Bulgarian central bank’s banking supervision chief director resigns

Written by on September 30, 2015 in Bulgaria - Comments Off on Bulgarian central bank’s banking supervision chief director resigns

The chief director of banking supervision at central Bulgarian National Bank (BNB) has resigned with effect from October 1 2015, BNB confirmed in a brief media statement on September 30.

Neli Kordovska had asked to resign and this had been accepted, BNB said. A procedure to replace her as deputy head of the board of the Bank Deposit Guarantee Fund would commence, the statement said.

Kordovska was the subject of media reports around the collapse of Corporate Commercial Bank (CCB) when it was alleged that a day before CCB was put under special supervision by BNB in June 2014, Kordovska withdrew money she held in the bank.

It was later confirmed by Parliament’s budget committee chief Menda Stoyanova that Kordovska withdrew two deposits in CCB (worth more than the amount guaranteed by law, 196 000 leva) from the bank just hours before the lender asked to be put under the central bank’s administration.

Stoyanova also alleged that Kordovska had, on behalf of the Deposit Guarantee Fund, allowed changing the terms of the contracts of 1000 depositors so that they became deposit-guaranteed.

Soon before CCB was put under special supervision, the then-head of banking supervision, then-deputy governor Tsvetan Gounev, took leave of absence from BNB. For several months, Kordovska acted in his stead.

In July 2015, Parliament appointed a new leadership team at BNB, naming Dimitar Radev as the central bank governor, with the new leadership including Dimitar Kostov as deputy governor in charge of bank supervision.

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