BANK DSK CELEBRATES ITS 50TH ANNIVERSARY
The management of Bank DSK refrained from celebrating a brilliant 50th anniversary. The forthcoming changes in its Supervisory and Management Board have probably stopped the incumbent managers of the oldest Bulgarian credit institution to celebrate a noisy golden jubilee. They only organized a press conference in the Sheraton hotel on August 23, two days before the bank's official birthday.
DSK is one of the last credits institutions in Bulgaria, that are still controlled by the State: 75% of its capital is held by the Council of Ministers, and the balance of 25% is in the hands of the Bank Consolidation Company. However, this situation will not last much longer if the new Government keeps its promise. According to the Deputy Premier Nikolai Vassilev and the Minister of Finance Milen Velchev, DSK is to be privatized next year.
Within the 50 years of its presence on the domestic market Bank DSK, which started operations on August 25, 1951 (then named State Savings Bank), managed to assert itself as the people's bank. Most Bulgarians presently still keep their money on deposits in DSK. In addition, as of 1998 DSK started actively crediting citizens and currently controls about 90% of the market of consumer and housing loans. In May 1998 the Act on DSK's Transformation was passed, and eight months later on January 26, 1999 the bank was registered as a commercial company under the name Bank DSK and began operating in compliance with the Banks Act. From 1999 its management started to actively develop company crediting. In mid-2000 the clients were offered an opportunity to open deposits in foreign currencies and make settlements in foreign currency as well.
The Moneygram system for immediate international payments will be introduced by end-September 2001. The bank will offer to people, who owe DSK debit cards an overdraft up to BGL1,000.
In September Bank DSK will also launch its first issue of mortgage bonds. The credit institutions's management intends to offer foreign currency credits by the year-end. The terms for extending such credits, which used to be a taboo for the bank for 50 years, are still discussed by the managerial team. According to DSK Chairman Spas Dimitrov, however, they shall not differ considerably from the terms at which the other Bulgarian credit institutions extend such loans.