Sofia, 28 May 1997 (RFE/RL) - Bistra Dimitrova, the head of Bulgaria's State Savings Bank (DSK), is now refusing to resign as she earlier promised. Our correspondent in Sofia says her announcement is expected to provoke a political battle in parliament, which is the only institution with the constitutional authority to fire her.
Dimitrova promised to resign after anti-communist Prime Minister Ivan Kostov last week asked her to step down. She had been appointed as the head of DSK by the previous Socialist-dominated parliament.
Dimitrova and DSK are the targets of a National Security Service (NSS) investigation into alleged illegal loans to other state and commercial banks. Most Bulgarians keep their savings at DSK.
Investigators said earlier today that DSK has supported secretive financial groups in Bulgaria for several years by issuing questionable loans. Interior Minister Bogomil Bonev says some Bulgarian banking circles connected with DSK are trying to sabotage a proposed currency board before it is implemented in July.