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Bulgaria Prime minister quits in midst of banking crisis

July 24, 2014

Reuters in Sofia

Bulgaria's prime minister, Plamen Oresharski, has resigned, leaving his successor to sort out the country's worst banking crisis since the 1990s, with the fate of its fourth-largest lender undecided.

The departure of Oresharski, who has been in power for just over a year, has been expected since the ruling Socialists' poor showing in May's European parliamentary elections. His resignation paves the way for an interim government to take over in August and a general election in October.

The vote will mark the second snap election in less than two years in the EU's poorest member state. The instability has hampered efforts to make the economy more efficient and prompted a credit rating downgrade in June.

The Socialist-led coalition increased the minimum wage, cut red tape and, despite the banking crisis, found investors for a euros 1.5bn (pounds 1.2bn) sovereign bond last month. The Socialists ruled with the ethnic Turkish MRF party in a minority coalition, which relied on the support of the nationalist Attack party. Reuters

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Source: Guardian (UK)

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