FinMin Warns against Opposition Leader's 'Overreaction' on Banks

Business » FINANCE | June 28, 2014, Saturday // 13:44
Bulgaria: FinMin Warns against Opposition Leader's 'Overreaction' on Banks Bulgarian Finance Minister Petar Chobanov. Photo by BGNES

Excessively emotional political messages by GERB party's leader Boyko Borisov could lead Bulgaria to destabilization, Finance Minister Petar Chobanov said.

In an official statement to the media he warned against "uncontrollable and incompetent" comments on "sensitive" issues such as financial security and stability of the state.

"I firmly insist that attempts at destabilization be stopped - there is a date for early elections, consultations are under way, and leaders of parliamentary parties are looking for the best formula for the country's future and are aiming to overcome political instability we are observing after the EU elections," Chobanov stressed.

Chobanov underscored that Bulgaria's financial stability had been confirmed by international institutions.

He cited as an example a "wide range" of European investors that Sofia managed to attract for its latest EUR 1.493 B (roughly BGN 2.486 B) debt emission earlier this week.

Chobanov made his remarks after Borisov called for his resignation and suggested the International Monetary Fund (IMF) should grant a loan to Bulgaria which the country should use to tackle its banking problems.

His words came amid heightened tensions over rumors that pushed thousands to withdraw savings from Bulgaria's First Investment Bank on Friday.

The government, the Bulgarian National Bank (BNB) and the financial company itself assured hours later the information was ill-grounded and ill-intentioned and that the bank, as well as the financial system, were stable.

Similar rumors led last week another Bulgarian bank, the Corporate Commercial Bank (KTB), to exhaustion of liquidity and forced it to demand that the BNB place it under conservatorship.

The Interior Ministry and the Financial Supervision Commission are now set to investigate into misleading news targeting two of Bulgaria's biggest banks.

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Tags: banking system, IMF, conservatorship, KTB, First Investment Bank, BNB, Boyko Borisov, Petar Chobanov, banks
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