ECB 'to Extend Backstop to Bulgaria' over Greece Crisis

Business » FINANCE | July 3, 2015, Friday // 14:54
Bulgaria: ECB 'to Extend Backstop to Bulgaria' over Greece Crisis A sign in German pointing to the European Central Bank, its headquarters seen behind, in Frankfurt, Germany, July 01, 2015. Photo by EPA/BGNES

The European Central bank is to extend a backstop facility to Bulgaria and could provide assistance to other countries in Southeast Europe in view of possible crisis contagion from Greece, Bloomberg reports.

Access to refinancing operations, with euros offered to the banking system against eligible collateral, is what the ECB might propose to Bulgarian central bank BNB, according to Bloomberg's sources who wished to remain anonymous.

Both institutions have declined to comment, at a time when the development in Greece carry risks to Bulgaria's trade also to the banking system, where nearly a third of assets are held by Greek lenders.

Banks in Bulgaria are of much concern to EU officials, other sources are reported as saying.

The full text is available here.

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Tags: European Central Bank, ECB, Bulgaria, greece, banks, trade, crisis
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