Reuters: Bankruptcy News: Serbian state bank absorbs assets, clients of Nova Agrobanka

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Serbian state bank absorbs assets, clients of Nova Agrobanka Oct 29th 2012, 11:07 Mon Oct 29, 2012 7:07am EDT * Postanska Stedionica to expand assets to 1 bln euros * Nova Agrobanka's clients able to manage savings BELGRADE Oct 29 (Reuters) - Serbia's state-run Postanska Stedionica (PS) bank took over the assets and 260,000 clients of troubled Nova Agrobanka on Monday, seeking to end a scandal that has rocked the country's financial system. The move expands PS's assets to around 1 billion euros ($1.29 billion). Nova Agrobanka was formed as a bridge bank in May after the collapse of Agrobanka, which lost its licence over an unaudited 2011 loss of 29.7 billion dinars ($113.4 million). The state held a 20 percent stake in Agrobanka. In a statement posted on its website, PS said all private and corporate clients of Nova Agrobanka would be allowed to freely manage their assets and savings at all times. "The trust and security of clients has been restored," Veroljub Dugalic, the Secretary General of Serbia's Association of Banks, told state news agency Tanjug. Serbia's new Socialist-led government, which took power in late July, cited the scandal surrounding Agrobanka in its push to oust former Central Bank governor Dejan Soskic, who was eventually replaced by a member of the ruling coalition. Soskic dismissed government accusations of negligence in the collapse of the bank. A number of senior Agrobanka officials have been questioned by police on suspicion of extending loans without adequate insurance. ($1 = 0.7733 euros) (Reporting by Aleksandar Vasovic; Editing by Catherine Evans) Link this Share this Digg this Email Reprints

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