BACB RISES COLLATERAL ON MORTGAGE BONDS
Since October 4 all mortgage bonds issued by Bulgarian American Credit Bank (BACB) will be freely traded at the Bulgarian Stock Exchange. Their face value is EUR1,000, their yield - 7.75% and their term to maturity - August 1, 2004.BACB has increased the number housing credits which cover its mortgage bonds' issue from 216 to 236. The total nominal value of the bonds reaches EUR3.242MN and the total sum of the covering credits launched by the bank is EUR3.8MN. Most of them have been launched in US dollars and the depreciation of the USD against thr EUR made BACB include 20 more credits in its credit securities guarantee portfolio.The Mortgage Bonds Act rules that the collateral's nominal size should cover 110% of the value of securities. At present BACB covers 117 per cent. The information was presented by the bank's CEO Temenouga Gazdova and by its procurator Stoyan Dinchijsky during the first general meeting on October 4, 2001, of all companies to have bought mortgage bonds from BACB.The meeting was attended by representatives of Doverie Inc., Bulgarian Pension Insurance Company, IRC Newton-Sila, IRC Rodina and of the investment intermediary Eurofinance, which represented the interests of IC Orel-Life. At the meeting it was decided that all holders of mortgage bonds should be represented at the bank by Doverie Inc. and by Bulgarian Pension Insurance Company. They will keep track of the work done and of the bank's financial results and will support all the other involved companies with necessary information.In this way all our investors will receive the full information about our activity, they will follow how mortgage bonds are guaranteed, how credits are served and whether their investments are stable, commented Ivaylo Botev, manager of Razvitie, to the BANKER weekly.BACB's profit for the first nine months of 2001 is BGL5.678MN before taxation - or nearly BGL1MN more than all the profit for the entire 2000.