First International Bank Opens in Montenegro – George Soros’ Economic Development Foundation Among Main Investors

First International Bank Opens in Montenegro – George Soros’ Economic Development Foundation Among Main Investors


BRUSSELS, Belgium and NEW YORK, June 2 /PRNewswire/ — Minister of Finance
Miroslav Ivanisevic of Montenegro and international financier and
philanthropist George Soros announced today at a press conference in Brussels
that a consortium of investors led by Soros Economic Development Foundation
will form Euromarket Banka A.D., the first international bank to be chartered
in the Republic of Montenegro. Euromarket Banka A.D., which is scheduled to
open in July 2000, will be a well-capitalized international bank providing a
full range of international services to both consumers and businesses in

Founding shareholders of Euromarket Banka A.D. are expected to include
Soros Economic Development Foundation — the economic development arm of Open
Society Institute; Deutsche Investitions-und Entwicklungsgesellschaft mbH
(DEG) — the German development bank; SKB Bank — the largest private bank in
Slovenia and Futura Investment Ltd. — a private investment company.
Euromarket’s initial capital will total DM 11 million. Discussions are also
underway with another regional bank which is also expected to participate as a
shareholder and to provide technical assistance.

In his comment on the founding of the bank, President Milo Djukanovic of
Montenegro stated that it represents clear indication of the growing
international investors’ confidence in Montenegro’s economic reforms. He also
expressed his great confidence that Euromarket Banka A.D. would rapidly make a
contribution to the economic development of Montenegro and hoped that this
would be the first of many international banks to locate in Montenegro. He
also expressed his belief that new Montenegrin legislation regulating the
establishment and operation of banks would closely conform to EU models and
would provide a sound framework for the growth in financial services in

Euromarket Banka A.D. will be chartered under banking legislation of the
Republic of Montenegro. The bank’s main office will be located in the capital
Podgorica and at least one initial branch is expected to open on the
Montenegrin coast early next year.

In discussing the formation of Euromarket Banka, George Soros said that it
was his expectation that the bank would receive broad acceptance from
Montenegrin businesses and consumers. He indicated that the strong group of
investors that has been assembled would insure a stable capital base of the
Bank, make depositors confident that their funds were well protected, and
bring about sound banking practices. Soros also expressed the hope that many
businesses and consumers would become the Bank’s clients using its full range
of services. These services are expected to initially include deposit taking,
international payments processing and business equipment financing, and will
later include consumer loans, lending to small and medium sized businesses and
possibly real estate financing.

Soros also announced that Mr. Branimir Pajkovic has been nominated to
serve as Chief Executive Officer of Euromarket Banka A.D. Mr. Pajkovic has
served as a senior executive in several Montenegrin and overseas financial and
commercial institutions. Earlier in his career he also served as Yugoslavia’s
Director at the European Bank for Reconstruction and Development (EBRD) as a
Cabinet Minister in the reformist Yugoslav Federal Government of 1989.
Soros Economic Development Foundation (SEDF), the lead investor in
Euromarket Banka, is a not-for-profit corporation chartered under Section
501(c) (3) of the United States Internal Revenue Code, to develop and
implement economic development projects throughout the world. To date SEDF has
undertaken both equity and debt investments in Albania, Bosnia, Bangladesh,
Bulgaria, Moldova, Macedonia, Romania, Russia and Ukraine.

In Bosnia, SEDF is an investor in Market Banka d.d., the country’s leading
bank, where it operates a small business lending program. SEDF also makes
capital available for small business lending in Bulgaria, Romania and Ukraine.
In Russia, SEDF has re-capitalized a small business lending program together
with the EBRD, and several other investors. In Bangladesh, SEDF structured a
long-term credit to permit Grameen Telecom Ltd., a sister company of Grameen
Bank, to invest in an innovative cellular telephone project to bring telephony
to the rural poor. In Macedonia, Albania and Moldova, SEDF has been an
important player in implementing micro credit projects.

The Open Society Institute is part of the Soros foundations network, a
worldwide network of nonprofit foundations established by philanthropist
George Soros to promote the development of open societies around the world.

SOURCE Soros Economic Development Foundation

Leave a Reply