BCC RECEIVED BGN1.1BN FROM THE SALE OF STATE-OWNED BANKS
The general assembly of the Bank Consolidation Company (BCC) is expected to approve the payment of BGN140MN as dividends on a meeting appointed for July 22. Six days earlier - on July 17, BCC Executive Director Nelly Kordovska told the BANKER weekly that the company's profit after tax amounts to BGN167.87MN. She added that she was not yet able to say the exact dividend amount, because some additional calculations need to be made for collaterals on the guarantee agreements with Bank Austria and the Hungarian OTP Bank. In October 2002, the Austrian bankers paid EUR82.5MN for 99% of the shares of BIOCHIM, and in May 2003 BCC signed an agreement with OTP for the sale of 100% of the capital of DSK Bank (for which the Hungarians will pay EUR311MN).The consolidation company has already paid BGN52MN worth taxes to the budget. If the general assembly decides to pay BGN140MN as dividends, over BGN139MN of them will be paid to the Ministry of Finance which holds 99.5% of the shares of BCC. So, the total amount that BCC will pay to the treasury will go beyond BGN191MN. It will be added to BGN153.52MN worth taxes and BGN508.61MN worth dividends that the company has paid to the budget from 1995 till the end of 2002.According to the revision of BCC's activity made by the Audit Office, from 1995 to the end of 2002 the total amount received from the sale of state-owned banks is approximately BGN1.1BN. Most of it - BGN704MN (EUR360MN), is due to the sale of BULBANK.In its report, the Audit Office pays special attention to the operation in 1996, through which the Ministry of Finance deposited in BCC ZUNK bonds of USD400MN total face value. It was BULBANK to sell these bonds to the ministry for USD200MN. They helped the consolidation company raise the capital of the then state-owned UBB, BIOCHIM, EXPRESSBANK (already called SG EXPRESSBANK), HEBROSBANK, Post Bank, Economic Bank, and BALKANBANK. In 1997, Economic Bank and BALKANBANK were declared insolvent and as a result, BCC lost BGN20.69MN. Out of the privatisation of the remaining five banks the consolidation company has received over USD100MN and EUR82.5MN. These two sums are equal to BGN346.4MN.The Audit Office reported that out of the sale of the banks recapitalised in 1996, BCC had received by USD74MN less than had been invested in these same banks' capital increases. The loss, however, has been covered by almost ten times by the revenues from BULBANK's privatisation and by the expected EUR311MN from the sale of DSK Bank. According to Nelly Kordovska, shortly after the deal of the savings institution's sale is finalised, the National Assembly will be entered by draft law according to which all BCC's liabilities on the guarantee agreements with the buyers of BULBANK, BIOCHIM and DSK Bank will be overtaken by the state. After this draft law is passed by parliament, BCC is to ask Sofia Civil Court about opening of the procedure of its liquidation. A statement will be published in the Official Gazette which to invite all creditors of the consolidation company to claim on their receivables within a period of six months. The liquidators (to be appointed by court) will place on a special account the sums needed for covering of all laid claims (if any). The rest of BCC's money will be distributed among its shareholders. After all procedures of satisfaction of eventual creditors and of distribution of the money among shareholders are ended, the company will be written off the firm registers.