EUROBANK SHAREHOLDERS RENOUNCE DIVIDENDS
The measures taken by the Bulgarian National Bank (BNB) to restrict the crediting, valid from the beginning of July, forced the shareholders of some banks to reconsider their decisions concerning the profit distribution. From July 1, banks in Bulgaria cannot add their current profit to the capital unless it is inspected and certified by auditors.If a bank wants to develop its crediting, it has to raise its capital which means to restrict the payment of dividends. That is the conclusion made by the shareholders of EUROBANK who held an extraordinary general meeting on July 14. They voted for cancelling a decision of the general meeting dated March 2004, according to which the bank had to distribute BGN2.7MN of its 2003 profit as dividends. The shareholders agreed with leaving the whole BGN3.45MN profit retained in the bank's net worth. They approved the certified audit report of Deloitte Touche for the first six months of 2004, too. EUROBANK's profit for that period goes slightly beyond BGN2MN. That will allow the bank to add it to its net worth.In order to enable the bank to continue its active crediting policy, the general meeting voted for raising the shareholders' equity by BGN15MN - from BGN11.2MN to BGN26.2MN. The executive directors of the bank reported to the shareholders that in the middle of 2004 the bank's assets amounted to BGN347MN, 46% up compared to the same period a year earlier. The total amount of credits launched as of June 30, 2004 is BGN192MN and, compared to the middle of 2003, it is up by more than 62 per cent.On July 14, the EUROBANK shareholders decided that the Supervisory Board would consist of three instead of five members. Mitko Sabev remained Chairman of the Supervisory Board. He controls 27% of the shares of Petrol Holding. A month ago BNB allowed the holding to own 98% of the shares of the bank. The Euroex Consult legal office controlled by Mitko Sabev remains in the supervision. Ventseslav Dimitrov will be the third member of the board. Petrol AD (more than 90% of which capital is owned by Petrol Holding) and Eurocapital - Bulgaria AD are leaving the Supervisory Board. Eurocapital - Bulgaria's stake in EUROBANK (85.35%) will be transferred to Petrol Holding.At the end of the general meeting Emil Angelov, Chairman of the bank's Management Board, refused to comment on the news about negotiations between Petrol Holding and Piraeus Bank on the sale of EUROBANK. The matter is within the competence of the owners of the Bulgarian bank, Emil Angelov said and refused to discuss it.