Banks in Bulgaria tend to be small where international standards are concerned but they are among Europe’s most stable financial institutions. This is not just a claim on their part but also an assertion of the Bulgarian National Bank backed with facts and figures. In the meantime, this stability has been confirmed during the still smoldering world crisis which has not in the least undermined the financial health of Bulgarian banks. On the contrary: their financial indices have improved and their profits have gone up, as many have sought a safe refuge for their money in an environment of uncertainty and instability. It is not surprising then that there is hardly any critical discourse about banks ever heard in Bulgaria.

In this context it is quite shocking to see a raging row that has affected Corporate Commercial Bank, its majority owner, a range of its deals with clients and its alleged involvement in various political machinations. There were even speculations that the CCB owner had ordered the murder of one of Bulgaria’s most controversial politicians often presented in the media as very close to that same bank.

The truth should be established by the Prosecutor’s Office, the investigation and the police. Unfortunately, however, accusations, speculations, hints and rumors have long been known to create an unhealthy climate and to undermine the entire financial-crediting system. At least this is the view of the central bank, the Association of Banks in Bulgaria and the Bulgarian Industrial Association. The three reputable institutions have carried releases stating that the situation is under control; that there is nothing to worry about in the banking sector; that it is stable and in good health; and that the attempts to weaken it are extremely dangerous and harmful.

In the meantime though, it has become clear that the structure charged by the law to carry out monitoring of banks in Bulgaria and to control their operations, namely the Bank Supervision Department of the central bank, has suddenly been left with no chief. According to various sources, the head of the department Tsvetan Gunev  is facing charges of criminal breach of trust and has been denied access to classified information. These measures have been reportedly prompted by unregulated and unclear relations with that same Corporate Commercial Bank whose image has been severely tarnished of late. The Bulgarian National Bank and the Prosecutor’s Office have confirmed these reports and have specified that the senior official and BNB under-governor is on a leave.

So it has turned out that there is problem with the man who is in charge of law and order. This fact is very worrying indeed with fears further fueled by the political crisis underway in the country. So far, the BNB and the banks symbolized security and gave Bulgarians the feeling that there are institutions and sectors of the economy that function normally and steadily. Now even this mainstay has been shaken and this cannot possibly gladden responsible politicians, the businesses and the average Bulgarian citizens. 

English: Daniela Konstantinova