Банкеръ Weekly

Briefs

BULGARLEASING PUMPS UP EIBANK'S PROFIT

All rumours spread by some medias that Svetoslav Bozhilov is to resign from the position procurator of Economic and Investment Bank (EIBank) and that Zdravko Stoitsov is to be appointed at his place were proven absolutely wrong. George Prohasky - Chairman of the bank's Management Board, and Rositsa Lissichkova - CEO, announced to the BANKER weekly that Mr. Bozhilov will preserve his post and that Mr. Stoitsev will keep actively working on deals concerning settlement of the credit institution's receivables.
After EIBank's general assembly, which took place at Hilton hotel, Sofia, at closed doors and with high security measures, Mr. Prohasky reported that bank's profit exceeded BGL10.5MN for the first five months of 2001. Over 20% of the profit are due to collected receivables on credits, inherited by the bankrupted Economic Bank, which credit institution was acquired by BRIBANK on June 23, 2001, and was later renamed to EIBank.
Our major success was the agreement we signed with Bulgarleasing in April, which settled our receivables of USD49MN, informed Mr. Prohasky the journalists. Naturally, the liability was reduced. The leasing company agreed to pay a small percentage and will pay up the better part of the liability by transferring to us its receivables from several enterprises.
George Prohasky and his colleagues from EIBank's Management Board refused to reveal any further details on the deal with Bulgarleasing. Yet insiders share the opinion that much of the bank's income is derived from the leasing company's deposits.
Till the end of 2001 EIBank's managers plan to report net profit over BGL20MN. This will enable the credit institution to cover nearly half of all expenses to be made at the beginning of 2001 on the liabilities (amounting to DEM37MN) to creditors of the former Economic Bank. Mr. Prohasky states that the above sum has already been provided in an account and there exists no problem to be paid.
At EIBank's general meeting its shareholders approved the 2000 accounting report and decided the bank's total profit amounting to BGL856,000 to be placed in the Reserves Fund. Shareholders also decided mortgage bonds to be issued for a total nominal value of BGL3MN, while the term-to-maturity to be set to two years. The face value of each bond will be BGL10 and the anual interest paid by the bank - 7.25 per cent.

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