Reuniting Europe

Credit dossiers for a total of 3.5 billion leva (1.78 billion euro) of Bulgaria’s Corporate Commercial Bank (CCB) have disappeared and a sum equivalent to 206 million leva (105 million euro) has been withdrawn in cash upon order by its president of the supervisory board and the majority shareholder Tzvetan Vassilev, the Bulgarian National Bank (BNB) announced on 11 July. Tzetan Vassilev is left on the photo.

BNB Governor Ivan Iskrov also said the license of CCB will be withdrawn, the bank will be declared bankrupt and all deposits and accounts of individuals and companies, with the exception of the accounts of Vassilev, will be transferred to CCB’s subsidiary bank “Crédit Agricole Bulgaria”, which will be nationalized.
Vassilev spoke from Vienna, denied any wrongdoing and basically said the developments were a conspiracy.
So much for the news. Now some comments.
Several media in Bulgaria titled “The robbery of the century”. It is assumed that CCB, one of the few Bulgarian-owned banks in the country, is the “bank of the power” – this is where most of the state assets used to be deposited.
In return for the favour, CCB contolled a media empire which paid lip service to the government – previously of Boyko Borissov, presently of the coalition between the mainly ethnic Turkish Movement for Rights and Freedoms (DPS) and the Socialists. The media empire also badly attacked political foes and critics, including in the media.
A key figure in the story is Delyan Peevski, a shady power broker and MEP from DPS. Deevski is right on the photo. As it is common knowledge, the biggest concentration of Bulgarian media ownership and distribution concerns primarily the New Bulgarian Media Group Holding, of which Peevski’s mother Irena Krasteva is the owner, and of which credible press investigative reports suggested long ago that Vassilev is the creditor. I wrote about it myself some time ago.
In fact, the European Commission’s latest monitoring report on Bulgaria’s deficient law-enforcement system largely focused on Peevski, without naming him.
CCB has also reportedly financed the expensive European election campaign of the party “Bulgaria without censorship” of former journalist Nikolay Barekov, who is now an MEP. Vassilev has made no secret he wanted to play a role in politics. Barekov denies having been financed by CCB.
Then, the relations between Vassilev and Peevski deteriorated greatly, for undisclosed reasons. The Bulgarian prosecution took seriously Peevski’s signal that Vassilev had hired three people to kill him and investigated Vassilev’s offices, which contributed to a bank run on CCB that accelerated the early elections.
According to media reports, DPS has largely taken control over the siphoning of Bulgaria’s state resource, in terms of public procurement, governmental decision-making and law-making. Also according to publications in the Bulgarian press, the Prosecutor General Sotir Tsatsarov often appears to act (or not to act) according to Peevski’s will.
Now the main topic in Bulgaria is “who will pay” over the salvaging of the bankrupt CCB. Some views support the conspiracy theory – unnamed big creditors created the bank run, so they will not have to pay.
In Bulgaria, huge wealth is visible (against the background of massive poverty), although few economic activities exist. It is assumed that much of the wealth has been created during a major previous bank crisis, in 1996.
Maybe we see a remake of the story. How was it possible that CCB and Peevski created such a powerful center of oligarchic power? Despite the fact that several media outlets in Bulgaria have warned against both against Vassilev and Peevski’s alleged foul play? How is it possible that the Bulgarian Central Bank did not notice for years the wrongdoings of CCB, before Iskov cried wolf a few days ago? Why major political forces were so largely silent, what was their interest to keep their eyes wide shut? Who are those people and companies who safely withdrew their millions just before the bank run became obvious?
Vassilev’s bank offered extremely generous interest rates for savers, and this is why most of the Bulgarian elite had put their money in his bank.
Many Bulgarian commentators today speak as if they were paid communicators by Vassilev. And nobody in the Bulgaria major TV stations asks those commentators before inviting them to comment: do you have put your money in CCB?
I don’t have any and will try to remain objective when returning to the matter.

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