Bulgaria’s FinMin Says Run on Banks was Noise

Bulgaria’s government bond issue late last month is proof that foreign investors are not spooked by the recent bank run in the country, the nation’s finance minister told CNBC, adding that the news was written off as “noise”.

Finance minister Petar Chobanov shrugged off fears of another attack on the banks as state aid and immediate liquidity is now available and the Bulgarian public is aware that the state is backing the banks, he said.
Strong appetite for the country’s first issue in two years helped Bulgaria raise almost 1.5 billion euros ($2.04 billion) days after two of Bulgaria’s largest banks faced a bank run.

“We managed to sell this 10-year and the success of the bond shows that investors have confidence,” he said.

“I think the strong macroeconomics and fiscal fundamentals are also very important for the investors and they will continue to come to Bulgaria,” he added.
Chobav said the country has a diversified investment base of central banks, investment and pension funds with investors from Austria, Germany and the U.K.

via CNBC

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