Government adopts draft amendments to contract with Komercijalna Banka shareholders

The Serbian government adopted Monday (April 22nd) a Draft Agreement on amendments to a contract between the Republic of Serbia and minor shareholders of Komercijalna Banka - the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), Germany's DEG, and Sweden's Swedfund, related to Komercijalna Banka.

The government has authorized Finance and Economy Minister Mladjan Dinkic to sign the agreement on behalf of the government, as a representative of the Republic of Serbia, it was announced on the Serbian government's website.

This technical annex, as people at the Ministry of Finance and Economy called it in a statement to Tanjug news agency, makes it possible for minor shareholders of Komercijalna Banka to define a strategy for managing their ownership stakes in the bank in the following period.

The EBRD became a minor shareholder of Komercijalna Banka in 2006, after signing an agreement with the state to acquire a 25-percent stake in this Serbian bank.

Another recapitalization was agreed upon in late 2009, when the EBRD, the IFC, DEG and Swedfund invested EUR 120 million in the bank, whereas the state retained the right to follow that investment and remain a majority owner by the end of 2012.

The government recapitalized Komercijalna Banka in late October 2012 by purchasing EUR 100 million worth of shares, thus remaining a majority owner with a 42-percent stake in the bank.