Brussels, 23/06/2014 (Agence Europe) - The Bulgarian government is prepared to bail out Corporate Commercial Bank (Corpbank) if necessary to prevent a bank crisis from breaking out in the country.
Reuters on Monday 23 June quotes the country's finance minister as saying that the government is prepared to nationalise Corpbank if the negotiations with shareholders fail to find a solution.
On Friday, small savers withdrew more than 20% of deposits in the bank, which led the Bulgarian central bank to take over Corpbank for three months.
The Bulgarian finance minister said Corpbank's clients would be able to withdraw their savings when the bank re-opens on 21 July and the government has promised that savers will be able to withdraw all their savings.
The Bulgarian central bank said at the weekend that the government may decide to inject cash into Crédit Agricole Bulgaria, recently bought up by Corpbank and now under the control of the central bank. (MB)