Saturday, October 31, 2020

Ukraine: PrivatBank's obligation to pay compensation in relation to Surkis brothers now in limbo

 On October 29, the Court of Appeals of Kyiv suspended consideration of an appeal lodged by PrivatBank against the decision of the Pechersky District Court that required PrivatBank to service the deposits of the companies belonging to the Surkis brothers.

Saturday, April 19, 2014

Week 16 of 2014 – Giveaway info for the week – Russia: Bank offering 5.90% for one-year retail deposit in USD or EUR


As a free sample for clients and potential clients, below is offered summary information on a sample bank in Eastern Europe or Central Asia selected casually from among those offering moderate (not particularly high) interest rates for foreign-currency retail term deposits.




Bank info:

Name:  TUSARBANK (Акционерный коммерческий банк «ТУСАР» (закрытое акционерное общество))
Headquarters:  Moscow, Russia.
Founded:  1994.
Net assets:  RUB* 12.2877 bln (USD 344.3 mln) as of 31 March 2014, ranking in 239th place among 880 banks operating in Russia.

*As of 31 March 2014 the official exchange rate for the ruble was USD 1 = RUB 35.6871

Contact info:
Phone:  (+7) 499-794-7200
Fax:      (+7) 499-794-7360
Telex: 612056 TUSAR RU
E-mail:  tusar@tusar.ru
Web:  www.tusar.ru



Terms for retail term deposits (Срочный вклад) with monthly compounding of interest, effective from 2 April 2014:
USD (min. USD 350, max. USD 1,000,000):  2.25% a.p.r. for 31 days, 4.01% for 91 days, 5.05% for 181 days, 5.60% for 271 days, 5.90% for 366 days.
EUR (min. EUR 250, max. EUR 1,000,000):  2.25% a.p.r. for 31 days, 4.01% for 91 days, 5.05% for 181 days, 5.60% for 271 days, 5.90% for 366 days.
RUB (min. RUB 10,000, max. RUB 30,000,000):  5.50% a.p.r. for 31 days, 9.00% for 91 days, 10.15% for 181 days, 10.76% for 271 days, 11.00% for 366 days.








Saturday, April 12, 2014

Week 15 of 2014 – Giveaway info for the week – Bosnia & Herzegovina: Bank offering 4.40% for 12-month retail deposit in EUR

As a free sample for clients and potential clients, below is offered summary information on a sample bank in Eastern Europe or Central Asia selected casually from among those offering moderate (not particularly high) interest rates for foreign-currency retail term deposits.


  
Bank info:

Name:  Bobar Banka (Бобар банка а.д. Бијељина)
Headquarters:  Bijeljina, Republika Srpska, Bosnia and Herzegovina.
Founded:  1998.
Total assets:  BAM* 371,537,688 (USD 261.8 mln) as of 31 Dec. 2013.  As ranked by net assets, as of 30 Sept. 2013 the bank ranked in 6th place out of 10 banks operating in Republika Srpska.

*The convertible mark of Bosnia and Herzegovina (BAM, Босанско-Херцеговачка конвертибилна марка) has been pegged to the euro at a rate of BAM 1 = EUR 0.51129 since 1 January 2002, in continuance of an earlier peg of the BAM to the Deutsche Mark at BAM 1 = DEM 1.  As of 31 Dec. 2013 the official exchange rate for the mark was USD 1 = BAM 1.419016

