News Column

Banking Savers withdraw cash from Bulgarian lender

July 1, 2014


Dozens of depositors withdrew their savings from Bulgaria's third biggest bank, First Investment Bank, yesterday despite assurances from the government and the EU that their money was safe, after a similar run shut down another major lender last week.

Bulgarian authorities have arrested four people suspected of trying to destabilise the banking system in a phone and internet campaign. However, the queues forming to withdraw cash have thrown a spotlight on weak economic governance in the EU's poorest state.

A credit line of 3.3bn levs (pounds 1.3bn), requested by Bulgaria, was approved yesterday by the European commission. The EU executive said the Bulgarian banking system was "well capitalised and has high levels of liquidity compared to its peers in other member states" of the 28-nation bloc. Reuters

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Source: Guardian (UK)

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