SOFIA, May 17 (Reuters) - Bulgaria's prime minister has asked the Balkan country's top security agency to investigate rumours that First Investment Bank (FIBank) <FIB.BB> was facing financial problems, the government said on Saturday.
Sergei Stanishev reiterated that all banks that operate in the European Union newcomer were financially stable and wanted the agency to check whether the spread of rumours was a "scenario" plotted by competitors or had a political aim.
"The state agency will investigate the case which has caused panic among the Bulgarian citizens in the past days," Stanishev said in a statement. "The government will never allow citizens saving to suffer," he said.
On Friday, the central bank said FIBank and other banks were in "excellent condition", dismissing the rumours as unfounded. The move had calmed the bank's clients and decreased deposit withdrawals from Bulgaria's sixth largest lender.
The rumours have spread via several Bulgarian internet blogs in the past two weeks. Central Bank Governor Ivan Iskrov said on Friday that the spread of the rumours was a scenario aiming at damaging FIbank's credibility.
Bulgarians still keep bitter memories of a 1996/97 financial crisis that wiped out a third of the Balkan country's banks. The European Union newcomer has since introduced a currency board regime that pegs the national currency to the euro.
FIBank had assets worth of 4.07 billion levs ($3.22 billion) at end-March, when it posted a net profit of 15.07 million levs up from 10.1 million profit a year ago.
Bulgaria's 29 banks are mainly owned by big European lenders, many from Italy, Austria, Germany and Greece.
(Reporting by Angel Krasimirov; Editing by Ron Askew)
((angel.krasimirov@reuters.com; +359 887 988 196))
Keywords: FIBANK BULGARIA/
* Canadian dollar closes flat, but up on week
* Lofty oil prices lend support to Canadian dollar
* Bond prices lower across the curve
By John McCrank
TORONTO, May 16 (Reuters) - The Canadian dollar was flat
against the U.S. dollar on Friday in quiet trade ahead of
Canada's Victoria Day long weekend, but it did record its
second straight weekly gain as the commodity-linked currency
drew support from robust oil prices.
Canadian bond prices, with no key economic data to
consider, drifted lower along with the U.S. market.
The Canadian currency closed at US$1.0002, valuing a U.S.
dollar at 99.98 Canadian cents, up a bit from US$1.0000 at
Thursday's close.
The currency rose 0.6 percent this week after a gain of 1.4
percent last week.
Early in the session, the Canadian dollar rose to US$1.0049
as U.S. crude oil <CLc1> touched a record high near $128 a
barrel. See [ID:nN16574659]. But the currency fell back to
parity as oil prices eased.
Canada is a major oil producer and exporter and its
currency often follows prices for the commodity, a trend that
started to regain momentum in recent weeks.
While the Canadian dollar was pretty much unchanged versus
the greenback, it fell against most other major currencies, in
tandem with the U.S. dollar, said Camilla Sutton, currency
strategist at Scotia Capital.
That was due to weak U.S. consumer confidence data, which
raised some concerns about U.S. second-quarter economic growth.
The United States is by far Canada's biggest trading partner.
Next week the slate of Canadian economic data picks up with
a slew of reports that include April inflation data on
Wednesday and March retail sales on Thursday.
"Next week the retail sales data will be more important
that the CPI, just because I think CPI will show what we all
know already, which is that inflation pressures in Canada are
really very moderate," Sutton said.
BONDS TILT LOWER
Canadian bond prices tilted lower in quiet trade as the
bond market closed early for the long weekend.
"We've got really just the mildest of selloffs," said Eric
Lascelles, chief economics and rates specialist at TD
Securities.
"But we do have some pretty big numbers next week and I
suppose there will be some room for Canadian bonds to rally."
The two-year bond was down 6 Canadian cents at C$101.87 to
yield 2.798 percent. The 10-year fell 13 Canadian cents to
C$103.25 to yield 3.575 percent.
The yield spread between the two- and 10-year bonds was
77.7 basis points, down from 78.6 at the previous close.
The 30-year bond dropped 1 Canadian cent to C$116.29 for a
yield of 4.041 percent. In the United States, the 30-year
Treasury yielded 4.577 percent.
The three-month when-issued T-bill yielded 2.61 percent,
down from 2.63 percent at the previous close.
(Editing by Peter Galloway)
((john.mccrank@thomsonreuters.com; +1 416 941 8083; Reuters
Messaging: john.mccrank.reuters.com@reuters.net))
For Reuters bond and money market pricing information
double click on one of the following:
<CAD=> Canadian dollar live quote, high/low
<FXNEWS> Headlines from global forex markets
<CDBN> Canadian bond prices
<CDMM> <CDMN> <0#CAMMKT=> Canadian money market prices
<CABONEA> Canada-U.S. spreads (live)
<YLDS1> World yield index
<CA30YT=RR> 30 year benchmark
<0#CGB:> <CGBc1> <CA/FACTOR1> <MEIRP> - Montreal Exchange
bond futures pricing information
<CAMCI=> Bank of Canada monetary conditions index (Reuters
calculation)
<CACALL=> Canada's call loan or overnight lending rate
<=CAD> Canadian dollar G10 trade-weighted index.
For the fixed-income market speed guides, double click on
one of the following:
<CA/MMKT1> <CA/MMKT2> <CA/DEBT> <BONDS> <TREASURY> For
related news, double click on one of the following:
[CAN] Canadian news
[NAT] North American Treasuries news
[M] Money news
[D] Debt news
[MF] Markets news
[GVD] Government debt news
[MMT] Money market news
[INT] Interest rate news
[CEN] Central bank news
[CA/] Canadian bond market stories
Keywords: MARKETS CANADA DOLLAR BONDS
TO HAVE EVENTS INCLUDED, PLEASE CONTACT THE WASHINGTON
NEWSROOM AT 202-898-8370/202-898-8318, OR BY FAX AT
202-898-8383 OR 202-842-2527
THIS DIARY IS FILED DAILY.
