IMF Concludes Regular Mission in Bulgaria, Recommends Restoring VAT to Pre-Pandemic Levels
The International Monetary Fund (IMF) has wrapped up its regular mission in Bulgaria
HOT: » Assessing the Legacy of Bulgaria's "Denkov" Cabinet: Achievements, Failures, and What Comes Next
The shares price of First Investment Bank (FiBank) fell to about BGN 1.80 per share, according to the trading data on the Bulgarian Stock Exchange.
This is lower even than the price (about BGN 2.50) at which the securities were traded at the beginning of the summer, when the state bought an 18.3% stake in the bank for 140 million euros. Lv. arguing that this is the last condition for Bulgaria's admission to the EU Banking Union and the euro area waiting room. In the transaction, the state paid BGN 5 per share, i.e. twice the market price.
Because of suspicions that the deal was unprofitable for the budget, parliament formed a temporary committee to establish the facts and circumstances related to it.
However, it was clear at the hearing from the explanations of the institutions concerned that the price of BGN 5 was even undervalued and the state actually bought the package of shares almost "on promotion".
There were several arguments in favor of this thesis. First, FiBank‘s share price on the stock exchange is not at all an indicator of their value, because the volumes on the Bulgarian stock market are too low.
Secondly, by law, public companies cannot announce a share price below their carrying amount, which for FIB's securities is calculated at BGN 8.87 per piece. That is why the initial official proposal of FIB from December 2019 was for BGN 8 per share. However, when approving the prospectus, the Financial Supervisory Commission intervened twice and a price of BGN 5 was eventually approved. So it turns out that the state has received a serious "discount" from the price.
After the deal with the state was concluded, the stock price gradually began to fall and recently has stayed at levels around BGN 1.80.
In November, due to the negative effects of the Covid-19 pandemic, FIB acquired a rating B from Fitch, which is five levels below the investment class limit and seven levels below the rating of Bulgaria. "This is also the lowest valuation among the Bulgarian banks surveyed by the agency, and the outlook for it is negative," Capital newspaper reported./Mediapool.bg
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
The International Monetary Fund (IMF) has wrapped up its regular mission in Bulgaria
Bulgaria is on track to meet the inflation benchmark required for Eurozone membership by September
LinkedIn, the go-to platform for job seekers worldwide, is considering incorporating gaming elements into its services. In a move aimed at enhancing user engagement
Today, just before 8 a.m., the mortal remains of Bulgarian Patriarch Neophyte were laid out for veneration at Patriarchal Cathedral "St. Alexander Nevsky"
Are you looking for inspiration for your next travels? Or perhaps a journey to the most interesting places you see in your favourite movies?
The Bulgarian Parliament has ratified the Agreement between the Government of the Republic of Bulgaria and the Government of the United States on cooperation regarding the construction of nuclear power at the Kozloduy Nuclear Power Plant
Norwegian Inspiration: Bulgaria's Move Towards Environmentally Friendly Prisons
Nexo Is Suing Bulgaria For Over $3 Billion