American investors to save EVEA bank

The Baltic Times, TALLINN
Jan 28, 1999
By Kairi Kurm

The EVEA Pank management did its best to save the bank from bankruptcy by finding an international investor, but it still has to find out whether the plan worked.

The Estonian central bank started bankruptcy proceedings against EVEA last October, and the case was taken to the Tallinn City Court Jan. 21. The jury will give its final verdict on whether the bank will continue working on Feb. 5.

The bank of Estonia claimed that EVEA Pank did not meet the capital adequacy requirements and was unable to meet its obligations.

The bank could be saved by an international investor who would raise EVEA’s share capital.

On the day of the court hearing EVEA Pank reported that it had signed a cooperation memorandum with two U.S. companies, Swiss Credit & Savings Union Inc. and Morgan Nationwide Depository Inc. Under the agreement, the companies agreed to invest $5 million into the bank’s stock capital.

The new investors have to send an application to the bank of Estonia to increase EVEA Pank’s share capital.

Andrus Kuusmann, the central bank’s spokesman, said the bank of Estonia has received no formal documents from EVEA Pank’s new investors, on the basis of which they could decide about the bank’s future.

“I do not see any other possibilities but a bankruptcy,” Kuusmann said.

Margus Tilga, EVEA Pank’s board chairman, said the new investors will apply for a license even if the court declares EVEA Pank bankrupt.

Source: http://www.baltictimes.com/news/articles/4106/

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