June 27, 2014 / 8:26 AM / 3 years ago

Bulgaria PM says no grounds for concern over banking system

SOFIA, June 27 (Reuters) - Bulgaria’s Prime Minister Plamen Oresharski said on Friday said there was no cause for concern about the country’s banks after a run on its fourth largest lender last week.

“I see no grounds for concern among the citizens of the country. The country has sufficient tools (to deal with the situation),” Oresharski said in a statement. “We will support all efforts of the central bank ... not to allow any shaking of public trust in one or other institutions.”

The statement came as Bulgarian banking shares fell sharply for a second consecutive day on the Sofia stock exchange on thin trading volume.

Last week, customers unnerved by reports of shady deals involving Corporate Commercial Bank (Corpbank) rushed to withdraw their deposits, prompting the central bank to seize control of the lender and shut down its operations.

Reporting by Angel Krasimirov; Editing by Gareth Jones

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