Following the stress of last year's banking crisis in Bulgaria, now time has come for inspections of banks recommended on Friday by the regular spring mission of the International Monetary Fund. Recommendations coincide with plans already declared by the Bulgarian National Bank (BNB) for banking supervision tightening.
2014 has gone down in history as the year when Bulgaria's fourth biggest lender, Corporate Commercial Bank, collapsed generating tensions across the entire banking sector and in public finance. After the situation came under control and fears of citizens were appeased, the collapse of the lender was paid for by the state at a very dear cost. In 2015 there are new trials for the banks in Bulgaria to come. This time the threat for them comes from BNB that has come under pressure from the International Monetary Fund.
In 2014 the BNB turned out unfit for the sweeping crisis and responded inadequately to it. For 2015 the International Monetary Fund has urged it to act more decisively by checking the state, accounts and the businesses of commercial banks. This at least shows in the BNB decision to use the services of an internationally reputable audit company assigned with the check of the quality of assets across the banking system, as strongly criticized BNB Governor Ivan Iskrov explained.
The logic behind letting an international consultant inspect banks is that foreign experts will be stricter and more objective in their analyses and evaluations. It is however doubtful whether one can count too much on international companies working in the Bulgarian context given that one of the three most prestigious consultancy companies in the world had signed the reports and balances of several years of the now shut down Corporate Commercial Bank and argued until the end that everything was in order inside the troubled lender. That company had done its job with such negligence that after the real circumstances of the bank became known, the competent Bulgarian authorities threatened the consultants with license revocation. However, everything finally boiled down to a hefty fine. Apparently stringent control of commercial banks should be coupled with greater requirements to the entities inspecting them, regardless of whether these are national or international.
English Daniela Konstantinova
A concession award procedure for Plovdiv Airport is planned, Deputy Premier and Minister of Transport and Communications Grozdan Karadjov said at a meeting with aviation industry representatives. Minister Karadjov emphasized that he supports the idea..
Bulgaria’s Minister of Finance Temenuzhka Petkova said that the turnover of large retail chains in Bulgaria decreased by 28.8% on the day of the boycott compared to the previous day, reported BTA. Temenuzhka Petkova took part in the meeting on..
The highest average salary in Bulgaria is in Sofia - 1732 euro, and the lowest in Smolyan - 826 euro. These are the data from the National Statistical Institute (NSI) for December 2024. Because of the salaries in the capital, the average salary in..
The Bulgarian National Bank (BNB) has posted, to its website, the answers to important questions connected with the adoption of the euro and the..
The euro area annual inflation rate was 2.5% in January 2025, up from 2.4% in December 2024. In Bulgaria, it accelerated more sharply in January to 3.8%..
89% of German investors in Bulgaria would choose Bulgaria again for their investments . This is indicated by a study by the German-Bulgarian Chamber of..
+359 2 9336 661