EUROBANK EFG becomes full owner of NACIONALNA ŠTEDIONICA BANKA | Eurobank
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EUROBANK EFG becomes full owner of NACIONALNA ŠTEDIONICA BANKA

Eurobank EFG has become the 100% share owner of Nacionalna štedionica Banka, following the signing of an Agreement with the Serbian Government to acquire the remaining 37.7% of the shares of Nacionalna štedionica – banka (NSB) held by the Republic of Serbia.  Mr. Mladjan Dinkic, Minister of Finance of the Serbian Republic, and Mr. Nicholas Nanopoulos, Chief Executive Officer of the Athens-based Eurobank EFG group, signed the Agreement today at the Government Building in Belgrade. It is noted that in September 2005, Eurobank EFG had successfully acquired a 52.5% stake in NSB through a public take-Over-Bid process (which then allowed it to become owner of 62.3% in NSB).

The signing of today’s agreement that transfers the shareholding and control of Nacionalna štedionica – banka to Eurobank EFG group paves the way for the merger of NSB with EFG Eurobank A.D. Beograd, to create one of the largest and most innovative banks in Serbia that will offer comprehensive service to Serbian businesses and individuals on a national scale.  The new bank will focus on retail and corporate banking activities for small-, medium- and large-sized companies. 

Following the signing of the agreement, the Serbian Minister of Finance Mr. Mladjan Dinkic and Ambassador of Greece Mr. Christos Panagopoulos addressed the audience on behalf of their governments and welcomed the agreement as further evidence of the excellent relations between the two countries. For his part, the Chief Executive Officer of Eurobank EFG group, Mr. Nicholas Nanopoulos, commented:

Our equity investment in Serbia currently exceeds € 130 million and that does not include direct lending operations to Serbian institutions.  It reflects our continuing confidence in the Serbian economy’s future outlook and prospects.  We are looking to integrate Nacionalna štedionica Bankaand EFG Eurobank A.D. Beograd into one strong and dynamic organization.  The new bank that will be established – subject to regulatory approvals of the merger – will control about 100 branches, which is one of the largest banking networks in the country, and will employ approximately 1,400 people.  We intend to further increase the size of our network and strengthen the capital of the bank as required, thus creating opportunities for all our personnel who will play a key role in the success of this venture”.

Based on end-2005 data, the new bank that will be created following the legal merger will command combined Total Assets of € 276 million, Deposits of € 189 million, Loans of € 122 million and Shareholders’ Funds of € 54 million.

On the occasion of this additional investment in the Serbian market, Eurobank EFG also announced its intention to make a significant donation to the country in the areas of Health, Education and the protection of the Environment.  The above initiative is worth € 3 million and the amount will be disbursed over a 2-yearperiod.  From this amount, € 1m has already been earmarked for the Clinical Center of Serbia to help it purchase the equipment needed to set up the new “BelgradeNational Center for Positron Emission Tomography, a project of nation-wide importance in the field of nuclear medicine.

To that same end, EFG Eurobank A.D. Beograd has also signed an agreement to extend a loan of € 3m on favorable terms to the same organization.

 

 

Photo:

Ambassador of Greece Mr. Christos Panagopoulos,

Chief Executive Officer of the Athens-based Eurobank EFG group Mr. Nicholas Nanopoulos with the Minister of Finance of the Serbian Republic Mr. Mladjan Dinkic