Bulgarian Energy Holding To Select 5 Banks to Service its Activity
The Bulgarian Energy Holding (BEH) has announced a competition for the selection of five banks to service its activities.
Bids will be accepted by January 24, according to a statement published on the website of the company.
BEH informs that it is launching the procedure in order to comply with competition rules under which the net exposition of a contracting authority to a credit or financial institution cannot exceed 25% of the total cash of the contracting authority.
In May 2013, the caretaker government of Prime Minister Marin Raykov adopted a decree stating that state-owned companies must not deposit more than 25% of their free capital with one single bank.
A total of 234 companies were to ensure compliance with the decree by December 4.
However, most of the state-owned energy companies failed to fulfill the requirement within the 6-month deadline, according to dnevnik.bg.
Over the past ten years, a large portion of the capital of Bulgarian state-owned companies was deposited with the Corporate Commercial Bank of Tsvetan Vasilev.
In mid-December 2013, Deputy Prime Minister Daniela Bobeva reported that the rate of concentration of capital of state-owned companies was dropping and one bank contained 22.67% of the deposits by November 30, 2013, down by half compared to the rate in March 2013, at 47.05%.
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