Major Bulgarian bank hit by run on deposits, second within a week

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SOFIA, Bulgaria – A second Bulgarian bank has been hit by a run within the past week, prompting authorities to issue a statement claiming there is no reason for depositors to worry about their money despite reports the financial system is shaky.

First Investment Bank, Bulgaria’s third-largest lender, was the target of media rumours on Friday alleging that it was short on liquidity, causing public panic and a run on deposits.

The central bank called the rumours “an attempt to destabilize the state through an organized attack against banks without any reason” and demanded legal action against those spreading “untrue and ill-intentioned rumours.” The government said there is “no cause for concern.”

Last week, Corpbank was hit by a run, leading the central bank to put it under supervision for three months.

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