Bulgarian Holding Buys the Second Largest Bank in Moldova

Business | January 23, 2019, Wednesday // 15:22| Views: | Comments: 0
Bulgaria: Bulgarian Holding Buys the Second Largest Bank in Moldova

The Bulgarian trust company Doverie United Holding has been authorized by Moldovan authorities to acquire more than half of  second largest bank in the country - Moldindconbank, Reuters reports.

The company will have a 64% stake in the financial institution. After the deal, the bank will become the third largest financial institution in Moldova, sold to a foreign investor. This is part of the enforced strategy to "clear" the banking system in the country, demanded by the International Monetary Fund (IMF) and other creditors. These actions came after a $ 1 billion scandal that shook the Moldovan economy.

The deal with Doverie United Holding will help the authorities in Chisinau to meet the conditions in the IMF program, which includes ensuring greater transparency regarding the ownership of banks. According to Reuters, the Central Bank of Moldova has indicated the potential investor's intention as an opportunity for long-term development of Moldindconbank, including increasing the competitiveness and quality of its services to customers. This is not the first interest of Doverie United Holding in the Moldovan market. In 2017 the company took steps to acquire more than 50% of the capital of another bank in the country - B.C. Victoriabank. Later, the company gave up the deal. Last October an agreement was also concluded as part of the largest financial institution in the country. A consortium led by the EBRD bought 41% of Agroindbank's shares.

Business » Be a reporter: Write and send your article
Expats.bg All Are Welcome! Join Now!
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria