Sofia: The European Commission`s office in Sofia said on Monday that it has approved a state credit line of 3.3 billion leva (1.7 billion euros, $2.3 billion) for Bulgaria`s troubled banking sector.
The Commission said the "state aid implied by the provision of the credit line is proportionate and commensurate with the need to ensure sufficient liquidity in the banking sector in the particular circumstances".
"The scheme provides the necessary and proportionate liquidity in the wake of external, non-bank reated events," it added.
Bulgaria`s President Rossen Plevneliev was forced Sunday to deny that country`s banks were on the verge of collapse, as six people were arrested for "spreading false information" about several lenders.
"There is not a crisis in the banking sector. There is a crisis of confidence and a criminal attack," he said.
On Friday, messages spread online and via mobile phones said the First Investment Bank (FIB), the country`s third largest, was in dire financial straits.
The rumours provoked scenes of near panic in the capital, with queues quickly forming outside bank branches as clients rushed to withdraw cash.