Total loans to customers and deposits in other banks:  BAM 212,200,014 (USD 149.5 mln) as of 31 Dec. 2013 before accounting for provisions, BAM 197,040,100 after provisions.  Of the amount before provisions, 65.16% were in Bosnian marks, 11.91% were in Bosnian marks with contractual protection against risk, and 22.93% were in other currencies.
Total deposits from customers and loans from other banks:  BAM 240,090,182 (USD 169.2 mln) as of 31 Dec. 2013, of which 64.56% were in Bosnian marks and 35.44% were in other currencies.
Net profit (loss) for the year 2013:  BAM 1,414,395 (USD 996,750), up from BAM 1,294,204 in 2012.
Number of branches and banking outlets:  6 branches and 43 other units in Republika Srpska and the Federation of Bosnia & Herzegovina as of 18 November 2013.
POS locations:  55 as of 30 Sept. 2013.
Number of ATMs:  5 as of 30 Sept. 2013.
Number of employees:  189 as of 18 November 2013.
Ownership structure:  As of 10 April January 2014 the bank was owned 22.88% by Bobar Autosemberija d.o.o. Bijeljina, 9.27% by Univerzal a.d. Bijeljina, 8.26% by the Republika Srpska public investment fund (Akcijski fond Republike Srpske a.d. Banja Luka), 7.38% by TP Progres a.d. Bijeljina, 6.69% by a custody account at Nova Banka a.d. Banja Luka, 6.60% by Staubli Holzhäuser Vertriebs AG (in Zug, Switzerland; in liquidation), 5.56% by Bobar Group d.o.o. Bijeljina, 5.56% by Holding Drinatrans a.d. Zvornik, 4.95% by the Republika Srpska Restitution Fund (Fond za restitucije Republike Srpske a.d. Banja Luka), 3.63% by Bobar Osiguranje a.d. Bijeljina, and 19.20% by other shareholders.
Data on the bank at the website of the Banja Luka Stock Exchange (BLSE) including contact info, management info, ownership data, as well as company filings, announcements, and financial statements from 2003 onward:
In Serbian (Cyrillic alphabet):  Бобар банка а.д. Бијељина
In Serbian (Latin alphabet):  Bobar banka a.d. Bijeljina
Quarterly/annual data on all banks in Republika Srpska at the website of the Banking Agency of Republika Srpska:
In Serbian:  Публикације
Financial statements at bank’s website:
In Serbian:  Annual and semi-annual financial statements according to domestic accounting standards, 2002-2013:  Finansijski izvještaji
Auditor:  BDO Ltd. (Друштво за консалтинг и ревизију „BDO“ д.о.о. Бања Лука)
Deposit insurance:  The bank has been a member of the Deposit Insurance Agency of Bosnia and Herzegovina since 2004.
Quality:  Since 2004 the bank has had ISO 9001 certification for its management system.  In February 2013 its certification for ISO 9001 : 2008 was renewed by TÜV NORD CERT GmbH.
SWIFT Code:  BATOBA22
YouTube channel:  BobarBanka (3 videos).
Lists of repossessed property for sale:  Stambeni prostori, Poslovni prostori, Zemljišta
Contact info:
Phone:  (+387) 55-233-300
Fax:      (+387) 55-233-302



Terms for retail term deposits (Oročena štednja) effective 15 February 2014:
EUR –  For amounts up to EUR 5,000:  1.00% a.p.r. for 1 month, 2.00% for 3 mos., 3.90% for 6 mos., 4.40% for 12 mos., 4.80% for 13 mos., 5.15% for 24 mos., 5.60% for 36 mos., 6.00% for 60 mos.
BAM –  For amounts up to BAM 10,000:  1.00% a.p.r. for 1 month, 2.00% for 3 mos., 3.90% for 6 mos., 4.40% for 12 mos., 4.80% for 13 mos., 5.15% for 24 mos., 5.60% for 36 mos., 6.00% for 60 mos.
Other currencies:  0.20% a.p.r. for 1 month, 0.50% for 3 mos., 0.70% for 6 mos., 0.90% for 12 mos., 1.00% for 13 mos., 1.20% for 24 mos., 1.70% for 36 mos., 1.90% for 60 mos.







Saturday, March 29, 2014

Week 13 of 2014 – Giveaway info for the week – Georgia: Bank offering 5.00% for 12-month retail deposits in GBP, USD, or EUR, and 4.00% for CHF


As a free sample for clients and potential clients, below is offered summary information on a sample bank in Eastern Europe or Central Asia selected casually from among those offering moderate (not particularly high) interest rates for foreign-currency retail term deposits.




Bank info:

Name:  Bank of Georgia (JSC “Bank of Georgia”) (სსსაქართველოს ბანკი")
Headquarters:  Tbilisi, Georgia.
Founded:  1903.
Total assets:  GEL* 5.3856 bln (USD 3.236 bln) as of 30 Sept. 2013, ranking in 1st place out of 21 banks operating in Georgia.

*As of 30 Sept. 2013 the official exchange rate for the Georgian lari (GEL) was USD 1 = GEL 1.6644

