outcome of the Corporate Commercial Bank speaking mildly for actions incompatible with the law and best banking practices. Missing, and more likely to have been destroyed in the days before conservatorship, material credit record credit portfolio amounted to 3.5 billion lev from 5.4 billion lev total loan portfolio. A significant part of this portfolio shows a very high connectivity between debtors and majority shareholder Mr. Tsvetan Vassilev. 
 
As a result of lack of information auditors express an opinion, it can not evaluate the financial condition of the debtors' ability to service their loans. Can not be evaluated as well as the availability and quality of collateral, which in turn makes it impossible to draw a final conclusion on the status of the loan portfolio amounted to 3.5 billion lev Unfortunately, these actions can not be registered with the tools off-site bank supervision and suggestive of intentional abuse. 
 
These particular actions of officials in Corporate Commercial Bank is likely to lead to knowingly defrauding the bank hundreds of millions lev. It is evident that the minority shareholders of Corporate Commercial Bank are also victims of these abuses. 
 
For these reasons today will bring the auditors' report on the review of the assets and liabilities of the Corporate Commercial Bank to the attention of the Attorney General of the Republic of Bulgaria. 
 
In addition to what the state of Corporate Commercial Bank and on the basis of the data provided to us by separate check carried out by conservators themselves on July 9, 2014 with reference number 6199 already tabled at the Prosecutor another signal because of suspected criminal acts persons related to the bank. Specifically - according to conservators of June 19 this year - the day before the Corporate Commercial Bank to be placed under special surveillance by a third party downloaded and delivered against receipt of the majority owner of Corporate Commercial Bank 205 887 223 BGN equivalent in cash, mostly euro. What offense is it and what actions should be taken only by the competence of the prosecution. Investigative bodies may answer the question whether in this way is not the majority owner robbed his own bank. Prosecution of the Republic of Bulgaria can rely completely on the expertise of the Bank to reach all the way in the search for the whole truth in this criminal case. 
 
In the foregoing questions remain continue to rule the prosecution not to disturb the investigative actions. Hereinafter Bulgarian National Bank jointly with the government to focus on restructuring and turnaround "best part" of Corporate Commercial Bank in order to protect the interest of all its depositors. 
 
What action will be taken in respect of Corporate Commercial Bank and Credit Agricole, Bulgaria now? 
 
Obviously, we can not complete "barrel without a bottom," says the wise Bulgarian nation and we can not nationalized Corporate Commercial Bank in its current form, as announced on 22 June, before some inspection data. 
 
Would endanger the operation of the Bulgarian Development Bank, and a significant portion of public resources and the resources of the Bank. 
 
But the objective remains the same! And that purpose is to empower citizens and businesses can have the full amount of their funds. The only exception to this will be the majority owner companies of Corporate Commercial Bank and its affiliates and companies. 
 
What's new practical action plan already discussed between the Bank and the Government and supported by the major political parties represented in parliament? 
 
It contains numerous technical details, but in short, the measures include the following steps
 
  1. Nationalization of Credit Agricole - Bulgaria EAD; 
     
  2. Transfer of all the "good" assets and liabilities of the Corporate Commercial Bank Credit Agricole. It is important to know that this fall and all deposits of individuals and companies that it represents just a legal and accounting operation that does not affect the main - every citizen and every company will have their accounts, deposits and savings. The only exception to this stress will be the majority owner of Corporate Commercial Bank and its related companies and individuals. They will not be guaranteed by the state and remain in the CCB; 
     
  3. Providing absolute liquidity support State Credit Agricole (to be renamed) by its new owner - the state. This will be fully funded by the Guarantee Fund deposits in banks, the state budget and the Bulgarian National Bank. As necessary - so. Mechanisms that have been developed as a result of the joint work of those involved in this process, public institutions, including BNB and the Ministry of Finance;
     
  4. Licence Corporate Commercial Bank will be forfeited and will proceed with the announcement of bankruptcy. Preferential creditors of CCB (in bankruptcy) will be the state represented by the Ministry of Finance and Guarantee Fund deposits in banks; 
     
  5. None of this will be possible after the vote on the draft special law that has already been prepared and will be presented today at the main parliamentary forces. 
 
From now underway politicians! 
 
Finally, Ladies and Gentlemen, 
 
we're aware that the Bulgarian National Bank has criticized for banking supervision in this case. But what is not known to the public I want to make today - and it is under the current 1997 and is currently the Bulgarian National Bank, the legislature gave a rights and responsibilities for banking supervision function of the Deputy Governor, Head of banking Supervision. The manager and other members of the Board of the Central Bank have no direct obligations imposed or rights in respect of the current banking supervision. In this regard, we import legislative changes that will take such responsibilities. 
 
In conclusion I would like to say that over the past few weeks the Bulgarian National Bank is working in full harmony with the president of the Republic of Bulgaria and other state institutions, led by the understanding that bank stability is a primary public good. And we believe that if anyone doubted, now everyone is convinced that this is an indisputable fact. 
 
Restructuring and reorganization of the credit institution is very important for key sectors of the economy, and large Bulgarian municipalities, hospitals, companies and many thousands of people. Any other solution would be irresponsible and would lead to long-term negative social, economic and political consequences. 
 
We reiterate work rehabilitate the state bank to be opened on July 21. 
 
Of course politicians! 
 
Thank you.

Date: 11.07.2014

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