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Bulgaria's FIBank share drop a "normal response": spokesman
June 26, 2014 / 2:01 PM / in 3 years

Bulgaria's FIBank share drop a "normal response": spokesman

SOFIA, June 26 (Reuters) - A drop in shares in Bulgaria’s First Investment Bank is a normal market response to poor liquidity on the stock exchange and the “current situation” in the country’s banking sector, the spokesman for the bank told Reuters.

Shares in the country’s third biggest lender fell as much as 18 percent on Thursday following a ruling party lawmaker’s comments that another bank could be at risk of a bank run, traders said.

A run on Corporate Commercial Bank (Corpbank) last week prompted Bulgaria’s central bank to seize control of the lender, freeze its operations and start talks with shareholders about a rescue.

Shares in other Bulgarian banks were also down sharply.

“Given the poor liquidity of the Bulgarian bourse and the current situation (in the banking sector), this is a normal market response,” FIBank spokesman Ivaylo Alexandrov said.

“The shares could go up next week.” (Reporting by Angel Krasimirov; writing by Matthias Williams; Editing by Gareth Jones)

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