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 Additional payments for the depositors of the former Credit Bank of Pristina (CBP)
Following the license revocation of the Credit Bank of Pristina on March 13, 2006, the Receiver rapidly performed two waves of payments to the depositors; the first one up to euro 1000, the second one up to euro 2500.
In total, for these two tranches, the Receiver secured euro 4 426 759, out of which euro 3 989 446 has been paid to the CPB depositors as of June 27, 2006. Some depositors who are entitled to payments under the first two waves have not yet filed a claim. Consequently, an amount of euro 437 313,91 is being reserved for them by the BPK in a special account.
After these two waves of payments, 89,45% of all the CBP depositors have been entirely refunded.
Nevertheless as of June 29, 2006, there still remain a number of depositors who have not been paid back in full since the amount of their deposits was higher than euro 3 500.
The Receiver has started to make additional payments that will cover partially the remaining depositors.
BPK and the Receiver emphasize that the amount of the remaining payments will depend strictly on the capacity, or willingness, of those who borrowed money from the former Credit Bank to pay back their loans. Indeed, when BPK revoked Credit Bank’s license, and dismissed its Board and Managers, it was because a large part of the borrowers were not paying back the loans they had been granted. In fact, some of these borrowers are former Board Members or shareholders. More, it is BPK’s observation that a number of credit decisions were not taken on the basis of proper financial analysis and good procedures.
Consequently, BPK has referred to the Prosecutor information on possible violations of laws and regulations.
Based on the present expectations of loan recoveries, the Receiver foresees a good possibility to refund the remaining depositors up to 70% of their deposits during the course of the Receivership. Quicker payments, at a higher payment rate (above 70%), and even full payment could be achieved if borrowers pay back all their loans in full.
As the Receiver collects sufficient funds, the repayment process will be performed in several waves in order to cover 70% of the deposits, with a repayment ceiling that amounts to euro 20 000. The first of these payments, which will amount to euro 1 700 000, has already begun.
Once all the remaining account holders have received up to euro 20 000, the Receiver will cover progressively, on a pro rata basis, all depositors up to 70% of their deposits.
When all depositors are paid up to 70%, additional payments could be performed by the Receiver, on a pro rata basis, according to the amount of loans collected. |
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