(Reuters) - Bulgaria is to allow its fourth-biggest lender to collapse but could spend up to 2 billion levs ($1.39 billion) making sure customers do not lose out, as the Balkan country battles to clean up its worst financial scandal since the 1990s.
The central bank
said it was removing Corporate Commercial Bank's (Corpbank) banking
licence and would hive off its healthy activities into a separate bank,
marking the first banking collapse since a 1996-1997 domestic financial
crisis.
The Bulgarian
National Bank (BNB) is also alerting prosecutors to the possibility that
Corpbank's main shareholder stole almost 206 million levs just before
the central bank took over its operations on June 20 after depositors
withdrew about 1 billion levs.
http://finance.yahoo.com/news/bulgaria-strip-corpbanks-licen...