SMC increases the capital of Municipal Bank PLC

With 43 votes "for", the Sofia Municipal Council (SMC) decided to increase the capital of Municipal Bank PLC at an emergency meeting on Tuesday.

"The capital of Municipal Bank PLC is now increased from 65% to 75%. With the capital increase, our capital adequacy ratio will be increased, too. I am glad about the decision and I think this is the right approach; this was necessary for the bank, for Sofia Municipality as a majority shareholder and for the citizens of Sofia, as well", said Chairman of the Standing Committee on Finance and Budget at SMC Orlin Alexiev.

The report on the capital increase was submitted by Deputy Mayor for Finance and Economic Activity at Sofia Municipality, Doncho Barbalov and Chairman of the Standing Committee on Finance and Budget, Orlin Alexiev. 43 councillors voted "for" the report, two abstained.

"We had a success in 2011. Last year, we were able to regain the control over the bank, but it appeared that maintaining this control is also very difficult. The need for a capital increase is undeniable and it is of interest for the bank to remain municipal, the municipality to have the right to take decisions", he said before the report was adopted by Sofia Mayor Jordanka Fandakova.

Although during the vote the advisors formed a majority, the opposition sharply criticised the policy of GERB (Citizens for European Development of Bulgaria) on the municipal treasury.

"Municipal Bank PLC in Sofia is once again becoming a feeder of the ruling party," said DSB councillor Atanas Atanassov.

Municipal Bank PLC had become one of those symbols of the city over which the municipality had no control. As a political force, we will not vote against this decision, the municipality should manage the bank, said the chairman of the municipal councillors from BSP Zhelyo Boychev.

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