AUSTRIA BANK TO INVEST EUR15MN IN THE BULGARIAN BANKING SYSTEM
Austria Bank intends to establish a bank in Bulgaria with a capital of EUR15MN. It will be based on the existing for already five years Sofia office of Hypovereinsbank (Bulgaria) whose headquarters are located in Munich. The management team of the new credit institution will include the Director of its Sofia office Ljudmil Gachev and the officials of Austria Bank Helmut Haller and Wolfgang Hepps. The three of them have already submitted their requests at the Bulgarian National Bank (BNB) for certificates to be issued.Till mid-2000 the German Hypovereinsbank and BULBANK were shareholders in Hypovereinsbank (Bulgaria) with stakes of 51% and 49%, respectively. On July 14, 2000, BULBANK sold its shares to the German shareholder which became a sole proprietor of Hypovereinsbank (Bulgaria).Three months after the deal the German credit institution bought Bank Austria and later on made it responsible for all the operations of both institutions on the East European markets. Hypovereinsbank (Bulgaria) was also involved in these engagements carrying out most of the deals through its Sofia branch.