Total loans to customers:  GEL 3.2215 bln (USD 1.936 bln) as of 30 Sept. 2013.
Total deposits:  GEL 2.7188 bln (USD 1.634 bln) as of 30 Sept. 2013, of which 34.37% were current accounts, 15.24% were demand deposits, and 50.39% were time deposits.
Net profit (loss) for 3Q 2013:  GEL 18,374,910 (USD 11.04 mln).
Number of branches:  158 as of the end of 2011.
Number of ATMs:  426 as of the end of 2011.
Number of employees:  7,301 on a consolidated basis as of the end of 2011.
Ownership structure:  As of 30 Sept. 2013 the bank was owned 98.35% by Bank of Georgia Holdings PLC, 1.24% by the Bank of Georgia (Treasury Shares), and 0.41% by other shareholders.  Among ultimate beneficial shareholders of the bank, the largest were Franklin Templeton Investments (based in San Mateo, CA; 7.54%), the Firebird Group of Funds (based in New York; 6.73%), the European Bank for Reconstruction and Development (EBRD; 5.00%), and the International Financial Corporation (a member of the World Bank Group; 5.00%).
Quarterly financial statements for all banks in Georgia at website of the National Bank of Georgia, 2006-2013:
Financial statements at bank’s website:
In English: Audited annual (and for some years semi-annual) financial statements, 2000-2012:  Audited Financial Statements
In English: Quarterly statements submitted to the National Bank of Georgia, 2007-2013:  Reporting to the NBG
Auditor:  Ernst & Young LLC (შპს ,,ერნსტ ენდ იანგი")
Ratings:
Moody’s Investors Service – 27 September 2013:
Local currency deposit rating:  B3 / Not Prime
Long-term foreign currency deposit rating:  B1 / Not Prime
Short-term foreign currency deposit rating:  B1 / Not Prime
Baseline credit assessment (BCA):  ba3
Senior unsecured debt rating:  Ba3
Outlook: Stable
Standard & Poor’s – 16 December 2011:
Long-term counterparty credit rating (issuer credit rating, ICR):  BB-
Short-term counterparty credit rating:  B
Outlook:  Stable
Stand-alone credit profile (SACP):  bb-
Fitch Ratings – 14 June 2013:
Long-term foreign currency issuer default rating (IDR):  BB-
Long-term local currency IDR:  BB-
Outlook:  Stable
Short-term foreign currency IDR:  B
Short-term local currency IDR:  B
Viability rating (VR):  bb-
Support rating:  4
Support rating floor:  B
Senior unsecured debt:  BB-
SWIFT Code:  BAGAGE22
Contact info:
Phone:  (+995) 32-2-444-444
Fax:      (+995) 32-2-444-134
E-mail:  welcome@bog.ge



Terms for retail term deposit (ვადიანი ანაბარი) with payment of interest at end of term:
(Minimum deposit: 500 GBP/USD/EUR/CHF/GEL)
GBP, USD, EUR:  3.00% a.p.r. for 90-179 days, 4.00% for 180-269 days, 4.50% for 270-359 days, 5.00% for 360-539 days.
CHF (rates available from online deposit calculator):  2.00% a.p.r. for 90-179 days, 3.00% for 180-269 days, 3.50% for 270-359 days, 4.00% for 360-539 days.
GEL:  7.00% a.p.r. for 90-179 days, 8.00% for 180-269 days, 8.50% for 270-359 days, 9.00% for 360-539 days.




Term Deposits and Mutual Funds – An examination of fund portfolios in Montenegro


In Montenegro, a small country in former Yugoslavia that became independent in 2006, the parliament in 2011 adopted a Law on Investment Funds (Zakon o investicionim fondovima) that required asset management firms to divide the assets of each of their existing funds into a closed-end fund (zatvoreni investicioni fond) and an open-end fund (otvoreni investicioni fond).

At the time there were six asset management firms operating investment funds in Montenegro, each firm operating a single fund.  Two of the firms – “Trend” and “MIG” – preferred not to divide up their funds’ assets and opted to liquidate their funds (an option whose legality the Montenegro Securities Commission is hotly contesting), but four of the firms divided their funds’ assets between an open-end fund and a closed-end fund.  As a result there are presently 8 investment funds operating in Montenegro: 4 asset management firms each operate one open-end fund and one closed-end fund.  Below are summary data on the 4 firms and the 8 funds that they manage.


“Atlas Mont” Investment Fund Management Company, Inc.

Name in Montenegrin/Serbian:
Društvo za upravljanje (d.z.u.) investicionim fondom “Atlas Mont” a.d. Podgorica
Address:
Ulica Stanka Dragojevića 4, 81000 Podgorica
Date of founding:
Granted the status of “privatization fund” by the Ministry of Finance on 2001-10-31
CEO:
Mirjana Damjanović
Investment manager:
Milena Vučinić
Total capital as of 2014-03-28:
€ 2,210,265.24
Number of shareholders as of 2014-03-28:
7
Largest shareholders as of 2014-03-28:
“Atlas Fin” d.o.o. ............................................................................. 85.96%
Vlado Divac ........................................................................................ 4.15%
Predrag Danilović ................................................................................ 4.15%
IK – Joint Custody Account 1 ........................................................... 3.67%
Dragoslav Andrić ................................................................................ 1.24%
Saša Popović ....................................................................................... 0.83%
Income received in January 2014:
For managing of “Atlas Mont” Closed-End Fund...................... € 12,133.07
For managing of “Atlas Mont” Open-End Fund........................ € 44,616.69
Wage expenses in January 2014:
...................................................................................................... € 9,309.03


