Sale of Komercijalna Bank "in sight"

The sale of Komercijalna Banka (bank), where the government is the biggest shareholder, is in sight and should be completed by 2017.

Source: Tanjug

This has been announced by the head of the National Bank of Serbia department for financial institution monitoring Djordje Jevtic.

"The privatization is in sight. Certain activities to that end are under way. The end of the process is expected by 2017, while keeping in mind the agreement between Serbia and the strategic partners within Komercijalna banka," Jevtic said at a conference on insurance on Wednesday, which was organized by NIN and sponsored by Tanjug.

Komercijalna banka is the leader in Serbia when it comes to foreign currency savings accounts and it is ranked second in terms of its share in the total assets of the banking sector in Serbia.

The bank has recorded profits and growth in the past 5 years significantly above average for Serbia, and it has a market share of 13 percent.

The government is the biggest shareholder of the bank, with 42.59 percent of ownership, followed by the European Bank for Reconstruction and Development, International Financial Corporation, DEG from Germany and Swedfund from Sweden.

During the same conference, Dejan Hadzic, senior adviser at the Ministry of Finance, said that privatization of Dunav Osiguranje, Serbia's largest insurance company, should begin by the end of this year with the selection of a privatization adviser.

"The state intends to privatize Dunav as soon as possible, but it is a process that cannot be ended quickly," Hadzic said.

Nationalizing the predominantly socially-owned Dunav osiguranje would be a pre-requisite for privatizing the largest insurance company in the country to enable the state as the owner to decide on its future, said Djordje Jevtic.

"What is needed is that step in between - Dunav becoming property of the state so that it can decide on its fate," Jevtic said.

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