Minister of Finance Diana Dragutinovic and CEO of the Nova Kreditna Banka Maribor (Nova KBM) Matjaz Kovacic signed an Agreement on recapitalisation of Credy Banka Kragujevac.

The recapitalisation is worth about €10 million, making the Slovenian bank the owner of 55.1% of the shares previously owned by the Serbian government.

Dragutinovic said that the recapitalisation is a direct investment in the amount of €10 million this year.

A new investment of more than €30 million in Credy Banka has been announced in the next five years.

This investment is significant not only for the bank, but for the whole of Serbia and the region, especially because it comes at a time of financial crisis, the Minister said.

After the recapitalisation, Serbia will be owner of 24.8% of Credy Banka’s capital. It will be possible for the state to undertake recapitalisation during the coming period to retain its existing share in the capital.

Nova KBM’s entry into the Serbian market is an important step forward in the bank’s expansion in South East Europe, Kovacic said.

This venture does not pose a risk for Nova KBM and this kind of cooperation is extremely important for the Slovenian economy as 1,400 Slovenian companies are working in Serbia, he said.

The presence of a Slovenian bank on the Serbian market will help strengthen ties between the two countries, he said.

The Serbian market is one of the most forward looking financial markets in South East Europe and the Serbian banking system has great potential for development, he stressed.