BELGRADE Oct 22 Serbia's finance ministry said
on Tuesday it plans to transfer assets of Privredna Banka
Beograd to state-owned Postanska Stedionica, the
second such takeover this year.
Serbian media reported earlier this month that Privredna
Banka Beograd had a high percentage of non-performing loans.
Serbia's central bank estimates bad debts at about 20
percent of all loans in the country's financial system.
In a statement, the ministry said it would ask the
government to approve the transfer of all insured and
non-insured deposits and some other assets of Privredna Banka
Beograd to Postanska Stedionica.
"The difference between liabilities and assets will be
covered with government bonds," the statement said. "This is
necessary to preserve the stability of the financial system."
Absorbing the bad loans into the state-owned bank will add
to the pressures on Serbia's finances just as the government is
making a fresh attempt to reverse a trend of mounting state
Shares of Privredna Banka Beograd traded at 0.08 euros on
Tuesday. The market capitalisation of the bank is 450,000 euros
($619,800), according to Belgrade stock exchange data.
In April, Postanska Stedionica took over the assets and
liabilities of Razvojna Banka Vojvodine after it collapsed under
the weight of bad loans.
Last year, Postanska Stedionica also took over assets and
260,000 clients of Agrobanka after a 2011 unaudited loss of 29.7
billion dinars was revealed.
($1 = 0.7260 euros)
(Reporting by Ivana Sekularac; Editing by Catherine Evans and