Tsvetan Vasilev
Tsvetan Vasilev | |
|---|---|
| Born | 1959 Bulgaria |
| Occupation | Businessman |
| Known for | Majority owner and chairman of Corporate Commercial Bank; involvement in Bulgarian banking sector and legal controversies |
Tsvetan Vasilev (also transliterated as Tzvetan Vassilev; ; born 1959) is a Bulgarian businessman who formerly held the position of majority owner and chairman of the supervisory board at Corporate Commercial Bank, which ranked as Bulgaria's fifth-largest bank by assets prior to its 2014 failure following a bank run. Vasilev asserts that the bank fell victim to a corporate raiding operation orchestrated by media tycoon and politician Delyan Peevski, allegedly with backing from Bulgaria's Prosecutor's Office and central bank, aiming to appropriate the bank’s most valuable holdings. He lodged a complaint under the US Global Magnitsky Act against Peevski and Bulgaria's Chief Prosecutor Sotir Tsatsarov. Vasilev successfully contested the revocation of the bank’s license at the European Court of Human Rights, which ruled that his property rights and right to a fair trial had been infringed. Depositors have also initiated legal action under the US Racketeer Influenced and Corrupt Organizations Act, accusing Peevski, the Bulgarian National Bank, and others of fraudulent activities intended to misappropriate assets after the bank’s closure. Currently, Vasilev resides in Serbia, where he has been granted political asylum.
Years of Bloom
Vasilev served as chairman and majority stakeholder of Corporate Commercial Bank AD, which was Bulgaria’s fifth-largest bank by asset size before its collapse triggered by a run on deposits in 2014. Additionally, he led the supervisory boards of Victoria FATA Insurance and Vivacom, one of Bulgaria’s top telecommunications firms. He was honored with a badge of distinction from the University of National and World Economy in Sofia and holds an honorary doctorate (Doctor Honoris Causa) from "St Ivan Rilski" University of Mining and Geology.
Education
Tsvetan Vasilev obtained a master’s degree in International Economic Relations from the University of National and World Economy. Following his studies, he spent seven years as an economics research fellow at the Center for Foreign Trade and International Markets.
Early career
Vasilev launched his career in finance in 1992 by establishing brokerage company Bromak EOOD along with investment intermediary Fina-S AD. From 1995 until 1999, he directed the Foreign Exchange Operations and Liquidity Department at Central Cooperative Bank and was appointed to its board in 1997. In 1999, he transitioned to CB Bulgaria Invest (currently Allianz Bulgaria Commercial Bank) as head of Markets and Liquidity.
Corporate Commercial Bank ("Corpbank")
Between 2000 and 2003, Vasilev held the roles of chairman of the executive board and executive director at Corporate Commercial Bank AD. In 2003, he acquired majority ownership of the bank and assumed chairmanship of its supervisory board.
Entrepreneurial and innovative investments
By 2014, Corpbank had grown to become Bulgaria’s fourth-largest banking institution. It maintained a varied asset portfolio and stood out as the only Bulgarian bank actively investing in start-ups and entrepreneurial ventures. This distinctive approach contributed significantly to its profit expansion and influence across the region. Prior to its downfall—triggered by regulatory interventions and asset misappropriation—Corpbank was widely regarded as one of the Balkans’ most innovative and entrepreneurially driven banks.
Starting in 2001, Corpbank broke new ground by financing exports for Bulgarian energy producers and ammunition manufacturers who had previously lacked sufficient banking support. Unlike other banks, it also engaged in direct investments into clients and emerging companies, most notably acquiring Bulgaria’s leading telecom operator Vivacom in 2012 together with affiliates from VTB Capital. Vivacom is a prominent telecommunications firm providing landline, mobile, internet, radio, and television services with approximately 3,500 employees. Vasilev recognized this opportunity early on and secured financing for the acquisition.
Industry analysts consider the Vivacom transaction among Bulgaria’s most intricate financial deals. The restructuring process received clearance from both the European Commission and Vivacom’s international creditors. Prior to acquisition by Vasilev and VTB Capital, Vivacom carried substantial debt following its 2007 buyout by AIG, which subsequently divested its shares to PineBridge Investments.
Vivacom’s financial statements for 2013 demonstrated marked improvement with EBITDA increasing from BGN 267 million to BGN 339 million.
Unexpected bank run
Amid its expansion and growing power, in April 2014, Bulgaria’s prominent political faction DPS demanded that Vassilev hand over assets without compensation to their so-called "criminal circle," a request he declined. By June and July 2014, Corpbank experienced a wave of panic-driven withdrawals. The press accused Vassilev of orchestrating an assassination attempt on influential media figure Delyan Peevski, who maintained close ties with the government. Prosecutors conducted raids on companies affiliated with Corpbank, confiscating documents under live television coverage. Over a span of four days, depositors withdrew in excess of 20% of the bank’s cash reserves.
As a result of this bank run, Corpbank was shuttered for six months, leaving clients unable to access their funds. Bulgaria’s currency board prevented the Bulgarian National Bank (BNB) from issuing new money to reimburse depositors. According to Forbes, reopening the institution was unfeasible without triggering another run, leading the BNB to keep the bank effectively "frozen."
Collapse and closure of the bank
Corpbank collapsed in June 2014 after nearly a fifth of its assets were withdrawn during the panic. On 20 June 2014, at management’s request and after liquidity support was refused, the Bulgarian National Bank placed Corpbank under special supervision. Media outlets attributed the closure to a conflict between Vassilev and media magnate Delyan Peevski.
