ROSSEXIMBANK AND EIBANK - CONFRONTED OVER CREDIT BANK
Economic and Investment Bank (EIBank) is the third possible candidate-buyer of the bankrupted Credit Bank. In its last issue the BANKER weekly described ROSSEXIMBANK's offer in details. The other candidate-buyer of Credit bank is the investment intermediary Hedger which has been trying to strike a deal for a fourth month in a row, pretending to represent a foreign client.
The curators of Credit Bank will order two consultant firms to prepare assessments of the bank, which will be discussed and will be handed to Judge Svetlin Michaylov who is supposed to approve of one of them. Only then, in mid-summer, will start the negotiations with all candidate-buyers who have signed a draft agreement.
EIBank is specially interested in the bankrupted Credit Bank. In 1998 Vladimir Georgiev and Valeria Antonova, curators of the closed Economic Bank, deposited nearly USD10MN at the then operating Credit Bank. Yet the deposit was liquidated when the bank was announced insolvent on February 1, 1999. Most unpleasant was the fact that Economic Bank was placed among the last in the queue of creditors, standing no chance to have at least part of its money repaid. On June 23, 2000, BRIBANK acquired Economic Bank and was later renamed to EIBank. In the meantime Vladimir Georgiev was appointed CEO of EIBank and was ordered to collect the receivable of the former Economic Bank.
Now EIBank and ROSSEXIMBANK will be confronted on the bankrupted credit institutions market. However, they both have gathered much of experience. EIBank bought the assets of the former Economic Bank and at the end of February, 2001, ROSSEXIMBANK acquired the announced insolvent MINERALBANK.
Mr. Kyulev, chairman of ROSSEXIMBANK, intends to specialize his bank in buysale deals and in firms' liabilities management. Therefore he expressed his interest in the purchase not only of Credit Bank, but also of BALKANBANK and of the Bank for Agricultural Credit. Yet EIBank will not give up Credit Bank that easy.
Financists comment that Credit Bank will be sold for about BGL20MN - the size of its liabilities to firms and individuals. So the buyer will have to pay only BGL17MN, as about BGL3MN are now existing on the curators' accounts. Insiders claim that within a year and a half nearly BGL30MN can be collected from Credit Bank's assets. Which means that ROSSEXIMBANK will not only pay BGL17MN, but will also report a profit of BGL13MN in half a year.