THE STATE TO GET HUGE DIVIDENT FROM BCC
On April 6, 2001, the Bank Consolidation Company (BCC) General Assembly made the decision to increase its capital from BGL20.7MN to BGL25.9MN, through apportion of Central Co-operative Bank's (CCB) shares for total nominal value of BGL5.2MN, representing 32.78% of the credit institution capital.
By mid 2001 BCC is expected to sell its BIOCHIM and CCB shares. Much longer will be BCC parting with its DSK Bank stake. The terms for selling it will be specified by the next government, which will have to make a decision on the size of the private stake.
Yet, no matter what next government's decision will be, the terms and conditions of the privatisation contracts signed under Peter Jotev's management, and the assets it will have, will guarantee BCC's existence at least till January 2004, when according to its Statute it should be liquidated.
BCC will melt like snow under the spring sun after paying liabilities to the budget, Sofia Municipality and after distributing dividents. Within the next couple of months they will get BGL624MN from the accounts of the huge BCC.
By the end of 2000 its total assets amounted to BGL855.8MN, while after receiving DSK Bank shares (with total nominal value of BGL17.5MN) in February 2001, its balance sheet value exceeded BGL873.3MN. According to this indicator BCC is ranking among the ten biggest Bulgarian companies, and is for sure among the biggest money depots in the country, as its deposits exceed BGL813.8MN. In terms of this indicator it ranks close after BNB and BULBANK.
BCC major income in 2000 came from the sale of BULBANK, for which it received EUR360MN (BGL704MN), as well as from the sale of HEBROSBANK for USD23.5MN (about BGL47MN). Besides, its position of a major BULBANK shareholder before its privatisation entitled BCC to receive a divident amounting to BGL99.5MN. So last year the state owned BCC got from both banks about BGL851MN.
Having in mind this income, which is known to the financial circles, the reported revenue of BGL666.8MN for 2000 is rather surprising. The explanation of the management was that long-term liabilities of over BGL184MN, included in the balance sheet, had to be deducted from that amount.
BCC 2000 balance sheet also includes short-term liabilities amounting to BGL167.4MN, which have to be repaid till May 2001 as tax on profit. Part of this amount - BGL115.9MN - will go to the budget, while the remaining BGL51.5MN will go to Sofia Municipality.
After paying taxes BCC net profit will amount to BGL456.7MN. The General Assembly voted for its distribution in form of dividents.