News Column

EU approves credit for Bulgarian banks

June 30, 2014



BRUSSELS, June 30 (KUNA) -- The European Commission Monday approved a credit line of 3.3 billion levs (USD 2.3 bn) to Bulgaria in response to speculative attacks against the country's banking system.

The EU's executive body in a statement said that last week, it transpired that certain individuals have been targeting the Corporate Commercial Bank and the First Investment Bank urging customers to withdraw their deposits.

This created concerns about the liquidity of the bank in question and risked spilling over to some other institutions, despite the fact that the Bulgarian banking system is well capitalized, it noted.

Some of the individuals involved have been arrested over the weekend.

First Investment Bank paid out a significant amount to depositors before closing temporarily in the early afternoon of Friday, June 27, to replenish the liquidity in the branches and ATMs.

In order to reassure depositors and confirm commitment to the banking system, the Bulgarian authorities decided to provide the banking sector with the necessary liquidity.

The European Commission was notified of the scheme in the weekend and it was subsequently approved.

The First Investment Bank will be provided with ample liquidity under the scheme to ensure that it will be able to reopen on June 30, it added.(end) nk.wsa

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Source: Kuwait News Agency


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