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Employers and Trade Unions Want Supervisory Committee for CTB

23 July 2014

Today Trade Unions and employers' organizations called for a Steering Committee to deal with problems relevant to the Corporate Commercial Bank (CCB).The idea of such steering committee is developed in a letter sent to the President, Prime Minister, Governor of the Bulgarian National Bank, Head of the Financial Supervision Committee and the parliamentary political party leaderships.


Mr. Rossen Plevneliev President of the Republic of Bulgaria

Mr. Plamen Oresharski Prime Minister of the Republic of Bulgaria

Mr. Ivan Iskrov Governor of the Bulgarian National Bank

Mr. Stoyan Mavrodiev Head of the Financial Supervision Committee Parliamentary Political Party Leaderships

Re: Proposal for expert support aimed at solving the problems in Corporate Commercial Bank and overcoming the aftereffects for the banking sector

Dear Sirs,

A month ago the competent authorities promised that on July 21, 2014 the Corporate Commercial Bank Banking Group would resume its operations and its customers, many of which are members of our organizations, would have their money at their disposition. Furthermore, this was guaranteed by the Bulgarian National Bank and was supported by the Government, the Financial Supervision Committee as well as by the political leaders convened by the President.

Today we know that they all lied to us - both CTB Banking Group banks, put under special supervision, did not open.

Therefore we feel forced to ascertain the apparent incompetence of the competent authorities. Therefore, regardless of conservators appointed to exercise special supervision of the Banking Group, we insist on the Bulgarian National Bank to establish immediately a Steering Committee composed of professionals, really competent and experienced in bank institution rehabilitation.

This Steering Committee should include independent masterful bankers, financiers and lawyers as well as representatives of all people interested in the Bank Group recovery - different class depositors, borrowers, bondholders, existing shareholders and potential investors. The task of the Steering Committee must be to draw up and present to stakeholders an honest and objective information memorandum and to suggest financially justified and comprehensive solution for this Banking Group rehabilitation and restructuring, taking into account and balancing all stakeholders' legitimate interests (economic-structure companies, hospitals, schools, government agencies, municipalities, pensioners, etc.). Otherwise, the inability to use the funds will lead to bankruptcies, unpaid wages and loss of thousands of jobs. Only companies from the military industrial complex will lose more than 25.000 jobs.

The purpose of the Steering Committee must be to restore the bank operations as soon as possible and to provide maximum possible protection of depositors' money, creditors' takings and shareholders' rights based on contractual and voluntary agreement between the stakeholders involved. This is the usual and well-known world practice. The establishment of such Steering Committee shall not discharge from liability the competent persons and institutions.

We insist on starting immediately negotiations for accession of Bulgaria to the European Banking Union.

Yet we insist on a market solution for CTB Banking Group financial problems, which should not be at the expense of the taxpayers and the Bulgarian state budget. At the same time, we warn that we will not accept the Banking Group to be torn and plundered with impunity and our members and other customers' deposits to be appropriated, lost or wasted.

Bulgarian authorities and politicians proved incapable to cope with the financial problem we are facing. It is time to enable the professionals, the victims and interested investors to solve the problem as painful as it may be.

We insist also on immediate meeting with the Bulgarian National Bank Governing Council with respect to solving the above-mentioned problem.

Sofia, July 23, 2014.

For the Confederation of Independent Trade Unions in Bulgaria:

Mr. Plamen Dimitrov, President

For the Podkrepa Confederation of Labor:

Mr. Konstantin Trenchev, President

For the Association of Industrial Capital in Bulgaria (BICA):

Mr. Vassil Velev, Chairman For the Bulgarian Business Association:

Mr. Sasho Donchev, Chairman For the Bulgarian Chamber of Commerce and Industry:

Mr. Tsvetan Simeonov, Chairman For the Confederation of Employers and Industrialists in Bulgaria (KRIB):

Mr. Ognian Donev, Chairman