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Thread: Bulgarian Banking Happenings

  1. #1
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    Default Bulgarian Banking Happenings

    There is something afoot in Bulgaria, but nobody seems to be sure why, or who/what is causing it. For the second day running there has been a run on 2 major banks, with people witdrawing millions of "lev". The Corporate Commercial Bank (Corpbank) was placed under the control of the central bank last week, and on Friday a second bank, First Investment Bank, became the target of massive withdrawals.
    the Bulgarian authorities have agreed on a general election to be held on Oct 5th 2014. Meanwhile, 4 people have been arrested, accused of "destabilizing the country". the previous government, ousted over the high cost of energy, is expected to become the largest party after oct 5th, and its leader Boiko Borisov has already vowed to call in the IMF to help "calm the country"....

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    Default Re: Bulgarian Banking Happenings

    Oh so not good. This is probably cliched thinking on my part, but presumably there will be a lot of the elite up to their armpits in dodgy dealings? The Ukraine induced gas flow issues presumably aren't helping either...


    "The floggings will continue until morale improves"
    "The floggings will continue until morale improves "

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    Default Re: Bulgarian Banking Happenings

    Quote Originally Posted by morticia View Post
    Oh so not good. This is probably cliched thinking on my part, but presumably there will be a lot of the elite up to their armpits in dodgy dealings? The Ukraine induced gas flow issues presumably aren't helping either...
    If I remember well, one of your banking institutions, AIB, knows all about those "dodgy dealings". Many, many Greek companies (and Turkish) are registered in Bulgaria because of even lighter touch regulation than in the homeland. I can't help but wonder how many international companies are availing of the "Bulgarian Economic Wonder" as Boiko once described the place, before he got kicked out by public revolt...

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    Default Re: Bulgarian Banking Happenings

    Somebody is in a hurry.... Talks with the IMF suddenly announced for July, by the serving government. They're not even waiting till after the elections. Why does this feel so familiar...

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    Default Re: Bulgarian Banking Happenings

    The four arrested; what prior positions had they held? Might give a clue as to the source of the trouble? AIB, I think, were forced to fire sale their Bulgarian interests at a knockdown price, corruption alleged re someone putting a gun to their heads, but the suggestion was, I think, that they were naive and stupid and got scammed rather than that they themselves had been up to anything dodgy? Open to correction, though, don't remember it very clearly..


    "The floggings will continue until morale improves"
    "The floggings will continue until morale improves "

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    Default Re: Bulgarian Banking Happenings

    Quote Originally Posted by morticia View Post
    The four arrested; what prior positions had they held? Might give a clue as to the source of the trouble? AIB, I think, were forced to fire sale their Bulgarian interests at a knockdown price, corruption alleged re someone putting a gun to their heads, but the suggestion was, I think, that they were naive and stupid and got scammed rather than that they themselves had been up to anything dodgy? Open to correction, though, don't remember it very clearly..
    Can't remember the AIB details either, something to do with girlfriends getting blown up in their cars springs to mind...

    on the arrests
    A central bank spokeswoman was unable to tell who might be behind the attack, or what the motivations might be. She said the interior ministry had launched an investigation to try to shed light on these issues. The ministry refused comment.
    rumours are that they are journalists who had been reporting on ...."dodgy deals" BTW, a few years ago, the Bulgarian government also blanket guaranteed deposits....

    According to Ivan Iskrov, Governor of the BNB,
    an attempt to destabilize the state through an organized attack against Bulgarian banks, without any reason.
    The accusations come in the wake of the insolvency of Corpbank, the country's fourth-largest bank, last Friday (20.6.2014). Media reports of suspect dealings led to a run on deposits that caused the central bank to take control.

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    Default Re: Bulgarian Banking Happenings

    Quote Originally Posted by Ephilant;391119[B
    ]If I remember well, one of your banking institutions, AIB, knows all about those "dodgy dealings"[/B]. Many, many Greek companies (and Turkish) are registered in Bulgaria because of even lighter touch regulation than in the homeland. I can't help but wonder how many international companies are availing of the "Bulgarian Economic Wonder" as Boiko once described the place, before he got kicked out by public revolt...
    Yep. AIB got absolutely shafted in Bulgaria. We had a thread here:

    http://www.politicalworld.org/showth...ll-for-%80216m

    AIB was sold a Bulgarian pup and stuck us with the bill for €216m


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    Default Re: Bulgarian Banking Happenings

    The Bulgarian government asked for, and got, an emergency credit line of some 2 billion Euro from the European Commission to "solve" the problem it has with its banks. According to the Commission
    The state aid implied by the liquidity measure is proportionate and commensurate with the need to ensure sufficient liquidity in the banking sector in the particular circumstances
    while at the same time the commission insists that the Bulgarian banking system
    is well capitalized and had "high levels of liquidity compared to its peers in other [EU] Member States.
    the question begs. If they do indeed have "high levels of liquidity", then why the 2 billion to provide liquidity. Either, we are not being told the truth about the Bulgarian banking system, or the banking system in the rest of the EU is in a far worse state than we are made believe.... Or both....

