Five international lenders eye Serbia's Razvojna Banka Vojvodine.

By bne IntelliNews January 21, 2013
Societe Generale, UniCredit, Sberbank, Credit Agricole and local AIK Banka are interested in acquiring the assets and deposits of troubled Serbian lender Razvojna Banka Vojvodine (RBV), daily Blic reported, quoting unofficial information. According to the report, the five lenders are currently studying the financial statements of RBV, while Erste Bank decided to quit its initial intention to also participate in the acquisition and filed a letter of intent for buying Hypo Bank's Serbian unit instead. Slavko Saric, the head of Novi Sad-based Erste Bank, said that his bank decided to give up its RBV plans after the Serbian government announced it will sell RBV's branch network together with the deposits. The government and the government of the Vojvodina province, where RBV is based, decided at end-2012 to solve the bank's problems via transferring its assets and deposits to a healthier lender and issuing a joint EUR 70mn bond to cover its unsecured deposits. Under the deal, RBV's secured deposits worth EUR 110mn and its unsecured ones of almost EUR 100mn belonging to around 80,000 deposit-holders will be transferred to the bank, which offers the most favourable terms. At the same time, a Vojvodina Development Fund is being established, which will take over part of RBV assets - its credit portfolio and fixed assets. RBV's pre-tax loss widened to RSD 8bn (EUR 70.3mn) in the first nine months of 2012 from only RSD 164mn a year earlier as loan-loss provisions doubled to RSD 1.2bn and other operating expenses jumped more than ten times to RSD 7.3bn.

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