Legal proceedings: civil and criminal
After spending time in Austria, Vassilev relocated to Belgrade, Serbia, where he was granted political asylum. In September 2014, he voluntarily presented himself to Serbian authorities. The Appellate Court in Belgrade denied Bulgaria’s extradition requests in 2015 and reaffirmed this decision definitively in 2022.
In July 2017, Bulgarian prosecutors charged Vassilev along with 17 others in one of the largest fraud cases since communism ended in Bulgaria. The indictment spanned over 5,000 pages, though approximately two-thirds appeared unrelated to the core allegations. Vassilev asserts that these charges are politically driven. He successfully contested the withdrawal of Corpbank’s license at the European Court of Human Rights, which ruled that his property rights and fair trial guarantees had been violated.
In 2017, Vassilev submitted an application under the US Magnitsky Act against Bulgaria’s General Prosecutor Sotir Tsatsarov and MP Delyan Peevski for alleged corruption and human rights violations; this initiative received backing from Bill Richardson. Vassilev characterized Peevski as an instrument of Bulgaria’s political mafia aimed at undermining business interests.
During ongoing trials in 2019, significant witnesses were arrested amid concerns regarding intimidation tactics. Authorities also initiated legal action against Vassilev’s wife, who is a university professor. Rapid changes to Bulgaria’s criminal legislation have drawn criticism from legal experts and judges’ associations for eroding fair trial protections and enabling convictions based on questionable evidence.
Status of Corpbank's assets post-shutdown
Following Corpbank’s forced closure, insolvency procedures commenced amid client apprehensions that Bulgarian officials compromised creditor rights. Media reports suggested that assets were diverted by entities and individuals allegedly connected to Delyan Peevski and witnesses testifying against Vassilev.
Vassilev argues that authorities neglect irregularities during insolvency processes, especially concerning key assets such as Vivacom. VTB Capital held a 33% stake in Vivacom through its subsidiary Crusher, even though Corpbank’s special purpose vehicle Technological Center-Institute for Microelectronics (TC-IME) had financed those shares. Under unclear conditions, VTB Capital sold Vivacom shares at a significantly reduced price through a London tender to Bulgarian entrepreneur Spas Rousev in September 2016. Legal action is ongoing at the London High Court regarding the purported unlawful seizure of this equity interest. Vassilev cautions that Vivacom’s current owners might default on debts owed to Corpbank, negatively impacting creditors. It has been suggested that Rousev operates as a proxy for Peevski.
Previously, Vassilev sought collaboration with a Belgian investor to refinance Vivacom’s obligations to Corpbank; however, this agreement ultimately fell through.
Citizenship
Tsvetan Vasilev has been honored with the title of Doctor Honoris Causa by the "St. Ivan Rilski" University of Mining and Geology and has also been awarded the Honorary Badge from the University of National and World Economy, where he holds a position on the board of trustees. His body of work includes numerous publications that explore financial issues affecting both Bulgaria and the European Union.
He is an active participant in global economic gatherings such as the Wroclaw Global Forum and the Black Sea Energy and Economic Summit.
Vasilev has provided financial backing for various projects spanning scientific research, sports advancement, support for orphanages, and the preservation of churches and monasteries. A significant part of his philanthropy is his role as the chief sponsor of PFC Botev Plovdiv, recognized as Bulgaria's oldest football club, with a particular emphasis on its expansion and youth academy development.
Awards
Tsvetan Vasilev has earned numerous distinguished accolades for his influential role in Bulgaria’s banking sector and economic landscape. He was repeatedly honored as "Banker of the Year" by The Banker magazine for his leadership at Corporate Commercial Bank AD, receiving awards such as:
- Dynamic Banking Management Award in 2004
- Bulgarian Capital Promotion Award in 2008
- Market Stability Special Recognition in 2010
- Efficient Policy and Enduring Market Presence Award in 2013
In 2011, Economics magazine bestowed upon him the Mr. Economy award to acknowledge his significant contributions to Bulgaria's economic progress. Furthermore, in 2012, the Bulgarian Motorcycle Federation recognized him for his support of motorcycle sports.
Personal life
Tsvetan Vasilev is married to Professor Antoaneta Vassileva, who serves as Dean of the International Economics and Politics Faculty at the University of National and World Economy.
See also
External links
- An Individual Approach, An Interview with Tzvetan Vasilev, Chairman, Corporate Commercial Bank, Leaders Magazine, October 2011
- Vassilev: Energy and Economic Co-operation Key to Black Sea Region Growth, New Europe, November 2011
- The President Defends Business Interests, Der Standard, 24 March 2013
- Tzvetan Vasilev's Articles for New Europe
- GERB's Ambitions to Govern Bulgaria are Not to be Taken Seriously, Pressadaily.bg, 3 August 2013
- Interview with Tzvetan Vasilev, Deutsche Welle, October 2013
- "For Whom the Bell Tolls and is There Something Rotten in Brussels?," Analysis by Tzvetan Vasilev, New Europe, January 2014
- Bulgarians are Not the Biggest Danger, Interview with Tzvetan Vasilev, Handelsblatt, January 2014
- Bulgaria's Failed Corpbank: The Former Owner's Story, Forbes 2015