A NEW BANK WILL APPEAR AT THE BULGARIAN FINANCIAL MARKET
Till mid June, 2001, the foreign consortium, which withdrew from the purchase of EUROBANK, will apply at BNB for official licence to establish its own credit institution in Bulgaria. It will finance the family business and the SMEs, said Christof Freitag, representative of the consortium in Bulgaria, to the Banker weekly. The consortium is formed by Commerzbank, EBRD, the International Financial Corporation (a part of the WB group), the IMI Investment fund and the German state bank Deutsche Investitions und Entwicklung Gesellschaft. In the end of April the latter was bought by another German state credit institution - Kreditanstalt fuer Wiederaufbau - which has also confirmed its participation in the consortium.
Freitag said that the new bank will be established with a capital of BGL12MN, which he considered fully adequate for initiating the operation in Bulgaria. He has already discussed its opening with Svetoslav Gavriysky, the BNB Governor, and with Iren Petrounova, the SMEA Chairman. Both of them demonstrated their willingness to support the bank establishment, but they have also warned Freitag that, if the consortium wants to fast develop crediting in Bulgaria, it would better buy a Bulgarian bank with a well developed branch network. According to Freitag, however, this development is not under consideration. He announced for the Banker weekly that the new bank will have a two level management system, with Supervisory Board of five members, and a Management Board of three members, who will be the bank's executive directors. Freitag himself will undertake the bank's management. He has even signed a contract with a real estate agency for renting a building to house the credit institution's headquarters.