EIB CLEARED THE ACCOUNT OF DZI
I've ordered the repo deal with the Economic and Investment Bank (EIB) not to be extended and the State Insurance Institute (DZI) has already received its money, said to the Banker weekly Zdravko Dessimirov, DZI Executive Director. According to him the main reason for this decision were the publications in the media on the repo agreement with EIB as well as the speculations that some of the bank's shareholders will join DZI 2000 - the MEBO unit for the privatization of the insurance company
In September 2000 DZI signed a contract with the bank to keep in its account approximately EUR2.35MN for one month, against which it received shares of the Kardjaly Nonferrous Metals Plant and of Katex PLC. On October 26 the bank was supposed to return the money plus the respective interest to DZI and to receive back the shares. By the end of October the repo agreement was extended for another month under the same conditions.
Besides the principal, DZI will receive from EIB interest amounting to BGL45,844. The state insurer will earn 0.95% yield on this two-month deal, or 5.7% annual interest.