ANKARA - Savings and Deposit Insurance Fund (SDIF) and Halkbank management agreed in principle on merging of Pamukbank with Halkbank, SDIF said on Thursday.
A statement of SDIF noted that the Fund and Halkbank management agreed in principle on merging of Pamukbank, which had been transferred to the SDIF.
The statement added that the Fund and Halkbank management also decided to start technical and strategic efforts on the road to merger.
The Banking Regulation and Supervision Agency (BRSA) announced on June 19, 2002 that SDIF undertook Pamukbank's management and control.
Pamukbank's management and control were transferred to the SDIF in accordance with the third and fourth paragraphs of Article 14 of the Banking Law as it was proved that the bank had not taken the necessary measures under provisions of the banking Law, and it was impossible to strengthen its financial structure even if it had taken those measures. The bank's total commitments had exceeded its total assets, and continuation of its banking services endangered rights of its depositors and stability and reliability of financial system, and it was suffering a 2 billion U.S. dollars of capital deficit as of December 31, 2001.
Pamukbank was founded on April 22, 1955 in southern province of Adana to give loan to cotton producers in southern Cukurova basin.
The bank which joined the Cukurova Holding in 1973 had many branches throughout the country.
Pamukbank's total assets had been 7 billion U.S. dollars at the end of 2000. As of September 30, 2001, Pamukbank's net profit was 46 trillion 250 billion TL, paid capital was 170 trillion TL, total equity capital 870 billion 466 million TL and total assets was 6 quadrillion 618 trillion 801 billion TL.
SDIF Executive Board decided on June 29, 2002 to start the sale process of Pamukbank which had been transferred to the Fund.
(BRC-AÖ) 25.03.2004