PRIVATISATION
The consultants hired by Sofia city hall to advise it on the sale of its 70 per cent stake in Municipal Bank has priced the stake at 100 million euro, Dnevnik daily reported on July 1, quoting sources close to the deal, who spoke on condition of anonymity. Sofia’s municipal council is expected to vote on the privatisation strategy of the bank at its meeting on July 25, when it would also decide on what price to ask for its stake, Dnevnik said.
INVESTIGATED
Prosecutors have launched an investigation against two judges from the town of Gorna Oryahovitsa, who had impounded shares in DZI Bank in 2007, which temporarily blocked its sale to Greek banking group Eurobank EFG Ergasias. The prosecution found it suspicious that the judges were able to process the claim pressed by shareholders in the bankrupt Trakiabank, whose assets were later taken over by DZI Bank, Dnevnik daily reported on June 30.
MORTGAGES
DSK Bank mortgage loan offers, whether denominated in euro or leva, were the most popular ones with consumers in June, according to data released by website fincity.bg. The website, which targets becoming a one-stop-shop for consumers looking for information on banking products, said it planned to publish the statistics every month, based on the website’s internet traffic data. Post Bank led, in terms of visitors’ interest, in consumer loans.
DEPOSIT GROWTH
The value of deposits in the banking system has almost reached the size of Bulgaria’s gross domestic product (GDP), data from the Bulgarian National Bank showed on June 30. At the end of May, total deposits in Bulgarian banks was 54.6 billion leva, or 96.5 per cent of GDP. The monthly growth rate in May was 1.3 per cent and year-on-year growth was 38.3 per cent.
UBB PROFIT
United Bulgarian Bank (UBB), majority-owned by National Bank of Greece (NBG), has reported a net profit of 185.1 million leva for 2007, chief executive Stilyan Vutev said on June 30. For the fourth consecutive year, NBG decided not to pay out dividends and re-invest the entire profit. UBB is Bulgaria’s third-largest bank by assets, behind UniCredit Bulbank and DSK Bank.
