SIX BANKS TO MANAGE BCC'S MILLIONS
The Board of Directors of the Bank Consolidation Company (BCC) decided to distribute its funds to be managed by five commercial banks and Bulgarian National Bank (BNB). The money in question is USD5MN, BGN20MN and EUR53MN which total size tops BGN135MN. The funds are to be distributed on deposit and payment accounts at BNB, BULBANK, First Investment Bank (FIB), SG EXPRESSBANK, BNP-Paribas (Bulgaria) and Raiffeisenbank (Bulgaria). BCC's Executive Director Nelly Kordovska refused to specify the exact sums which are to be deposited at the different credit institutions. Insiders claim, however, that BCC will leave about EUR35MN on six-month deposits at BNB and the rest funds will be shared among the five commercial banks.The sum of BGN135MN, which the BCC will now spread out in different deposits, is much lower than the huge amounts in US dollars, BG levs and euro which by mid-May, 2001, were kept on BCC's accounts. Denominated in Bulgarian Levs their total amount was supposed to reach BGN800MN. Most of the funds - over BGN780MN, were deposited at BNB, yet they were bringing annual income of 2% to BCC. At end-May, 2001, BCC paid corporate income and municipal taxes amounting to BGN167MN and dividends up to BGN456.7MN. The remaining funds in US dollars, BG levs and euro were about BGN152.3MN. By end-2001 BCC paid USD6MN to the consultants on BULBANK's privatization as well as other smaller amounts and its accounts thinned further.In April, 2002, BCC's BoD announced a competition for service banks and invited in written form all credit institutions with assets over BGN100MN to participate in it. All candidates were classified on both the offered conditions and on their reliability. On July 11 BCC's BoD decided to invest its money in BNB, BULBANK, FIB, SG EXPRESSBANK, BNP-Paribas (Bulgaria) and Raiffeisenbank (Bulgaria) by opening three- to six-month deposits. BCC will collect annual interest between 5% and 7 per cent.