IMPORTANT NOTICE TO CLIENTS OF THE FORMER “CREDIT AGRICOLE BULGARIA” EAD.
On 12th June, 2014 Bulgaria’s Corporate Commercial Bank (KTB) acquired all assets of Credit Agricole Bulgaria. The deal was approved by the Bank Oversight department at the Bulgarian National Bank (BNB) and was worth BGN 92 M, which enabled KTB to purchase Credit Agricole’s Bulgarian unit.
Credit Agricole, one of Europe’s biggest banks, had its presence in the country only for two years after in 2012 it acquired 100% of Emporiki Bank Bulgaria’s assets and was registered as Credit Agricole Bulgaria.
One week later, on 20th June, 2014, BNB took control of KTB’s operations and the operations of its subsidiary- the former Credit Agricole Bulgaria EAD, for a period of three months and removed its management and supervisory board, but stressed it was not bankrupt.
“As you know, there has been a lot of talk about KTB and one of its shareholders, which triggered bank runs,” central bank governor Ivan Iskrov said at a news conference. “It is very important to be very careful when we talk about banks. Let’s not tear down our house alone unnecessarily.”
“Let me make this very clear. Corporate Commercial Bank is not a bankrupt bank. We are acting swiftly to avoid a bankruptcy,” said Iskrov.
BNB’s Governing Council held a press conference just an hour after the central bank announced it had placed KTB and its subsidiary under special supervision upon the commercial bank’s request. It decided to do so after KTB sent a letter asking for the step, due to “exhaustion of liquidity and termination of all payments and banking operations”.
According to the information in the website of Credit Agricole Bulgaria EAD, the necessary actions will be undertaken by 20th of July this year. During this period the Bank will not be excluded from the payment system and will be accepting payments in favour of its clients, including the repayments of loans.
KTB and its subsidiary will open on 21st of July at 9.00 am.
More information can be found at: http://www.credit-agricole.bg/News/id/153/language/en/