TOKUDA CREDIT EXPRESS BANK WAS GRANTED A LICENCE FOR OPERATIONS ABROAD
The Bulgarian National Bank (BNB) has licensed Tokuda Credit Express Bank to open accounts and letters of credit in foreign credit institutions. The bank was practically granted a licence for operating abroad, for which it had applied almost a year ago. However, this became a fact now, after the financial institution fulfilled all requirements under its memorandum with BNB, signed in July 2000. The document obliged Tokuda Credit Express Bank to calculate 25% provisions on its BGL5,600,000 receivables from Metalsnab Holding, and to increase its capital.
Back in June 2000 the bank's general meeting voted for an increase its equity capital from BGL15,000,000 to BGL20,000,000. That decision, however, was attacked by the companies of the financial institution's former executive director Ms Slavka Ivanova, holding over 11% of the shares in Tokuda Credit Experss Bank. In that way the capital increase was hampered, but the bank's management together with BNB's Vice Governor Emilia Milanova succeeded to find a way out of the situation. On BNB's recommendation Japan's Tokushukai Medical Corporation of doctor Tarao Tokuda (whose subsidiaries own 53% of the bank's capital) poured by April 2001 some BGL5,900,000 into Tokuda Credit Express Bank.
Due to the lawsuits, however, Tokushukai Medical Corporation did not make the deposit as an increase of the bank's capital but in the form of a hybrid instrument, included in its equity capital. The financial injection from Japan allowed the Tokuda Credit Express Bank to cover its losses from previous years, calculate 25% provisions on its BGL5,600,000 receivables from Metalsnab Holding, and finally get a BNB licence for operating abroad.