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    Default Re: Bulgarian Banking Happenings

    And just to refresh the mind. The 216 million AIB stake in the Bulgarian-American Credit Bank was sold for 100.000€ to one Tsvetelina Borislavova, who happens to be the girlfriend of none other than Boyko Borisov, the "leader" who got ousted by public demand 3.5 years ago and now stands to take over again, with the blessing of the EU. It does however look like the AIB story was very much a case of boys trying to deal with men in terms of pulling off dodgy finance deals...

    But, as you rightfully asked Morticia, are
    the elite up to their armpits in dodgy dealings?
    the answer is a resounding "yes"

    You can start putting the picture together from here

    Paragraph 13 :
    (S/NF) Accusations in years past have linked Borisov to oil-siphoning scandals, illegal deals involving LUKoil and major traffic in methamphetamines. Information from SIMO tends to substantiate these allegations. Borisov is alleged to have used his former position as head of Bulgarian law enforcement to arrange cover for criminal deals, and his common-law wife, Tsvetelina Borislavova, manages a large Bulgarian bank that has been accused of laundering money for organized criminal groups, as well as for Borisov's own illegal transactions. Borisov is said to have close social
    and business ties to influential Mafia figures, including Mladen Mihalev (AKA "Madzho"), and is a former business partner of OC figure Roumen Nikolov (AKA "the Pasha").
    Who is this SIMO? Well, according to the German paper Tagesseitung, none other than the CIA. According to the Tageseitung,
    ...diplomats are banned from using the name of the agency in diplomatic documents. A former Head of the CIA, confirmed for TAZ that SIMO and the CIA are the same thing. SIMO is an administrative term for the CIA, actually used only for internal purposes, and as such, it should not have been used in the cables.
    A search through the wikileaks cables finds 175 mentions of SIMO, all of which relate to REAL dirt. The only other mention of SIMO confirming drug related rumours against a high ranking foreign politician being involved in the drug trade names the former Senate President of Haiti, Mr. Joseph Lambert.

    Back to Bulgarian Banks being bailed out by the EU....

    Regarding information from Ambassador Beyrle’s cable about money laundering through the bank of Mr. Boyko Borisov’s girlfriend, Ms. Tsvetelina Borislavova, it is noteworthy the mention this secret cable
    Economic and Investment Bank (former Bulgarian-Russian Investment Bank). Offshore companies once owned this bank. Tsvetelina Borislavova, common-law wife of Sofia mayor Boyko Borissov, and Svetoslav Bozhilov own it now, together with Icelandic investor Thor Bjorgolfsson (another interesting figure worth looking at. Landsbanki features prominently in his "business" history) through his company Novator Finance Bulgaria. The concern with this bank is that it is practicing connected lending with lower quality companies that wouldn't otherwise qualify. There are also concerns about the origin of some of the assets Borissov allegedly passes through the bank.
    The source of that little bit of info is none other than Dr. Vasil Kirov. He was, at that time, Director of Financial Investigation Agency in Bulgaria and Chairman of the Council of Europe Committee of Experts on the Evaluation of the Measures against Money Laundering (Moneyval). He joined OLAF (European Commission) in 2010 as a Head of Investigations.

    Meanwhile, everything is happy clappy in EU banking land and they are looking forward to good cooperation with Boyko Borissov and his dodgy Bulgarian banks. Boyko Borissov is tipped to become the PM of Bulgaria again after the elections in October. Never mind that the Bulgarian State Agency for National Security (DANS) and the National Revenue Service (NRA) are yet again probing former PM, Boyko Borisov, and his ex-girlfriend Tsvetelina Borislavova for financial crimes. (Sofia News Agency, Nov28 2013).

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    Default Re: Bulgarian Banking Happenings

    And would you believe it, the happenings in Bulgaria have now been linked to Gas-supply to the EU.... Once upon a time, there was an EU - USA backed project called "Nabucco", which was supposed to pipe natural gas from Iraq through turkey into Bulgaria and then onwards to Austria. Nabucco died a slow death, despite massive funds being made available by Europe, as the Iraqis insisted that Iran had to be involved in the project. The Iraqi PS Mottaki stated that
    speaking about the Nabucco pipeline without Iran's participation would amount to nothing but a pipeline void of gas
    The US was not happy with this and refused to support the project on that basis.
    The Russians came up with an alternative called "South Stream", which would deliver gass from Russia through the South Stream pipeline running over the bottom of the Black Sea (in Turkish territorial waters) to Bulgaria and then onwards to Austria, but would also divert to Greece, Italy and Serbia. The companies owning/running this pipeline would be jointly owned on a 50/50 basis between Russia and the various countries involved in this. Contracts were signed, the last one 6 days ago with Austria.
    Recently, there have been many, many allegations made of corruption involving the current Bulgarian government (the socials government) regarding this project, and Boyko is making political hay from this. The noise got so loud that the project has been stopped when the EU started infrigement procedures against the Bulgarian government for non-compliance with EU rules. This action was started after complaints from the US, which wants to revive Nabucco at any cost, including the involvement of Iran.
    The Russians claim that this is an EU/USA plot to ensure that the rather unstable (in terms of being trustworthy partners) Southern periphery countries (Bulgaria, Greece, Serbia and Italy) would not be able to avail of an alternative, US/EU independent gas network, which might give them other ideas about EU control. The EU for it's part claims that the whole project contravenes EU rules which ban gas producers from owning transit facilities.

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