Six Arrested for Bulgaria Bank Rumours

The malicious rumours from last week caused mass panic and, as a result, thousands of people withdrew their savings (a total of more than 400 million euros) from First Investment Bank—the bank under attack.

The arrested are accused of sending texts and emails warning of bankruptcy and of using social media such as Facebook and YouTube to spread the ill-intentioned rumours.  

The Bulgarian National Bank, BNB, demanded changes to the Penal Code and asked for the imprisonment of those who “disseminate false information on a bank or other financial institution that could cause panic among the population”. The proposal was submitted today and suggests a sentence of five to ten years in prison.

BNB also asked all politicians to restrict their public speaking about the banking system.

“We call upon the politicians and the whole society for a sober and reasonable judgment as regards every word and every action on the subject of banks,” BNB said in a press release from June 28th.

Bulgaria has already taken measures to increase the liquidity of the banks and further secure its financial sector.

On Sunday, June 29, Bulgaria asked the European Commission to authorize a credit line of 3.3 billion BGN to be provided to the banking system in the country by the Bulgarian state in order to strengthen the financial sector.

The Commission approved the liquidity support scheme for Bulgarian banks and said in an official statement that it was “compatible with EU state aid rules”.

The Commission also stated that despite the recent liquidity concerns, “the Bulgarian banking system is well capitalized and has high levels of liquidity compared to its peers in other Member States”.