Bloomberg News

Serbian State Officials Do Not Show Up for Agrobanka Meeting

April 19, 2012

Agrobanka AD (AGBN), the unprofitable Serbian bank that was placed in receivership four months ago, failed to name new auditors after government representatives did not show up for a shareholders meeting.

“Shareholders representing 30.4 percent of the bank’s equity could not make any decisions today as no one from the Finance Ministry showed up,” Branislav Bogdanovic, the chairman of AC Broker, a Belgrade-based brokerage representing mainly foreign institutional investors, said in a phone interview today. No one at the Finance Ministry responded to calls from Bloomberg.

The meeting was called by Agrobanka’s administrators for shareholders to appoint PricewaterhouseCoopers offices in Belgrade and Prague to do a new audit of the bank’s 2010 and 2011 financial statements. The bank, in which the government holds a 20 percent stake, had an unaudited 2011 loss of 29.7 billion dinars ($349.4 million).

The Belgrade bourse reported no trade in Agrobanka’s shares today. The share price of 1,042 dinars at yesterday’s close was 70 percent lower than on Dec. 29 when the central bank fired Agrobanka’a management after inspectors discovered its capital didn’t match the risk it had assumed with its business.

To contact the reporter on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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