Cabinet Sets 25% Cap on State-Owned Companies' Net Exposure to Single Bank
Thursday, 01 January 1970
Bulgaria's caretaker government approved new regulations limiting the net exposure of wholly or majority state-owned companies to a single lender to 25% of the total amount of the company's cash assets in a bid to end the current concentration of funds in one bank.
Some 54% of the money of Bulgaria's state-owned firms are deposited with a single bank, caretaker prime minister Marin Raykov said last month, citing end of March data. He did not name the lender.
According to media reports, the bank in question is Corporate Commercial Bank owned by businessman Tsvetan Vasilev.
The huge financial resource that the state keeps in the bank has made it possible for the bank to finance a large group of media, as well as to acquire significant economic assets, experts have noted.