Ivo Prokopiev treats DSK Bank to a drink of cold water for €42 mln

Alfa Finance Holding owes €42 mln to DSK Bank, showed an inquiry made by klassa.bg into the Commercial Register. This loan is secured through the now non-working company Danube Industrial Park in Silistra, the concession of which was revoked by the Transport Ministry. The balance amount of the subsidiary is nearly €12 mln (BGN 24.22 mln), while the tangible assets - property and equipment, backing the loan - are only €5.8 mln (BGN 11.72 mln).

It should be noted that even this evaluation is highly overestimated because it was carried out by a licensed assessor in 2007, when home prices were several times higher than they are now. At the same time, a 5 year's amortisation of the equipment is already running, which further reduces the price. Thus, in case of non-payment of the loan, the bank can recover 10% of the allocated amount in the best scenario.

The independent annual audit also reflects the discrepancy between the actual and stated book value of Danube Industrial Park. In a separate paragraph, the auditor wrote that "there is uncertainty which may cause significant doubt about the Company's ability to operate as an operating enterprise."

DSK Bank declined to comment on the case of the unsecured loan, since it is a subject of their relationships with a client. Director of Communication and Coordination Kamelia Velichkova explained for klassa.bg, that the financial institution has sufficient reserves to cover its commercial risks. She declined to comment on whether giving loans with such security is a regular business practice of the bank.

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