June 30, 2014 / 7:47 AM / 4 years ago

Bulgaria's First Investment Bank shares leap after state reassurances

SOFIA, June 30 (Reuters) - Shares in Bulgaria’s First Investment Bank jumped 33.94 percent on low volume in early trade on Monday after the president gave reassurances that citizens’ bank deposits were safe despite runs on two major lenders.

The share price of Bulgaria’s third largest lender tumbled by about 24 percent on Friday as jittery depositors spooked by an earlier bank run on Corporate Commercial Bank (Corpbank) rushed to withdraw savings.

“We see a recovery of trust in the market. The pick-up in the share price of First Investment Bank reflects a necessary correction after last week’s plunge and is also a result of the country’s resolve to support the banking system”, a trader with Sofia-based Karoll Brokerage told Reuters.

President Rosen Plevneliev, other senior politicians and the central bank have been trying to reassure Bulgarians that their savings are safe and backed by state guarantees. (Reporting by Tsvetelia Tsolova, writing by Gareth Jones)

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