August 15 (SeeNews) - Bulgaria's central bank said on Friday it has loosened the ban imposed on payment operations conducted by the collapsed Corporate Commercial Bank [BUL:6C9] and its subsidiary Victoria Commercial Bank.
The decision was taken as it would be in the interest of the banks placed under special supervision and their debtors to allow those banks to conduct certain banking operations for the purposes of credit repayment, BNB said in a statement.
In June, the Bulgarian National Bank (BNB) placed Corporate Commercial Bank (Corpbank), the country's fourth largest lender, under three-month special supervision over risk of insolvency. It also appointed conservators at the bank.
In July, the BNB said Corpbank would face insolvency proceedings while all of its healthy assets will be transferred to its wholly-owned Credit Agricole Bulgaria unit which will be nationalized and rebranded.
The central bank has allowed Corpbank and Victoria Commercial Bank to conduct payment operations for the purposes of the repayment of credits taken out from a bank placed under special supervision using accounts with the same bank of the borrower, his co-debtors or loan co-signers in cases when the indebtedness has arisen before June 1, 2014.