Bulgarian Pres. Blames ‘Lack Of Faith In Institutions’ For Bank Runs

“Bulgarians’ lack of faith in institutions sparked runs on two banks and triggered the worst financial crisis in 17 years, the nation’s president said.  ‘Let me make this very clear: there is no banking crisis in my country, but there is a crisis of confidence,’ Rosen Plevneliev said today.  With low trust in institutions, rumors, attempts at destabilization and speculative attacks can ‘create a panic,’ the president said.  The central bank blames an ‘organized attack’ of ‘criminal actions’ for the run on First Investment Bank. Corporate Commercial Bank lost deposits because of a dispute between a majority shareholder and a large depositor, Capital newspaper reported June 18, citing unidentified people.”


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