“Atlas Mont” Closed-End Fund

Name in Montenegrin/Serbian:
Zatvoreni investicioni fond “Atlas Mont” a.d. Podgorica – u postupku transformacije
ISIN:*
MEATMORA2PG5
Ticker symbol on Montenegroberza:
ATMO
Management fee rate:
0.2500%
Management fee paid in Feb. 2014:
€ 11.837.30
Total assets as of 2014-02-28:
€ 19,819,659.99
Net assets as of 2014-02-28:
€ 19,807,822.69
Share value as of 2014-02-28:
€ 0.0945
Number of shares as of 2014-03-28:
209,509,650
Nominal price per share as of 2014-03-28:
€ 0.33673
Total capital as of 2014-03-28:
€ 70,547,457.45
Number of shareholders as of 2014-03-28:
11,045
Largest shareholders as of 2014-03-28:
IK – Joint Custody Account 1 ............................................................ 14.95%
d.o.o. “Zetagradnja” ............................................................................... 6.16%
Hempton Corp. Ltd., British Virgin Islands .......................................... 4.95%
Ekspres Gradina ..................................................................................... 3.62%
“Atlas Banka” a.d. Podgorica.................................................................. 3.22%
d.z.u. “Atlas Mont” a.d. Podgorica........................................................ 3.16%
V.B. Holding (Cyprus) Limited, Cyprus ............................................... 2.67%
Cosmos Ltd., Panama ............................................................................ 2.61%
Aca Babić, Serbia ................................................................................... 2.38%
Futura Export Import Ltd., Switzerland ................................................ 1.74%

*International Securities Identification Number.  The national numbering agency (NNA) for Montenegro is the Central Depository Agency of Montenegro (“Centralna Depozitarna Agencija” a.d.. Podgorica).

As of 28 February 2014 the fund had € 19.8 mln in total assets, with the following composition:

Category
Amount
Percentage
Stocks (Akcije)
€ 15,680,373.53
79.1152
Bonds (Obveznice)


Other debt securities (Druge dužničke hartije od vrijednosti)


Cash assets at fixed term (Oročena novčana sredstva)


Real estate (Nekretnine)
€ 4,139,241.90
20.8845
Cash assets on demand (Novčana sredstva po viđenju)
€ 44.56
0.0002
Total:
€ 19,819,659.99
100.00

The 79.1152% of total assets held in stocks consisted exclusively of shares in four related companies: “Invest Banka Montenegro” a.d. Podgorica (35.1584%), “Atlas Hotels Group” a.d. Bar (23.9999%), “Jadranski Sajam” a.d. Budva (15.7995%), and a.d.z.u. “Atlas Penzija” Podgorica (4.1568%).

The 20.8845% of total assets held in real estate consisted of land in Golubovci, Petrovac, Podgorica, and commercial property in Sveti Stefan.

The € 44.56 in cash assets on demand consisted of one or more demand deposits.


“Atlas Mont” Open-End Fund

Name in Montenegrin/Serbian:
Otvoreni investicioni fond “Atlas Mont” Podgorica – u postupku transformacije
Management fee rate:
unknown
Management fee paid in Feb. 2014:
unknown
Total assets as of 2014-02-28:
€ 14,985,020.19
Net assets as of 2014-02-28:
€ 14,729,611.18
Share value as of 2014-02-28:
€ 0.09653185
Number of shares as of 2014-02-28:
152,588,101
Nominal price per share as of 2014-02-28:
unknown
Total capital as of 2014-02-28:
unknown
Number of shareholders as of 2014-02-28:
unknown
Largest shareholders as of 2014-02-28:
unknown

As of 28 February 2014 the fund had € 15.0 mln in total assets, with the following composition:

Category
Amount
Percentage
Stocks (Akcije)
€ 6,853,589.05
45.75
Bonds (Obveznice)
€ 40,135.78
0.26
Other debt securities (Druge dužničke hartije od vrijednosti)


Cash assets at fixed term (Oročena novčana sredstva)


Real estate (Nekretnine)


Cash assets on demand (Novčana sredstva po viđenju)
€ 8,091,295.17
53.99
Total:
€ 14,985,020.00
100.00

