Bulgaria C-Bank 'Warned Greek-Owned Banks' over Grexit Scenario

Business » FINANCE | April 20, 2015, Monday // 12:38
Bulgaria: Bulgaria C-Bank 'Warned Greek-Owned Banks' over Grexit Scenario Photo by BGNES

Bulgaria's central bank recommended Greek-owned banks to clean their portfolios of securities and deposits which "could incur losses" if Greece leaves the euro, media reports suggest.

The Bulgarian National Bank (BNB) "kindly advised" in March those financial entities, Capital daily quotes a source from a lending institution whose shareholders include Greek citizens.

However, according to Capital the source added local branches of Greek-owned banks had already taken the step to prevent any repercussions if Greece quits the Eurozone.

Four Greece-based banks operate in Bulgaria, including UBB, Postbank, Piraeus Bank and Alpha, holding 23% of assets in the banking system as of end-2014.

Last week Greek daily Kathimerini wrote that central banks of all Southeast European nations had recommended Greek banks that are active in the respective countries to sell off state securities.

In February, a Reuters report opined that strong banking and trade links of Southeast European countries with Greece put states in the region at risk if Athens moves to leave the single currency area.  

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Tags: greece, euro, BNB, Bulgarian National Bank, banks, Grexit, Eurozone, Bulgaria

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