27.06.2014

We definitely have no grounds for an analogue with 1996 and both the institutions and the banking system have their protection mechanisms, Minister of Finance Petar Chobanov stated in an interview for the BNT Panorama programme. He added that at that time we had banks with substantially worsened assets and a dominated by heavily indebted state owned enterprises economy which was financed by the budget through state owned banks. The situation now in definitely not the same and any parallel is unnecessary. According to Minister Chobanov now we are witnessing a contaminated environment and there are suspicions that the rumours are targeted and the competent authorities are already investigating. Minister Chobanov commented that we could not speak about panic at the moment but the susceptibility of the citizens to rumours was to their detriment and they were losing return on their deposits and therefore it was better for them to calm down. The Minister of Finance yet again stressed that the banking system was stable. People feel secure for their deposits and we witness behaviour where they move their deposits from one bank to another which is not necessary because the protection mechanisms are in place.

According to Minister Chobanov the liquidity of the banking system is good and the Government is working in close coordination with the Bulgarian National Bank in order to find the best solution and the responsible political forces support the actions taken. He commented that "lately we are witnessing thoughtless political statements about bankruptcy of the state", but the issue of external debt has shown that "the international financial markets do not think that the state is in bankruptcy". A number of meetings have been organised with investors who have convinced themselves in the strengths, low deficit, low debt level, and in the efforts of the Government to support the business environment which is also evident from the economic indicators. The assessment of the financial markets is categorical and they trust us.

In respect of the appeal to turn to the International Monetary Fund Minister Chobanov stated "let us try to manage with our own efforts and to have more confidence in our own capabilities". He added that people should not worry and should not give in to panic, they should trust the banks where they had deposited their money because the Bulgarian banking system was stable and its indicators were good.