BANK MANAGEMENTS HIT BY TSUNAMI - II
In its previous issue the BANKER weekly wrote about the storm, which hit the managerial teams of BULBANK, Bulgarian Post Bank, Raiffeisenbank (Bulgaria), ROSSEXIMBANK, Bulgarian-American Credit Bank, Corporative Bank, Central Cooperative Bank and NEFTINVESTBANK. But these are not the only credit institutions, which have been shaken by replacements at their top levels.
Emil Angelov headed the recently established Management Board of EUROBANK, which was set up following its general meeting's decision of March 21, 2001 for changing the one-tier with a two-tier management system. The bank's former executive directors Jan Tushim and Roman Fechik - representatives of the Slovak fund Istrocapital, which held 85.35% of EUROBANK's capital - were appointed to the Supervisory Board. Bisser Mitrikov is the only member of the former managerial team, who was reelected to the new Management Board, which includes also Anton Todorov and Peter Slavov.
Finalization of the deal for the sale of Istrocapital's shares in EUROBANK was the major task, set to Emil Angelov. The candidate for their purchase was a consortium of foreign financial institutions, including the International Financial Corporation (within the World Bank group), the European Bank for Reconstruction and Development (EBRD), Commerzbank, the German state-owned bank Deutsche Investitions und Entwicklung Gesellschaft, and the German fund IBM. However, the deal failed as the consortium did not agree to pay the asked purchase price of about DEM24MN. But this did not impede the Slovak fund from transferring its bank shares to its subsidiary in Bulgaria Eurocapital AD. The repo deals, effected in EUROBANK's paper, gave rise to rumours that control over the financial institution would be gained by firms, which are shareholders in NEFTIVESTBANK, and that Mr. Angelov was assigned the task of supervising EUROBANK's operations. These allegations, however, were emphatically denied both by him and by NEFTINVESTBANK's management. One day, sooner or later, the name of EUROBANK's owner will become known. What is more important is that the foreign consortium, which was a candidate for its purchase, has not wasted its time. In the beginning of June 2001 it announced it was establishing a credit institution of its own - ProCredit Bank. The new bank's Management Board includes Christof Freitag, Guy de Ruck, and Petar Slavov, who was attracted from EUROBANK, and who received certificates from the Bulgarian National Bank (BNB) in mid-July. In the end of the same month the central bank promised to issue a licence to ProCredit Bank if within six months it deposits the entire equity capital of BGL12MN, rents an appropriate building for banking activities, and sets up an internal control department. According to ProCredit Bank's managerial team, all these requirements will be fulfilled in September, and the BNB is expected to grant a licence to the new financial institution in the same month.
The managerial problems in Tokuda Express Bank have hardly surprised anyone in the financial circles, and not only within them. By tradition, in the last few years scandals have been shaking that credit institution at least once a year. In 2001, however, Tokuda Express Bank could find a place in the Guinness World Records book for its managerial absurdities, as this is the only credit institution with two Management Boards. In April the members of the Supervisory Board took a decision to discharge Rozalina Natseva, Ventsislav Velev, and Assen Zlatanov as executive directors and appointed Stoyan Alexandrov, Assen Droumev, and July Popov (who quitted his managereal chair in the Central Cooperative Bank) as their successors. The new chiefs, however, could not assume their obligations as the court denied their registration in the bank's files. Assen Droumev has already been appointed Executive Director of the Zemedelie (Agriculture) State Fund. Stoyan Alexandrov also intends to quit and overtake the management of another bank.