Contract on additional capitalization of Komercijalna Banka on December 17th

The Deputy Prime Minister of Serbia, Mlađan Dinkić, said today (December 3, 2009) that the contract on 120m EUR worth of additional capitalization of Komercijalna Banka should be signed on December 17th.

At the press conference that followed the meeting of the Government of Serbia, he said that the Draft contract on additional capitalization anticipated participation of European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Swedish Investment Fund and the Investment Fund of the Government of Germany in that process.

- The Government of Serbia will have three years to follow that additional capitalization in order to keep the current share of 42.6% in Komercijalna Banka - saidDinkić.

As he explained, that amount will also depend on the date of the Government's payment for its share in additional capitalization of Komercijalna Banka since the contract will also anticipate interests.

According to his words, after that, EBRD and other international finance organizations will increase their share in Komercijalna Banka from current 25% to 34.6% of stocks, which will be bought from minor stockholders.

- Serbia will keep its majority share in Komercijalna Banka and majority management, while capital will be significantly increased, which will enable larger investments - saidDinkić.

Komercijalna Banka Belgrade is the second strongest bank in Serbian market with over 900,000 clients and over 1.2m accounts.

According to the data provided by the Belgrade Stock Exchange, the state owns 42.59% of capital of Komercijalna Banka, while indirectly, through the companies in its possession, it owns over 50% of stocks. European Bank for Reconstruction and Development (EBRD) is the owner of 25% of stocks.