Banking Sector
Privatization and Investments
BANKING SECTOR
Total Bank Assets and Liabilities
From the end of October to the end of December 2012, total assets and liabilities of banks amounted to € 8,470.30 million, while the average monthly level amounted to € 2,823.43 million. Total assets and liabilities of banks amounted to € 2,810.10 million at the end-December 2012, recording a decline at the monthly level (0.4%). At the end of October, November and December 2012, in the structure of banks’ assets, net loans accounted for the main share (61.0%), followed by cash and deposits with depository institutions (about 26.5%) (Graphic 1). From the end of October to the end of December, within the banks’ liabilities, deposits accounted for the main share (about 70.0%) and recorded an increase of share in total banks’ liabilities. In addition, borrowings (average around 14.5%) recorded a fall of share, while total banks’ capital (average around 11.5%) recorded an increase of share in total banks’ liabilities (Graphic 1). Graphic 1: The structure of total banks’ assets and banks’ liabilities, in %
Deposits Total deposits amounted to € 5,929.4 million from the end of October to the end of December 2012 and at the average monthly level amounted to € 1,976.5 million. At the end of December 2012, the total deposits amounted to € 1,981.0 million. Observing data from December 2012 and comparing to December 2011, total deposits increased by 9.0%. From the end of October to the end of December 2012, within the deposit maturity structure, the share of time deposits recorded an increase (amounting to around 61.3% of total deposits), while the share of demand deposits recorded a decrease (amounting to around 38.6% of total deposits). In the structure of time deposits, the largest share recorded deposits with maturity from 3 months to 1 year (average about 55.9%) and they recorded a slight increase of their share. Deposits with maturity up to 3 months recorded a fall of their share (18.6%). Observed by sectors, in the deposit structure, deposits of natural persons were still dominant with a share of about 57.3%.
Household deposits
Source: Bulletin of Central Bank of Montenegro, November 2012, December 2012 and January 2013
The total capital of banks amounted to € 857.3 million from October to December 2012, while at the average monthly level amounted to € 285.7 million. At the end of December, the total capital of banks amounted to € 294.0 million, recording a decline at the annual level (3.7%).
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time deposits were dominant with 67.1%. In addition, observing data from November 2012 and comparing to December 2012, time deposits recorded a decrease of their share (12.2%).
Total household deposits amounted to € 3,396.5 million from the end of October to the end of December 2012, and at the average monthly level amounted to € 1,132.2 million. At the end of December, total household deposits amounted to 1,147.1 million and recorded an increase of 1.1% at the monthly level and by 11.0% at the annual level. From the end of October to the end of December 2012, in the maturity structure of household deposits,
Loans From the end of October to the end of December 2012, total loans granted by banks amounted to € 5,588.1 million, which was at the average monthly level € 1,862.7 million. At the end of December, total loans amounted to € 1,862.6 million, thus 4.8% less than in the previous year. The loan-to-deposit ratio1 amounted to 0.95 at the end of October, 0.94 at the end of November and 0.94 at the end of December 2012. In the structure of total loans disbursed, corporate and household loans were dominant by 92.0% in the period from October to December 2012, whereas the remaining referred to banks, other financial institutions, public owned organizations, nonprofitable organizations and others. Interest rates From October to December 2012, the weighted average lending effective interest rate (lending interest rates) amounted to around 9.48%. The weighted average deposit effective interest rate (deposit interest rates) amounted to around 3.24% in the same period. Graphic 2: Interest rates, period-end, in %
Privatization and Investments Open tenders New Public Call for the Company Novi Duvanski Kombinat AD Podgorica Launched The Government of Montenegro has invited the tender process for recapitalization through the construction of the factory and selling shares in the company Novi Duvanski Kombinat AD Podgorica (New Tobacco Plant). The subject of this tender is the granting of rights to build a factory to a mandatory investment program and determined project documentation of the Company with a recapitalization to the amount of the assessed value of the work 9,415,702€, (excluding VAT), and the sale of 7,669,611 shares of the company New Tobacco Plant JSC Podgorica or 100% of the share capital of the company. The deadiline for submission of Tender Offer expired on 7th May 2013 at 12 am (local time). The Tender Committee reserves the right to amend this deadline, if it is necessary. Sixth Tender for Salt Works Announced The Bankruptcy board of Salt works ‘Bajo Sekulić’ has launched the sixth
tender for the sale of the property at an initial price €209 million, ten million lower than at the previous auction. The interested bidders may deliver their bids by May 9, 2013. The initial price of the Salt works property on the first public tender was €257.8 million, but there were no bids delivered either then or the following four times. Ever since January 2012, when the first public auction was held, the interest was shown only by businessmen from Turkey. Privatization of the Container Terminal and General Cargo JSC: Companies to Deliver their Bids The German HHLA, Turkish Global Ports, Singapore Portek and ICTFI from Indonesia are companies that have passed the pre-selection phase in the process of privatization of the Container Terminal and General Cargo (CTGC) and now are invited to submit their bids. The Government has previously decided to privatize CTGC, or to sell 62% of state shares in this company and grant concessions for the use of the Port Bar area in order to develop the port sector and generate additional economic activities. CTGC is the company that has been separated from the Port of
Bar in 2008 and as of October 1, 2009 it has operated independently. The Government of Montenegro and the European Bank for Reconstruction and Development (EBRD) approved the tender documentation for the process of the sale of state shares of the company. All documentation is published on site: http://www. bar-transaction.com/, while access is granted only to companies that in the previous tender phase gain the right to present their offers to this project. The conditions of the purchase and concession contract have been changed. Namely, a Social program has been implemented with assistance of the EBRD and the number of workers optimized.
Closed/canceled tenders Company ‘Sato’ Purchased Hotel ‘Nikšić’ in Sutomore Hotels ‘Onogošt’ in Nikšiću, ‘Teuta’ in Risan, ‘Nikšić’ in Sutomore and Inn in Šavnik were offered for sale for the ninth time. The total initial price was €13.8 million and the deadline for delivering offers was April 16, 2013. At a public auction held on April 19, hotel ‘Nikšić’ in Sutomore was sold for €300.000 over the initial price to the company ‘Sato’, which offered the highest price (€2.3 million). By a Decision of the Commercial Court Podgorica, the Hotel ‘Nikšić’ was closed in October last year. It comprises of 274 beds and it is located on the sea shore. The monies received from the auction will be used to cover €470.000 debt to workers, while other creditors will be paid out in a percentage from the remaining amount. The Bankruptcy
Source: Bulletin of the Central Bank of Montenegro November 2012, December 2012 and January 2013. 1 This ratio represents the relationship between the amount of loans and deposits. In this case loans were below deposits by 5% at the end of October, and by 6% at the end of November and December 2012.
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