Reuters: Bankruptcy News: Serbia to shut down RVB bank, transfer assets, loans - official

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Serbia to shut down RVB bank, transfer assets, loans - official Mar 25th 2013, 17:45 Mon Mar 25, 2013 1:45pm EDT * RVB shutdown scheduled for April 8 * Assets to be transferred to another bank, loans to a fund BELGRADE, March 25 (Reuters) - The Serbian troubled Razvojna Banka Vojvodine (RVB) will cease to exist next month, after it transfers its assets, clients and loans to another bank and loans to a special fund, an official said on Monday. In January, the government of Serbia's northern Vojvodina province which owns 62 percent stake in the bank and Belgrade agreed to transfer RVB's deposits and clients to another bank. Its loans will be deposited to a fund in which Vojvodina will own 78.11 percent, while the central government will control the remainder. The bank's net loss rose to 7.9 billion dinars ($90.3 million) in the third quarter of 2012, up from 163.6 million dinars a year earlier. RVB's capital stood at 11.3 billion dinars in Q3 of 2012, while its assets were at 37.7 billion dinars. "The bank will cease to exist on April 8 ... after the completion of transfer of its capital to another bank on April 6 and 7," Zoran Radoman, Vojvodina'c Secretary for Finance said in a TV broadcast. He did not specify which bank would take over RVB's assets. The closure of RVB also comes two days after Serbian police detained three of its former officials on suspicion of extending loans without adequate insurance. The January agreement envisages the transfer of nearly 110 million euro ($142 million) in insured deposits and close to 100 million euro in uninsured deposits, owned by about 80,000 clients of the RBV. The uninsured deposits will be secured with a 70 million euros in five-year bonds, issued by the provincial government and the central government. This is second Serbian bank that collapsed since the Socialist-nationalist government took over in 2012, after issuing loans without insurance. Last year, police arrested a number of officials of the now-bankrupt Agrobanka, after uncovering an 2011 unaudited loss of 29.7 billion dinars. Serbia's state-run Postanska Stedionica (PS) bank took over its assets and 260,000 clients. ($1 = 0.7694 euros) ($1 = 0.7763 euros) (Reporting by Aleksandar Vasovic; Editing by Ron Askew) Link this Share this Digg this Email Reprints

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