March 18 (SeeNews) - Bulgaria's banking system has sufficient capital and liquidity reserves to cope with the impact of the coronavirus crisis, the office of president Rumen Radev said after he met with central bank governor Dimitar Radev to discuss the challenges posed by the disease.
Backed by these reserves, banks in Bulgaria are able to apply flexibility and individual approach to their clients in order to reduce the negative effects of the restrictions imposed after the coronavirus outbreak, the Bulgarian National Bank (BNB) governor was quoted as saying in a press release issued by the president's office on Tuesday.
Last week, Bulgaria's parliament backed a government proposal to declare a state of emergency until April 13, in order to enable the authorities to more efficiently fight the spread of the disease. Subsequently, the country ordered all stores except for pharmacies and food stores to shut down until further notice. As of Wednesday, there are 81 confirmed coronavirus cases in Bulgaria, including two deaths from the disease.
The crisis will affect borrowers in different ways and the strength of its negative effects on them will depend on their starting financial position and their sector profile.
All of this suggests a new, even higher level of responsibility, analytical skills, and prudent management of work processes and risks at banks, the BNB governor was quoted as saying.