After Cyprus and Greece, Bulgaria's banking system has also come under pressure from a bank run. It happened in recent days, after the country's central bank had to temporarily take control of one of the major Bulgarian banks, due to liquidity problems.
According to analysts, one of the most immediate consequences of the bank run will be a reduction in external investment and, from an internal point of view, a negative impact on consumer and business confidence, even if the Sofia government has reacted quickly to the crisis , asking the EU for state aid to the banking system, an injection that has given new breath to the country's credit institutions.
Nonetheless, investor confidence has already been hit hard, with the Sofix down 5% in a week. Bulgaria, however, is in a rather stable economic situation, with debt at 22% of GDP and a deficit at 2%, despite the ongoing sharp deflation of prices. Meanwhile, the three main political forces in parliament - the socialists (BSP), the conservatives of the Gerb and the liberals of the Turkish minority party DPS - have agreed to hold early general elections on October 5th.