***Denotes a new entry.
--------------------------------------------------------
MEETINGS
FOMC MEETING DATES (one-day meetings on Tuesday; two-day
meetings Tuesday-Wednesday, except where noted. Decision
released on second day of two-day meetings)
2008
June 24-25 (Decision expected at 1415 EDT/1815 GMT)
August 5 (Decision expected at 1415 EDT/1815 GMT)
September 16 (Decision expected at 1415 EDT/1815 GMT)
October 28-29 (Decision expected at 1415 EDT/1815 GMT)
December 16 (Decision expected at 1415 EST/1915 GMT)
2009
January 27-28 (Decision expected at 1415 EST/1915 GMT)
----------------------------------------------------------
FEDERAL RESERVE CHAIRMAN BEN BERNANKE
Thursday-Friday, May 29-30
BASEL, Switzerland - Bank for International Settlements'
Basel Committee on Banking Supervision hosts "Risk Transfer
Mechanisms and Financial Stability" conference. Speakers
include (INVITED) Federal Reserve Chairman Ben Bernanke.
Details TBA. Information:
http://www.bis.org/bcbs/events/rtf08rtmfs.htm
Wednesday, June 4
CAMBRIDGE, Mass. - (INVITED) Federal Reserve Chairman Ben
Bernanke speaks at Harvard University, 1400 EDT/1800 GMT.
Speech topic, Q&A, other details TBA. Harvard Yard,
Tercentenary Theater. Contact: 617 495-1585. Information:
http://www.news.harvard.edu/gazette/2008/04.10/99-classday.html
Monday, June 9
CHATHAM, Mass. - (INVITED) Federal Reserve Chairman Ben
Bernanke gives dinner speech before the Federal Reserve Bank of
Boston "Understanding Inflation and the Implications for
Monetary Policy: A Phillips Curve Retrospective" conference,
1800 EDT/2200 GMT. Other details TBA. Wequassett Inn, Pleasant
Bay Road. Contact: Tom Lavelle, 617 973 3647 or
Thomas.L.Lavelle@bos.frb.org; or Donna Dulski, 617 973-3029 or
Donna.Dulski@bosfrb.org; hotel 800 225 7125. Information:
http://www.bos.frb.org/phillips2008
----------------------------------------------------------
OTHER FED OFFICIALS
Saturday, May 17
ATLANTA - Federal Reserve Bank of Atlanta President Dennis
Lockhart speaks on "International Capital Flows" before the
Southern Center for International Studies Young Professionals
Program on Globalization and Emerging Economies, 0900 EDT/1300
GMT. Audience Q&A expected. No media Q&A. Goizueta Business
School at Emory University, main auditorium, 1300 Clifton Rd.
Contact: Anitha Vadavatha, 678 596 5573 or animac267@gmail.com
ST. PETERSBURG, Fla. - Federal Reserve Bank of Dallas
President Richard Fisher gives commencement address at Admiral
Farragut Academy, 0920 EDT/1320 GMT. No Q&A. NOTE: No
discussion of the economy or monetary policy. Admiral Farragut
Academy, 501 Park Street North. Must RSVP: James Hoard, 214 922
5307 or james.hoard@dal.frb.org
Tuesday, May 20
NEW ORLEANS - Federal Reserve Board Governor Donald Kohn
speaks on the economic outlook before the National Conference
on Public Employee Retirement Systems Annual Conference, 0800
CDT/0900 EDT/1300 GMT. No Q&A. Hilton New Orleans, 2 Poydras
Street. Must RSVP: Ryan Francis, 202 624-1489 or 202 270-7489
Wednesday, May 21
WASHINGTON - Federal Reserve Board Governor Kevin Warsh
speaks on "Using the Federal Funds Rate in Extraordinary Times"
before an Exchequer Club luncheon, 1300 EDT/1700 GMT. Audience
Q&A expected. St. Regis Hotel, 923 16th Street N.W. Must RSVP:
Nancy Wilkins, 202 326 5803
Thursday, May 22
AMELIA ISLAND, Fla. - Federal Reserve Board Governor
Randall Kroszner speaks on "Prospects for Recovery and Repair
of Mortgage Markets" before the Conference of State Bank
Supervisors (CSBS) 2008 Annual Meeting and Conference, 0900
EDT/1300 GMT. Audience Q&As expected. Amelia Island Plantation,
6800 First Coast Highway. Must RSVP: Mary White, 202 728 5715,
Tonita Allers, 202 728 5704 or Mary Beth Quist, 202 728 5722.
Hotel: 904 261 6161. Information:
http://www.csbs.org/AM/Template.cfm?Section=Home&TEMPLATE=/CM/HTMLDisplay.cfm&CONTENTID=15582
ALL TIMES EDT/GMT
TREASURY DEPARTMENT:
Treasury Department announces weekly sale of 4-week bills,
11 a.m. (1500 GMT)
Treasury's Department's weekly sale of 3-, 6-month bills, 1
p.m. (1700 GMT)
FEDERAL RESERVE:
The Federal Reserve announces details of a Term Auction
Facility auction, 10 a.m. (1400 GMT)
ECONOMIC INDICATORS:
The Conference Board releases its report on April leading
economic indicators, 10 a.m. (1400 GMT). Economists in a
Reuters survey forecast an unchanged reading, following a 0.1
increase in March.
((U.S. Treasury Desk; +1-646-223-6300))
Keywords: DIARY USTREASURIES
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