One of the largest banks in Serbia, now under bankruptcy has higher receivables than debts.
One of the largest banks in Serbia is bankrupt. Why?
Researching we get to the information that the bank was one of the largest banks in Southeast Europe. With around 6,000 employees, the bank is owned 140 branches which are unfortunately sold for about 25 million euros.
The bankruptcy procedure is still ongoing and as we found out it would not be completed.
An interesting fact is that this bank at the end of the nineties had around 1.6 billion German marks deposits. This sum of money was the savings that the state nineties declared the old foreign currency savings. After the proclamation of the old foreign currency savings, bank’s management decision to savings returns population. After this program the bank has taken over and created the National Savings Bank in private ownership, which began to settle savings in installments after that was sold to Eurobank.
The bankruptcy procedure is in progress and it takes approximately 14 years.
Government of Serbia
Mismanagement of the Government of Serbia there was a shutdown Beobank, the state has destroyed the local bank in order to open the door to foreign banks.
Government of Serbia considers that the bank its capital directly threatened an economy?
The Bank had capital so great that I can be to destroy the local economy because it was the largest creditor of the companies in Serbia and of these same companies had large debts.
About 50% of companies in Serbia were clients of the bank; unfortunately these same companies that are now bankrupt are debtors to this bank. Companies of which the Bank requires resources of the year 2000, largely operated. But today most of them has gone bankrupt or was privatized.
Is this the reason for the shutdown of such a giant?
This bank was destroyed by the government that destroyed the Serbian economy.
The bank was closed overnight nobody was prosecuted or sacked.
In case of bad bank’s business, the first step of a state is to dismiss the Executive Board and if necessary prosecute, it has not been done.
This irresponsible move of the state, a large number of banks has been or is in bankruptcy, overnight been extinguished banks that were carriers of the whole economy in Serbia.
After 2000, he started the disintegration of Serbian banking until today remained only two banks, Postal Savings banks and Commercial banks.
Date: 11.15.2015 Bankinfobook