The stability of the EU and the eurozone is a matter of paramount importance for Bulgaria, Prime Minister Boyko Borisov has said after Greeks rejected the creditors’ terms of a cash-for-reforms deal.

The resounding ‘No’ in Sunday’s referendum in Greece has set Athens up for further clash with European creditors and uncertain future in eurozone.

Borisov said in a telephone conversation with the President of the European Council, Donald Tusk, on Monday night that for Bulgaria it is important that Greece – a neighbor and a close partner in the EU - achieve economic and financial stability, according to the government’s press service in Sofia.

Tusk has called a eurozone summit for late Tuesday afternoon to discuss the situation after the referendum, the implications of the Greek vote for the eurozone and a future course of action.  

Borisov said he hoped that the summit will provide a new opportunity for finding a solution that would be acceptable to both the eurozone and all EU Member States.

Bulgaria isn’t a member of the eurozone but being the only EU neighbour of Greece, the country feels it could be affected by a possible Greek default. This could come mainly through Bulgaria’s trade links with its southern neighbour and the large number of Bulgarians working in Greece who might lose their jobs if the crisis worsens.

Borisov said that Bulgaria had taken all necessary measures to ensure the security of its banks regardless of developments in Greece. Tusk confirmed the Bulgarian government has been acting adequately and urged people not to succumb to speculation on the matter.

Four Greek-owned banks make up a fifth of the Bulgarian banking system. Bulgaria’s central bank said in late June that measures are in place to insulate Greek-owned banks from contagion. It also said they are financially independent from their parents, they hold no Greek government securities, and have a capital adequacy and liquidity levels higher than the average for banks in Bulgaria.

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