Seizure of Bulgaria's Corpbank

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In June 2014, a run on Corporate Commercial Bank (Corpbank), Bulgaria’s fourth-largest bank, led to its closure by the Bulgarian National Bank. The collapse sent shockwaves through the economy, with depositors estimating losses of up to 10 billion leva (about 5 billion euros). The crisis also made international investors wary of Bulgaria.

Corpbank’s owner, Tzvetan Vassilev, lives in exile in Serbia after extradition was denied there. Bulgaria has charged him with embezzlement, a claim he says is politically motivated. Before the government takeover, Vassilev was the bank’s major shareholder and controlled other companies that employed thousands of people.

Many observers believe the bank run was engineered for political reasons. Delyan Peevski, a powerful media figure and former ally of Vassilev, financed much of his media empire with Corpbank funds. After a falling out, Peevski and some prosecutors were accused of helping trigger the crisis through media campaigns and pressure.

Following the crisis, Corpbank asked for special supervision by the central bank, but it did not receive liquidity support. In November 2014, the central bank revoked the bank’s license. Depositors and shareholders were not allowed to appeal the decision at the time, and the European Court later found Bulgaria breached EU rules on deposit guarantees due to payout delays.

The aftermath included international disputes, such as the Omani Sovereign Wealth Fund, a major shareholder, suing Bulgaria after its rescue plan was rejected. In parallel, Vassilev faced embezzlement accusations, which he denies as politically motivated and says witnesses and prosecutors were unreliable.