AIK, Erste, Societe Generale interested in Development Bank of Vojvodina?

According to the daily Blic, Erste Bank, AIK and Societe Generale are interested in the Development Bank of Vojvodina (Razvojna Banka Vojvodine). However, the destiny of this bank, whose uncollectible receivables account for 75 percent of all receivables, will mainly depend on the political agreement, primarily between Mladjan Dinkic and Bojan Pajtic.

Bojan Pajtic, prime minister of Vojvodina, anounces that the problem of the Development Bank of Vojvodina will be solved with the issue of bonds worth RSD 15 billion, that is, EUR 150 million. The maturity period of these securities would be 30 years. On the other hand, Serbian Finance Minister Dinkic believes that recapitalization opposes the position of the Serbian government, especially considering that such move is inopportune in the bank that has 75 percent of non-performing loans.

The Ministry of Finance has even recommended provincial authorities to transfer all deposits in the Development Bank of Vojvodina, both insured deposits worth EUR 140 million and uninsured ones worth EUR 100 million, to one of the banks that would assume these deposits. There are several domestic and foreign banks interested in this transfer, among which are AIK, Erste and Societe Generale, Blic reports.

The Serbian government has even offered the provincial government to intervene for uninsured deposits by issuing additional batch of bonds worth EUR 100 million - a half of which would be contributed by the state and half by the province.