Corporate Commercial Bank, the fourth largest bank in Bulgaria, collapsed with a bang in 2014 as a result of mismanagement by its majority owner Tsvetan Vasilev. The bank used to hand out unsecured loans mainly to companies controlled by the same guy Vasilev, who twice won the Banker of the Year Award. His bank was in such a condition that the state was forced to borrow over 2 billion euro in order to cover deposits of individuals and companies, guaranteed by law. Meanwhile, the filthy- rich owner of the bank fled to Serbia and does not dare set foot in Bulgaria, despite his constant claims that he was not guilty of anything.

Trustees of the bankrupt bank continue to struggle to collect part of the debts, in order for some money to be returned to the state. They have not been very successful so far. At the backdrop of this helplessness the quite controversial in terms of its effectiveness Commission for Illegal Assets Forfeiture decided to take matters into their own hands. The commission filed a claim in court for the confiscation of Tsvetan Vassilev’s property worth more than 1 billion euro. These assets make Vasilev the richest man in Bulgaria. Property that the commission wants to confiscate includes the administrative building of CCB downtown Sofia, residential buildings, apartments, studios, garages, warehouses and others. Vasilev also owns real estates in Sozopol, Varna and Tsarevo on the Black Sea coast. The Commission was also able to find a link between Vassilev and the ownership of a luxury house in Switzerland that costs over 24 million euros. Authorities want to recoup 6 million euro from Vasilev’s accounts and confiscate three Mercedes vehicles totalling over 500 thousand euros. The lawsuit includes shares for 70 million euro, 300 million euro in stocks, paintings, valuable coins, etc. Distraint on several bank accounts of Vasilev in Switzerland was also imposed.

But experts are not optimistic about the outcome of the claim in court. No official charges have been filed against Tsvetan Vasilev so far. Secondly, it would be difficult to prove that the property in question was acquired illegally. Tsvetan Vasilev will be able to present all necessary documents on the origin of the money, as it was he himself who gave the loans to his own companies. Thirdly, the commission has not achieved any significant results so far, despite it being active for quite some time. Data show that the court has so far approved its claims totalling just about 8 million euro, which is well below the expenses for the existence and functioning of the commission. Finally, recouping 1 billion euros is not a realistic goal, as even the head of the commission, Plamen Georgiev, admits that some 700 million could actually be recouped. This is not a small sum but one should keep in mind the enormous influence that the banker in exile continues to have in this country and the unhealthy relations between Bulgarian justice and those with power. We would keep following the development of this saga about the voracious appetite of the Bulgarian nouveaux riches and the means they use to obtain money, no matter the cost. Moreover, there have been no retributions for their activities, so far.

English: Alexander Markov