EU Commission approves aid for Bulgaria's First Investment Bank

First Investment Bank AD

25/11/2014 10:45

BRUSSELS, Nov 25 (Reuters) - The European Commission ruled 
on Tuesday that liquidity measures granted by Bulgaria to First 
Investment Bank (FIB) in response to a bank run earlier this 
year were in line with EU rules on state aid. 
    Bulgaria granted the support to FIB, the country's 
third-biggest lender, in the form of a state deposit when it was 
hit by the bank run in June. Bulgaria has since applied for an 
extension of that deposit by up to 18 months. 
    The Commission said in a statement that the liquidity 
support was linked to the crisis in Bulgaria in June and July 
and was not linked to structural problems at the bank. 
    "Full repayment of the deposit now could destabilise both 
the bank and the Bulgarian financial system," it said. 
 (1 US dollar = 1.5726 Bulgarian lev) 
 
 (Reporting By Philip Blenkinsop; editing by Adrian Croft) 
 ((philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters 
Messaging: philip.blenkinsop.thomsonreuters.com@reuters.net)) 
 
Keywords: EU BULGARIA/STATEAID