Irish Bank Set to Drop Bulgarian-American Credit Bank Stake

The Irish bank AIB is looking to sell its 49,9% stake in the Bulgarian-American Credit Bank (BACB) due to its depreciation.

The Irish weekly Sunday Business Post quotes sources from AIB saying that it is seeking buyers for the stake.

AIB had paid in 2008 EUR 216 M to get the share in the BACB, but now the asset is worth just EUR 35 M.

AIB has extended a EUR 75 M debt refinancing credit to BACB, which has not been used to the full.

The Bulgarian-American Credit Bank's net profits for the first half of 2010 were a mere EUR 1.9 M, down from EUR 12.1 M for the same period 2009.

Sunday Business Post further reports on a “significant exposure to the Bulgarian property market” on the part of BACB.

AIB had acquired the BACB stake in a bid to invest in high growth markets and in institutions that support SME lending.

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