Bulgaria steps in to acquire minority stake in Fibank

First Investment Bank AD

12/06/2020 09:49

SOFIA, June 12 (Reuters) - State-owned Bulgarian Development
Bank will buy up to 70% of the capital increase by First
Investment Bank (Fibank)  5F4.BB , which is raising funds to
cover a capital shortfall found by the European Central Bank
last year, the finance minister said on Friday.
    The Balkan country's fifth largest lender is seeking to
raise 200 million levs ($116 million) by issuing 40 million new
shares.
    Fibank's capital increase is the last criteria the EU's
poorest member state has to fulfil before it can get approval to
enter the banking union and the two-year obligatory precursor to
the euro zone. Sofia hopes to join both in July.
    
 ($1 = 1.7251 leva)

 (Reporting by Tsvetelia Tsolova; editing by David Evans)
 ((tsvetelia.tsolova@thomsonreuters.com; +359-2-93-99-731;))