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.
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