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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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza