Bulgarian state to take stake in First Investment Bank

First Investment Bank AD

10/06/2020 16:32

SOFIA, June 10 (Reuters) - Bulgaria has acquired rights to
subscribe to new shares the Balkan country's fifth largest
lender, First Investment Bank  5F4.BB , is issuing to help it
cover a capital shortfall found by ECB stress tests last year,
the economy minister said on Wednesday.
    Emil Karanikolov said the state has participated with an
"acceptable portfolio", but declined to say how many shares it
would buy. He said an official statement will be made on Friday.
    Fibank plans to sell 40 million new shares and raise up to
200 million levs ($116.1 million).  urn:newsml:reuters.com:*:nL8N2CV5YF 
    Fibank's capital increase is the last box Bulgaria has to
tick before it can get the nod to enter the European Union's 
banking union and the "waiting room" to join the euro. Sofia
hopes to join both this summer.
    
($1 = 1.7226 leva)

 (Reporting by Tsvetelia Tsolova; Editing by Jan Harvey)
 ((tsvetelia.tsolova@thomsonreuters.com; +359-2-93-99-731;))