Bulgarian National Bank (BNB) has authorized the administrators of Bank Victoria, a subsidiary of the Corporate Commercial Bank (CCB), to start the sale of the bank’s assets to raise funds to pay out all depositor claims due to start December 12.
The proceeds from the sales, projected at BGN 180m ($115.50m) would offer sufficient liquidity to cover all deposits at Bank Victoria.
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BNB took control of Bank Victoria in June after the parent bank CCB was placed under conservatorship following a run on deposits.
Bank Victoria is expected to restart full operations after December 22, when CCB will have access to its dues and hires new management.
BNB has revoked CCB’s licence after malpractice at the bank prompted a write-off of two-thirds of its assets.
As of now, seven banks have placed binding offers for different loan portfolios of Bank Victoria.
Societe Generale’s Bulgarian arm will acquire Bank Victoria’s mortgage loans, Tokuda Bank will get small business and consumer loans with mortgages, while Bank Victoria’s consumer loans and credit cards will be acquired by Bulgarian Central Cooperative Bank.
