Money

Bulgaria Tries To Contain Ban Run

Share on FacebookTweet about this on TwitterPin on PinterestShare on StumbleUponEmail this to someoneShare on Google+

Bulgaria - Public Domain

It all started roughly 10 days ago when messages began circulating warning people that the country’s financial system was unstable. Bulgaria’s Corporate Commercial Bank ran out of money and was placed under state control.

 

The collapse revived memories of a previous Bulgarian banking crash in the 1990s, and as the rumors kept coming another Bulgarian bank — First Investment Bank — was overwhelmed by people rushing to withdraw their savings.

That bank was forced to close temporarily on Friday after its branches and ATMs were drained.

In response, the central bank said over the weekend it would provide a credit line worth 3.3 billion Bulgarian lev ($2.3 billion) to the country’s banks to reassure people about the safety of their savings.

(Read the rest of the story here…)

Categories: Money, World

Tagged as: , ,