13-Aug-14
When Alex Nikolaev signed the expensive treatment at a private clinic; his plan is to use the money from his savings account to pay for it.
Unfortunately, the 55-year-old physical therapist, his money was raised and the company's commercial banks, which follows close on the run on its deposits in June by the National Bank of Bulgaria loans.
"I feel despair. Banks should re-open in July, and now they are talking about October," he said. "This is my biggest single expenditure for several years, but it's not my fault, I cannot cover it."
Savers such as Mr. Nikolayev frustration is greater share of bank customers, which disintegrated Tsvetan Vassilev, the bank's largest shareholder, and Delyan Peevski, a controversial politician, one of its biggest borrowers the public quarrel is triggered. Both have denied wrongdoing.
Corpbank outstanding $ 150 million senior unsecured bonds due on Friday, including some American and British hedge fund holders, international investors despite Bulgaria's central bank and Ministry of Finance assured that they will get their money.
"There is a grace period of one week, but we are not optimistic about [their money]," one hedge fund manager who requested anonymity. "Whatever the outcome, Bulgaria and the credibility of the international market have taken a hit."
The Corpbank Saga highlights the close relationship between Bulgaria powerful business elite and among politicians, as the country is facing an early election on October 5.
The vote was called Rosen Plevneliev, who is accused of participating in public procurement contracts too dependent on reform-minded president of the Bulgarian national oligarchy of state funds.
"Oligarchs funding from three sources: Government procurement contracts state-owned enterprises in the bank [they control] deposits and privatization transactions," Mr. Plevneliev said. "They all rely on this money."
Mr. Vassilev, who in 2012 was named one of Bulgaria's most influential people, Forbes magazine by former stockbroker, expanding Corpbank small deposits by offering high interest rates, but also to attract deposits from state-owned enterprises , especially in the energy sector.
Mr. Peevski, at the same time, put forward his own political career thanks to the Media Empire by his mother nominal control, help from Corpbank financing.
But the dispute between the two men appeared in the capital of Bulgaria in June stretch giant South Stream project, the entire Black Sea € 400 ? Russian pipeline to send gas through conflict-torn Austria, to replace the existing onshore pipelines in Ukraine.
According to the knowledge of people Corpbank affairs Bank provided € 90 ? assurance and Mr. Peevski began to 550 km of the project work station in Bulgaria two construction companies.
However, the bank - Mr. Vassilev owns 51% of the shares - when to withdraw from the deal, the former Bulgarian Socialist Party government to freeze its participation in South Stream, the pressure from Brussels, the EU research project over bidding rules may infringement.
Mr. Peevski revenge Corpbank and Mr. Vassilev pull money from banks, prompting run by depositors, the same people say.
This increases both the oligarchs over Mr. Vassilev decided to return a new pro-business party, there is no censorship in Bulgaria, which won two seats, the rift between the European Parliament elections in May. Mr. Peevski election rights and freedoms with rival movement, a Turkish national side, but his criticism of political and business records, and resigned his seat.
Ognian Shentov, democracy in the center, research director Sofia think tank, said: "This is out of control street brawl between two oligarchs now, the central bank also hinted at potentially devastating consequences."
Russia's leading Corpbank shareholder VTB Capital, has been declining pump new money, while Oman's sovereign wealth fund, which holds a large stake, is waiting for the bank by Deloitte, Ernst & Young and chants, Bulgaria auditors audit results before decision. Before impossible auditor’s report their findings in October.
Ivan Iskrov, Bulgaria's central bank governor, put forward its own proposal, which would avoid the rescue package Corpbank bail, the largest shareholder after the deposit was rejected by the government to resign. Person in charge of the supervision of the central bank is under investigation by prosecutors.
A senior official with knowledge of the Bulgarian bank balance sheets, said: "The preliminary audit showed a high proportion of corporate loans Poor files so they cannot assess the extent we still have to find the related party loans, which may. is quite large. "
Nikolay Staykov, to protest the network, one of the founding members of civil society groups, said Corpbank some private Bulgarian banks were named as the "bad apple" adopted because of poor governance, one Western official in Sofia.
"The first [Bulgarian Bank] difference," Mr. Staykov said. "Corpbank business model - taking deposits and state stakeholders, including politician’s capital - is actually protected by the central bank."
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