State to merge Privredna banka Beograd with Banka Postanska Stedionica

Serbia
UniCredit Bank Serbia JSC
Summary: 
The Ministry of Finance will propose to the government that the state owned Banka Postanska Stedionica takes over all insured and uninsured deposits and parts of assets of the majority state-owned Privredna banka Beograd
Thu, 24/10/2013

According to the Ministry of Finance’s press release, the Minister of Finance will propose to the government that the state-owned Banka Postanska Stedionica takes over all insured and uninsured deposits and parts of assets, including cash, required reserves, securities and performing loans, of Privredna Banka Beograd. The difference of liabilities and assets transferred from Privredna banka Beograd to Banka Postanska Stedionica will be covered by highly marketable government securities.

This measure intends to ensure the stability of the financial system, making all depositors of Privredna Banka Beograd clients of Banka Postanska Stedionica as of Monday, 28 October 2013.

Impact on investors: Subject to governmental approval, Privredna Banka Beograd (ISIN RSPBBBE18575) deposits and healthy assets would be taken over by another state-owned bank, Banka Postanska Stedionica on Monday, 28 October 2013.