Bulgaria to strip major bank of license; submits audit results to prosecutor

Associated Press

Bulgaria's central bank says it will strip the country's fourth-largest lender, Corpbank, of its license following an audit — the results of which will be submitted to prosecutors.

National Bank Gov. Ivan Iskrov said Friday the bank will face insolvency and its good assets and liabilities will be transferred to Corpbank's recently-acquired subsidiary, Credit Agricole Bulgaria, which will be nationalized.

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Last month, Corpbank — officially called Corporate Commercial Bank — faced a liquidity drain after it was hit by a run and subsequently was taken under state control.

Iskrov said key documents for loans worth 1.8 billion euros were most likely destroyed, adding that most of the loans were linked to parties related to the bank's main shareholder, Tsvetan Vasilev, who is out of the country.