BSTDB will offer its member countries to capitalize bank for EUR 250 mln

The Black Sea Trade and Development Bank (BSTDB, Thessaloniki, Greece) at the next meeting of the Board of Directors in September will offer its member countries to add EUR 250 million to its capital to increase the bank's capabilities and efficiency, BSTDB President Dmitry Pankin has said.

"Such additional capitalization will show the rating agencies that the member countries are ready to help and support the bank," Pankin said at a meeting with journalists in Thessaloniki.

According to him, additional capitalization increases the chances of raising the rating, which has been at the "A-" level for a long time with a positive outlook.

The president of the bank added that with the current capital of the BSTDB, its portfolio of projects of EUR 2.3 billion is also close to the ceiling, which is about EUR 2.6 billion.

Pankin noted that the BSTDB, like any other similar development bank, would be happy to increase capital by a larger amount – EUR 3-4 billion, which would allow it to participate in projects with participation in the capital of companies, however, it understands the difficulties of the member countries with their deficit budgets.

The bank told the agency it will be about increasing the subscribed capital by EUR 700-800 million, while direct investments or additional paid-in capital will amount to about a third – EUR 250 million.

BSTDB is an international organization uniting 11 states of the Black Sea Economic Cooperation organization. The shares of Turkey, Russia and Greece in the capital are 16.5% each, Romania – 14%, Ukraine and Bulgaria – 13.5% each, Azerbaijan – 5%, Albania – 2%, Armenia – 1%, Georgia and Moldova – each 0.5%. The bank aims to promote economic cooperation, trade and cooperation of the countries of the Black Sea region. The bank's charter capital is EUR 3.45 billion, and its long-term credit ratings are "A-" from S&P and "A2" from Moody's.

Source: www.en.interfax.com.ua