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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