SOFIA, June 30 The European Commission said on
Monday it had approved a Bulgarian request to extend a credit
line of 3.3 billion levs ($2.30 billion) in support of banks
that have come under speculative attack.
"The Commission concluded that 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
system in the particular circumstances," the EU executive said
in a statement.
The statement said Bulgaria's banking system was "well
capitalised and has high levels of liquidity compared to its
peers in other member states. For precautionary reasons,
Bulgaria has taken this measure to further increase the
liquidity and safeguard its financial system".
The move follows runs by jittery depositors on two major
Bulgarian commercial banks in the space of a week.
($1 = 1.4325 Bulgarian Levs)
(Reporting by Gareth Jones; Editing by Matthias Williams)