The governor of the Bulgarian National Bank Ivan Iskrov finally handed in his resignation and is to leave one of the most-responsible state positions on July 10. 2015. We say finally, because the authorities have been repeatedly urging him to resign after the collapse of the Corporate Commercial Bank in June 2014, which was the fourth biggest bank in this country.

The authorities are still investigating the case and trying to find the reasons that caused this large-scale bankruptcy. However, all political parties, economic experts and analysts unanimously said that the Bulgarian Central Bank is to blame, because it failed to reveal the problems of this commercial bank on time and take measures to prevent this financial catastrophe. The Bulgarian Prosecutor’s Office started to investigate the work of the Deputy-Governor of the Bulgarian National Bank in Charge of Banks’ Supervision Tsvetan Gounev, who was later dismissed from work. However, the Governor of the Central Bank Ivan Iskrov remained on his position, although he was subject to strong criticism and accusations. Moreover, the clients of the bankrupt Corporate Commercial Bank who lost some of their money initiated massive protests against the Central Bank Governor. According to the national legislation, the Governor of the Bulgarian National Bank is completely independent and can not be replaced before the end of his mandate, unless he personally decides to resign. The mandate of the current Governor of the Central Bank ends in October this year. However, the Bulgarian society urged him to leave his position earlier. The political parties, the Bulgarian cabinet and the National Assembly also exerted pressure over Ivan Iskrov to resign as soon as possible. However, despite the ongoing pressure and massive protests, the Central  Bank Governor continued to head the most-important financial institution in Bulgaria and refused to hand in his resignation until June 23.

Meanwhile, the political parties represented at the National Assembly nominated four potential candidates to head the Bulgarian National Bank. All four applicants have excellent CVs and are suitable to become the next Governor of the Central Bank. Therefore, the one who receives biggest political support would replace Ivan Iskrov. Experts contend that GERB nominee Dimitar Radev is one step forward. He is not that popular in Bulgaria, because he spent most of his career at the headquarters of the International Monetary Fund in Washington DC. Next week the National Assembly is to organize a public hearing of the candidates.

According to most financial analysts, the Bulgarian banking system is in sound condition. Apparently this was rather due to the efforts of the commercial banks, which drew their conclusions after the collapse of the Corporate Commercial Bank, than some substantial and decisive measures taken by the Banking Supervision Department of the Central Bank. Hopefully, the warnings of some financial experts that the panic among the Greek banks stemming from the potential threat of financial bankruptcy could result in massive withdrawal of money from the Bulgarian banks with Greek ownership, will not come true. Such scenario would put these banks under the pressure of their depositors, as it happened with the Corporate Commercial Bank in 2014.

English version: Kostadin Atanasov