EBRD increased the capital of Commercial bank to 170 millions eur, possible one step further in capitalization of Dunav insurance

In Belgrade, was signed a contract of further capitalization of Commercial bank, by which European bank for renovation and development (EBRD) became the owner of 25% of the capital of the domestic bank in the value of 70 millions eur.

In the name of the Serbian government, Mladjan Dinkic, minister of financies, signed the contract, and in EBRD's names financial director Curt Greiger, and in the name of Commercial bank the president and the wice president, Ivica Smolic and Predrag Mihajlovic.

After the ceremony of signing the contract, Dinkic said that EBRD paid 2.9 times more than the Commercial bank's capital on the paper, which means that the capital of this domestic bank would increased on around 170 millions eur, and this will make Commercial bank the strongest bank in Serbia.

Dinkic stated that Banka Intesa (ex Delta bank) has a capital of around 127 millions eur, then Raiffeisen bank with 103 millions and Hypo Alpe Adria bank with 68 millions eur of the capital and he added that Serbia will stay majority owner of Commercial bank, directley or indirectley, with around 51% of the bank's capital.

Explaining the reasons why EBRD decided to finish capitalization of Commercial bank, Dinkic stated that this domestic bank has activity of around 914 millions eur, and that it is right behind Raiffeisen bank with something over 1 billion of activity and reminded that Commercial bank has around 480 millions eur of new savings of the citizens.

Commercial bank made in 2005 a profit before taking away of obligatory reserves of around 46 millions eur, which is the biggest showed profit among the banks, precised Dinkic.

He announced that there are negotiations about a credit of EBRD to Commercial bank in amount of 30 millions eur, on 15 years, which will be used to finance residential mortgage credits in Serbia.

Minister of financies announced enterance of the Commercial bank to the market in the region, and next month they will ask licence to work in Bosnia and Herzegovina.

Representatives of EBRD expressed their readiness to finish capitalization of Dunav insurance company, for which is interested International financial corporation (IFC).