Administrative receivership in Metals Banka abolished

- Administrative receivership in Novi Sad-based Metals Banka has been formally abolished - the National Bank of Serbia (NBS) announced today (November 18th, 2009).

According to the announcement, the conditions for abolition of administrative receivership were created following the appointment of the new administration and management of Metals Banka, with the consent given by NBS.

NBS placed Metals Banka into receivership in October 2008 due to poor financial state caused by the liquidity crisis, which was additionally aggravated at the time when the bank was subjected to corrective measures of the central bank.

Metals Banka was additionally capitalized in mid-July through the new issuance of 668,100 stocks at the price of 5,500 RSD per stock, and the Autonomous Province of Vojvodina became the majority owner of the bank with 61.9% of capital, while Insurance company DDOR "Novi Sad" kept 10% of stocks.

That helped the bank cover the losses of 4 billion RSD, which was one of the main reasons for the bank to be placed into administrative receivership.