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

Bulgarian capital mulls car ban to tackle air pollution

The Sofia city authorities have announced plans for wide-reaching measures to curb high levels of air pollution in the capital.  Bulgaria has the highest levels of PM10 concentrations in ... more

EC to sue Bulgaria, Romania for failing to adopt copyright legislation

The European Commission said that will refer Bulgaria and Romania, along with Luxembourg and Spain, to the Court of Justice of the EU as they have failed to notify ... more

Bulgaria, Macedonia plan feasibility study for link to reduce dependence on Russian gas

Bulgarian state-owned gas transmission system operator Bulgartransgaz and Macedonian energy company MER Skopje have signed an agreement on the start of a ... more

Dismiss