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Central bank governor says deposits in Greek banks safe

05. March 2010. | 09:49

Source: Dnevnik

Clients of Greek banks operating in Bulgaria have no grounds for fears about the safety of their deposits, Ivan Iskrov, governor of the Bulgarian National Bank (BNB), said on Thursday.

Clients of Greek banks operating in Bulgaria have no grounds for fears about the safety of their deposits, Ivan Iskrov, governor of the Bulgarian National Bank (BNB), said on Thursday.

The statement came in response to concerns of Finance Minister Simeon Dyankov expressed last week that some Bulgarian banks, majority owned by Greek groups, may be directing liquidity towards their parents because of the public finance crisis in Bulgaria's southern neighbour.

The minister also said that he has requested technical assistance from the European Commission in assessing the possibility of liquidity outflows, to which the governor countered that the operations of the institutions were not monitored by the BNB in that respect and no report has been prepared on the issue.

The budget woes of a country are separate from the operation of its banking system. The banking system of Greece is one of the most stable, Iskrov added without specifying which other systems he had in mind.

According to the governor, the proposition of liquidity pull out towards Greece is irrelevant. On the contrary, a large amount of Greek savings have been directed to the Bulgarian economy through outflows from Greek banks to their Bulgarian subsidiaries and any implications otherwise are insulting to Greek fellow bankers, Iskrov added.

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