Press Release: State aid: Commission approves liquidity support scheme for Bulgarian banks

The European Commission approved on 29 June 2014 a liquidity support scheme for Bulgarian banks as being compatible with EU state aid rules. In its assessment, it concluded that the state aid implied by the liquidity measure is proportionate and commensurate with the need to ensure sufficient liquidity in the banking sector in the particular circumstances.

Commission Vice-President in charge of competition policy, Joaquín Almunia, welcomed this measure to stabilise the Bulgarian banking system, which had been coming under pressure.

Five people had been arrested over the previous days in connection with an alleged plot to undermine banks in Bulgaria. The Bulgarian central bank had said there was a deliberate and systematic attempt to destabilise Bulgaria's banking system.

• Primary Source

ESO: Background information: State aid: Commission approves regional aid map 2014-2020 for Bulgaria http://www.europeansources.info/record/press-release-state-aid-commission-approves-regional-aid-map-2014-2020-for-bulgaria/

BBC News, 30.06.14: European Commission steps in to help Bulgarian banks http://www.bbc.co.uk/news/business-28085256

EurActiv, 30.06.14: Bulgarian bank run paves the way to early election http://www.euractiv.com/sections/elections/bulgarian-bank-run-paves-way-early-election-303148

EUObserver, 30.06.14: Bulgaria jittery after bank run 'plot' http://euobserver.com/economic/124807

ESO: Background information: Bulgaria heads for early elections after EU vote http://www.europeansources.info/record/bulgaria-heads-for-early-elections-after-eu-vote/

Bulgaria: Bulgarian National Bank: Press Release, 30.06.14: According to end-of-day data available at the BNB, last Friday’s tensions caused by the organized criminal attack against some Bulgarian banks have been already overcome at the close of the business day. As a result of the measures taken the banking sector in Bulgaria has returned to its normal functioning http://www.bnb.bg/PressOffice/POPressReleases/POPRDate/PR_20140630_2_EN

Euronews, 29.06.14: Bulgaria makes arrests over plot to destablise the banking system http://www.euronews.com/2014/06/29/bulgaria-makes-arrests-over-plot-to-destablise-the-banking-system/

Handelsblatt, 03.07.14: Bulgaria must do its homework (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE146114-Bulgaria-must-do-its-homework

24 Chasa, 01.07.14: Censorship can't stop banks from collapsing (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE146083-Censorship-can-t-stop-banks-from-collapsing

The New York Times, 07.07.14: In Bulgaria, Corruption and Mistrust Turn Promise Into Pain http://www.nytimes.com/2014/07/08/business/international/bank-runs-in-bulgaria-expose-fragility-and-flaws.html

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