Main shareholder puts market value of assets held by Bulgaria's Corpbank at EUR 2.5bn

By bne IntelliNews October 9, 2014

Tsvetan Vassilev, the main owner of Bulgaria's troubled Corporate Commercial Bank (Corpbank) has estimated the market value of the bank's assets at EUR 2.5bn. 

The latest official information, made public two months ago by the central bank, put the book value of Corpbank's assets at BGN 6.89bn (EUR 3.5bn) and its equity at BGN 521mn as of end-June. Since then, however, the receivers working at Corpbank have provisioned a considerable amount of the lender's loans, thus reducing its assets and capital. 

In the first eight months of 2014, the value of bad loans on Corpbank's balance sheet surged to BGN 493.2mn, widening the bank's Jan-Aug operating loss to BGN 412mn from BGN 258.7mn accumulated in Jan-July. Based on this data, it would take only one more month of a similarly bad financial results to completely wipe off the lender's equity, exhausting shareholders' ability to absorb any more losses.

Corpbank suffered a run on deposits in June and is now under central bank receivership. Independent auditors are currently going through the bank's balance sheet to assess the quality of its assets and should announce the results of their audit by October 20.

Related Articles

EU to fund feasibility study on Slovakia’s proposed Eastring gas link to Balkans

The EU has agreed to help fund a feasibility study on the Eastring pipeline project, which would link Slovakia to the Balkan markets, Slovak transmission system operator Eustream announced on May 26. ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Bulgarian prosecutors charge former foreign minister in procurement case

Bulgaria's specialised anti-corruption unit has charged former Foreign Minister Daniel Mitov with violating the laws on public finance and public procurement, ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss