Bulgaria Will Start Corporate Bank Bankruptcy Process
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Bulgaria will start the bankruptcy procedure for Corporate Commercial Bank AD, the eastern European country’s fourth-largest lender, after an audit found missing records for loans worth 3.5 billion lev ($2.4 billion).
The audit found “actions incompatible with the law and good banking practices” that led to a 1 billion-lev run on the bank in the three days before the central bank placed it under supervision on June 20, it said on its website. The Sofia-based central bank wants to transfer Corporate Bank assets and liabilities not linked to its majority shareholder to the former local unit of Credit Agricole SA, which the lender acquired a week before being placed under supervision. The central bank will also revoke its operating license.