Arab Today, arab today bulgaria scrambles to stop bank run after aids
Last Updated : GMT 08:56:04
Arab Today, arab today
Arab Today, arab today

Bulgaria scrambles to stop bank run after aids

Arab Today, arab today

Arab Today, arab today Bulgaria scrambles to stop bank run after aids

Bulgaria's First Investment Bank
Sofia - AFP

Bulgaria on Monday scrambled to reassure savers its beleaguered banking system was "functioning normally" after Brussels extended a credit line to stop a run on two banks turning into a full-blown crisis.
Non-eurozone Bulgaria has blamed the situation, which has raised fears of a repeat of the country's devastating banking crisis of 1996-97, on "criminals" spreading false rumours.
On June 20 the central bank closed temporarily the fourth-largest private lender, Corporate Commercial Bank (CCB), after doubts about its solvency led panicked customers to try to empty their accounts.
Late last week, more rumours online and via mobile phones sparked a run on First Investment Bank (FIBANK), the third-largest, provoking scenes of near-hysteria outside branches.
Not helping the situation is ongoing political uncertainty, with the government expected to resign after only 13 months in office in the coming weeks ahead of early elections in October.
On Monday morning, dozens of people queued outside FIBANK branches, most to withdraw their savings. They were fewer, however, than on Friday when some 400 million euros ($545 million) was taken out in one morning.
"I am indignant that people have money and can't withdraw it easily but have to wait in queues," said Ekaterina Vasileva, 67, who had been waiting in line for two hours.
"I don't trust the government or any other institution enough to believe what they say on television or radio," she told AFP.
Bulgaria's central bank said in a statement Monday that "the tension that started Friday after an organised criminal attack against some Bulgarian banks had been overcome by the end of today".
"As a result of the undertaken measures, Bulgaria's banking sector is functioning normally," it added.
FIBANK said that it was back to its "usual working regime" by noon (1000 GMT).
President Rosen Plevneliev on Sunday was forced to deny Bulgaria's banks were on the verge of collapse, as police arrested six people for "spreading false information".
"There is not a crisis in the banking sector. There is a crisis of confidence and a criminal attack," Plevneliev said.
A state credit line proposed by the government and approved by Brussels on Monday provided for a 3.3-billion-leva (1.7-billion-euro, $2.3-billion) "liquidity support scheme" to help stricken lenders hit by people withdrawing money.
The European Commission also tried to calm the situation, saying Bulgaria's banking system was "well capitalised and has high levels of liquidity" compared to other countries in the European Union.
- 'Still fragile' -
Analysts at Capital Economics said that they did not expect "contagion" to banks in other "emerging markets" in eastern and central Europe.
"But it does serve as a reminder that some countries' financial sectors are still fragile", Capital said.
Bulgarians have bitter memories of a grave financial crisis in 1996-97, when fears about the liquidity of one lender prompted a massive bank run that left 14 banks bankrupt and sparked hyperinflation.
Since then an IMF-led "currency board" regime has been in place, pegging the lev currency to the euro at a fixed rate, curtailing the central bank's room for manouevre on monetary policy and obliging it to keep large amounts of foreign currency in reserve.
Economists and politicians have sought to play down speculation that the current instability might force an abandonment of the currency board and a hugely damaging devaluation of the lev.
Bulgaria continues to be beset by political instability, meanwhile, with the Socialist-backed government of technocrat Prime Minister Plamen Oresharski expected to resign in the coming weeks ahead of elections likely on October 5.
Oresharski's short-lived government has been the focus of almost constant protests, with voters angry about poverty, corruption and cronyism.
The snap vote is expected to return the conservative GERB party to power, whose leader -- ex-premier Boyko Borisov -- was himself forced to resign in February 2013 after nationwide demonstrations.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bulgaria scrambles to stop bank run after aids Arab Today, arab today bulgaria scrambles to stop bank run after aids

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday