A three-day run in June has left Corporate Commercial Bank closed as officials wrangle over how the bank should be saved.
The fate of one of the biggest banks in the European Union’s poorest country, Bulgaria, remains hostage to a political crisis, which caused the prime minister’s government to resign on Wednesday.
The resignation of Prime Minister Plamen Oresharski and his cabinet, which had been expected for weeks, comes as Bulgaria’s worst banking crisis since the 1990s threatens to take an economic toll on local businesses and foreign investors. And with a caretaker government presiding until elections in the fall, there may be no quick resolution of a rescue plan for the bank.
The bank, Corporate Commercial Bank, also known as K.T.B., has been closed since June 20, after a three-day run in which some $700 million — about a fifth of the bank’s deposits — was withdrawn. It had been set to reopen on Monday, a month after the central bank took control of its operations. But the bank remains closed as officials continue to wrangle over whether the state should bail it out or find private investors to save it.
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