The sole way to provide liquidity for Corporate Commercial Bank subsidiary CB Victoria is through loan sales, BNB said Thursday. The central bank’s statement was in response to the position of employers’ organizations and syndicates in Bulgaria, which had earlier opposed the selling of loans from the portfolio of the troubled lender, warning it could lead to bankruptcy. In its statement, BNB said Corporate Commercial Bank met capital adequate requirements and yet it could not provide liquidity support to CB Victoria.
The latter was not entitled to receive state aid. The central bank also explained supervisors were authorized to use part of the bank’s assets if that was necessary for the lender to resume operations. BNB reminded that CB Victoria loan sales had not even begun as it depended on the offers submitted by the other banks, on talks with consultants from EPIC and the political decision for the fate of the two banks. Commercial banks have until October 15 to submit bids. The results will be announced October 20.
