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Sofia Mayor Boyko Borisov
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The Bulgarian Post
2006-07-13 09:02:13
The Municipal Bank has granted risk credits worth BGN 25 M to companies close to companies close to the bank's minority shareholder Hristo Kovachki, according to municipal councillor Vladimir Karolev.
Karolev cited a report of the bank's management council, explaining that he received the report using his own sources. Karolev also added that Bank control has already declared that BGN 8 M of the credits will not be collected. In his word the demands of the bank to increase its capital to BGN 40 M to cover the risk credits.
The chairman of Sofia Municipal Council Vladimir Kisiov also said that he has the report, but said that it showed no misuses. Sofia deputy mayor Tsvetan Tsvetanov backed the same position. Meanwhile the council decided to launch a check into the privatisation of the bank.
In the end of June Sofia mayor Boyko Borissov and the management of the Municipal Bank had a short "battle" won by the mayor. Back then Borissov posed a deadline of five days for the bank to pay dividends otherwise he threatened to withdraw the budget of the capital from the Bank.
On June 15 Sofia municipal councillors revoked their decision for the privatisation of the Municipal Bank after they faced the strong opposition of the Sofia mayor. Borissov resisted the councillors' decision to allow the bank to increase its capital to BGN 15 M, thus decreasing the municipality share in the bank from 67% to 40%
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