Bulgaria Stocks Drop Most in 16 Months as Bank Runs Out of Funds - Bloomberg

Bulgaria Stocks Drop Most in 16 Months as Bank Runs Out of Funds - Bloomberg:



"Bulgaria’s stock index slumped the most in 16 months as the central bank appointed administrators to manage the nation’s fourth-biggest lender after it ran out of funds and stopped all operations.



Shares of Corporate Commercial Bank were suspended today after slumping 9.8 percent yesterday. The Sofix Index (SOFIX) retreated 3.7 percent to 538.90 at the close in Sofia. The government’s July 2017 euro-denominated bonds fell, sending the yield up four basis points to 1.49 percent.



Bulgaria’s central bank appointed two administrators for three months to manage Corporate Commercial and suspended the bank’s management, central bank Governor Ivan Iskrov said at a news conference in Sofia today. The lender faced an “enormous run on funds” in the past week, Iskrov said. The development comes before Bulgaria starts investor meetings in Europe on June 23 for a possible euro bond sale."



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