Serbian govt becomes majority owner of Privredna Banka after capital injection.

By bne IntelliNews March 7, 2012
The Serbian government has become a majority owner of local lender Privredna Banka, raising its stake in it to 64.8% following a capital injection, news service eKapija reported. According to the central bank's website, the government was the largest single shareholder in Privredna Banka, holding a 19.41% stake prior the capital increase. The lender's shareholders held two meetings in February, deciding to ask for state aid via issuing new shares, eKapija reported. It did not specify the size of the capital injection. A total of 3.2 million shares, equal to 128.9% of the existing equity, were issued on behalf of the government, the report said. This way Privredna Banka would be able to solve its lasting problems linked to shrinking capital adequacy, which was several times pointed out by the central bank. Privredna succeeded in finding interested investors to raise its capital via new share issues several times in 2011 and 2010 but the central bank declined to approve the hikes of the potential investors, eKapija said. According to earlier media reports, Slovenian lender NKBM was among the potential partners for Privredna. NKBM is already present in Serbia, controlling lender Credy Banka.

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