NEFTINVESTBANK ALLOWED TO DECREASE ITS CAPITAL
The Deputy Governor of the BNB Emiliya Milanova will permit NEFTINVESTBANK to decrease its capital from BGN47.98MN to BGN16MN. The commercial bank has fulfilled all requirements of Regulation No 2 on Licences and Permissions. Back on July 20 its shareholders voted a decision to decrease the financial institution's capital and a month later demanded BNB's permission. However, the blessing comes only now, as NEFTINVESTBANK had to reduce the amount of some credits it had released in order to conform to the stipulations of the Bank Act. Under its provisions, the loan allocated to a firm or a group of related companies cannot exceed 25% of the credit institution's equity capital. By decreasing its capital NEFTINVESTBANK will free BGN31.98MN, to be distributed among its shareholders. Petrol AD which owns 59% of the credit institution's equity will get BGN18.9MN, and Naftex Bulgaria Holding (owner of 16.78% of the shares) - around BGN8.1MN. Festa Holding AD - the firm of Petya Slavova, Chairperson of the bank's Management Board, will receive more than BGN2.8MN.According to Mitko Subev, Chairman of NEFTINVESTBANK's Supervisory Board and of the BoD Naftex Bulgaria Holding, procedures for changing the ownership in the bank will start after the capital decrease.Especially for the BANKER weekly Mr. Subev announced that the holding managed by him and its subsidiary Petrol would part with their shares in the credit institution. This, however, will be made gradually. We'll sell our stocks to Festa Holding in separate packages after the BGN gives a permission for that deal, Mr. Subev specified.Festa Holding has already filed at the central bank a demand for acquiring 62% of NEFTINVESTBANK's shares. Of course, after the change of ownership there will be some replacements in the credit institution's Superviory Board and Management Board. Mr. Subev confirmed that he would withdraw from the Supervisory Board, and Petya Slavova said she would assume the vacated post. The other members of the Supervisory Board and Management Board will be approved after BNB's permission.As far as the holding managed by Mr. Subev is concerned, it seems that it will say farewell to NEFTINVESTBANK. Petrol AD closes its accounts in the bank's branches and transfers some of them to EUROBANK. This is the credit institution, said to have been sold to structures of Naftex Bulgaria Holding. According to court registers, 85.35% of EUROBANK's capital is presently owned by Eurocapital Bulgaria AD, whose shares are owned by the Slovak fund Istrocapital. However, experts from the Bank Supervision suspect that Naftex Bulgaria Holding has purchased Istrocapital itself, and thus have acquired EUROBANK.