German Government to Buy Shares in Rostov’s Bank

Published: 31 July 2005 y., Sunday

Center-invest Bank revealed yesterday the name of its new shareholder - Deutsche Investitions- und Entwicklungsgesellschaft (DEG), an investment unit of Kreditanstalt für Wiederaufbau (KfW) banking group. This announcement explains why Deutsche Bundesbank President Ernst Weltek appeared in the small Rostov-on-Don based bank's board.
DEG investment company is 100-percent owned by KfW banking group, whose subscribers are the German Government (80 percent) and governments of the country’s states (20 percent). Center-invest Bank occupies the 118th place among Russian banks by its net worth and ranks 85th in terms of net assets as of April 2005. The bank announced yesterday than an extraordinary general meeting decided to increase the bank’s authorized capital by 31 percent. The bank will issue 14.5 million additional stocks, 3.65 million of which will be bought by the European Bank for Reconstruction and Development (EBRD) that now hold 20.38 percent in the bank. However, the share of the EBRD will remain the same as DEG will acquire the rest 10.85 stocks.

DEG’s intentions now explain why the former head of Deutsche Bundesbank became the member on the bank’s board of directors early June. The press service of Center-invest bank said the first group of financiers from DEG visited the bank mid-January this year to discuss the opening of a credit line for crediting small business and real estate mortgages. An agreement was reached three months later and the German governmental company granted the bank with a five-year credit line to the sum of $7.5 million. DEG’s possible purchase of the bank’s stake had been negotiated ever since.

Šaltinis: kommersant.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Financing the fight against climate change

Commission sets out first finance proposals for Copenhagen pact on climate change. more »

US$ 39.5 Million Loan to Support Small-Scale Family Agriculture in Brazil

The World Bank today approved a US$39.5 million loan for the Rio de Janeiro Sustainable Rural Development Project in southeastern Brazil. more »

WB Grants Additional US$7.8 Million to the Peace and Development Project in Colombia

The World Bank Board of Executive Directors approved today an additional US$7.8 million for the Colombia Peace and Development Project. more »

11 September 2009 - Statistics on payments and securities trading, clearing and settlement – data for 2008

In 2008, the total number of non-cash payments, using all types of instruments, increased by 5% to 78 billion in the EU. more »

Interview with Sharon Bowles - Head of the Economic and Monetary Affairs Committee

Current economic indicators seem to show a cautious recovery in some of the biggest European economies, such as Germany and France. more »

Palapa-D communications satellite now in geostationary orbit

Launch Early Operation Phase (LEOP) has been successfully completed and the Palapa-D communications satellite is now in the nominal geostationary orbit (GEO). more »

Šarūnas Nedzinskas elected to AB DnB NORD Bankas Management Board

The Supervisory Council of AB DnB NORD Bankas on 8 September 2009 elected Šarūnas Nedzinskas as a member of the bank‘s Management Board. more »

Europe's milk crisis: Chair of Agriculture Committee De Castro on the causes

In the last few months farmers across Europe have taken their tractors to the streets to protest at what is being termed the biggest milk crisis for decades. more »

eCall road accident alarm system – European mobile phone companies agree to help.

Mobile telecoms companies have pledged to support the EU’s campaign to equip new cars with a device that would automatically call for help in the event of an accident. more »

Mobility programme promotes entrepreneurship and innovation

Nordic and Baltic countries aim to strengthen cooperation of business and industry stakeholders. more »