ZAGREB, March 29 (Hina) - Croatian National Bank (HNB) governor Zeljko Rohatinski said on Friday that an urgent sale of Rijecka Banka was no longer necessary given that depositors claiming back their deposits are no longer besieging
the bank.
ZAGREB, March 29 (Hina) - Croatian National Bank (HNB) governor
Zeljko Rohatinski said on Friday that an urgent sale of Rijecka
Banka was no longer necessary given that depositors claiming back
their deposits are no longer besieging the bank. #L#
The bank was recently swamped by depositors who wanted to withdraw
their savings deposits following a major embezzlement case in the
bank. The prevailing opinion at the time was that the bank should be
sold as soon as possible to provide additional security for
clients.
However, now that the pressure of clients has abated, the new
management has been appointed and losses are being estimated,
conditions have been met to sell 85 percent of bank shares in a
calmer manner and at a higher price, Rohatinski said. The decision
on the sale will be made by the State Agency for the Insurance of
Savings Deposits and Bank Rehabilitation (DAB), he added.
Because it does not have all the elements which affect the final
price, the HNB cannot take over the obligation of informing
potential buyers of the amount of the loss or the bank's capital and
the necessary recapitalisation funds. That is why the HNB has
forwarded its information to the DAB and authorised it for contact
with potential buyers.
An agreement has been reached to define all relevant elements of a
public bid which the DAB will announce for Rijecka Banka. This
includes the recapitalisation needs established so far, important
elements being that the capital adequacy amounts to 10 percent and
more and that the loan exposure does not exceed the maximum amount.
Given that the bank's loss has been estimated at 98 million dollars
so far, the bank will have to be recapitalised with around 70
million euros, the HNB governor said. According to previous
estimates, the necessary recapitalisation funds amounted to 40-60
million euros.
The second element is the price of shares and the third is the risk
the buyer accepts in case the eventual loss is higher than has been
established so far.
On March 22 the DAB management invited eight interested parties -
seven banks and a fund - to submit binding offers for the purchase of
Rijecka Banka by noon on Wednesday, April 3.
The interested parties are HVB, Hypo Alpe Adria Bank, Commercial
Bank Zagreb, Raiffeisen Bank, Erste&Steiermaerkische Bank,
Volksbank, KBC, and Charlemagne Capital fund.
(hina) rml