The 45.75% of total assets held in stocks consisted of shares from 13 companies, most of them not related to the Atlas Group, and all but one of them (“Univerzal Banka” a.d., Serbia) being domestic firms.  Of the 45.75%, more than half (26.34%) was in stock of the related firm “Atlas Banka” a.d. Podgorica, with the next largest investments being in the unrelated firms “Montenegro-Express Group” a.d. Budva (8.10%), “Jugopetrol” a.d. Kotor (3.32%), “Montenegroberza” a.d. Podgorica (the Montenegrin stock exchange, 1.84%), and a.d. “Kontejnerski Terminal i Generalni Tereti” Bar (the container terminal located at Bar, 1.70%).

The 0.26% of total assets held in bonds consisted of Montenegrin government bonds of series OB14 and OB15.

The 53.99% of total assets held in cash assets on demand consisted of one or more demand deposits.


“Euroinvest” Investment Fund Management Company, Inc.

Name in Montenegrin/Serbian:
Društvo za upravljanje (d.z.u.) investicionim fondom “Euroinvest” a.d. Podgorica
Address:
Bulevar Svetog Petra Cetinjskog 78, 81000 Podgorica
Date of founding:
Granted the status of “privatization fund” by the Ministry of Finance on 2001-04-04
CEO:
Boiša Šotra
Investment manager:
Aleksandra Mitrović
Total capital as of 2014-03-28:
€ 178,952.16
Number of shareholders as of 2014-03-28:
9
Largest shareholders as of 2014-03-28:
Kenan Terzić, Bosnia & Herzegovina .................................................. 29.29%
a.d. “Flash” Podgorica .......................................................................... 20.00%
Fadil Ćosibegović ................................................................................. 10.00%
“Ilirika d.d. - Borzno Posredniška Hiša”, Slovenia .............................. 10.00%
HB – Joint Custody Account 3 ............................................................. 8.57%
Azim Bujak, Bosnia & Herzegovina....................................................... 7.88%
Adnan Husić, Bosnia & Herzegovina .................................................... 7.88%
TP “Izbor u stečaju” a.d. Bar ................................................................. 6.43%
Income received in February 2014:
For managing of “Eurofond” Closed-End Fund............................... € 6,667.89
For managing of “Eurofond” Open-End Fund................................. € 3,334.76
Wage expenses in February 2014:
................................................................................................................. € 0.00


“Eurofond” Closed-End Fund

Name in Montenegrin/Serbian:
Zatvoreni investicioni fond “Eurofond” a.d. Podgorica u postupku transformacije
ISIN:
MEEURFRA2PG4
Ticker symbol on Montenegroberza:
EURF
Management fee rate:
unknown
Management fee paid in Feb. 2014:
€ 6,667.89
Total assets as of 2014-02-28:
€ 43,227,503.70
Net assets as of 2014-02-28:
€ 38,226,720.89
Share value as of 2014-02-28:
€ 0.1405
Number of shares as of 2014-03-28:
272,158,950
Nominal price per share as of 2014-03-28:
€ 0.6740
Total capital as of 2014-03-28:
€ 183,435,132.30
Number of shareholders as of 2014-03-28:
16,119
Largest shareholders as of 2014-03-28:
HB – Joint Custody Account 3 ........................................................... 15.51%
Monte Development Corp. ................................................................... 6.51%
d.z.u. “Euroinvest” a.d. Podgorica ......................................................... 5.66%
Roman Drašler, Slovenia ........................................................................ 3.23%
Branislav Radonjić ................................................................................. 3.02%
Veselin Barović ...................................................................................... 2.60%
HP “Fjord” a.d. Kotor ........................................................................... 2.52%
“Comersa” d.o.o. .................................................................................... 1.58%
HB – Joint Custody Account 1 ............................................................. 1.17%
Zveza Bank, Austria .............................................................................. 1.04%

On 19 November 2009 the fund signed a Lombard credit agreement with Bank Alpinum A.G. of Vaduz, Liechtenstein, for € 5,000,000, at an interest rate of 3-month EUR Libor + 1.25% and repayment open.  As of 28 February 2014 the debt stood at € 5,000,782.83.

As of 28 February 2014 the fund had € 43.2 mln in total assets, with the following composition:

Category
Amount
Percentage
Stocks (Akcije) in Montenegro
€ 28,994,461.25
67.07
Stocks (Akcije) in Bosnia and Herzegovina
€ 8,381,842.42
19.39
Bonds (Obveznice)


Other debt securities (Druge dužničke hartije od vrijednosti)


Cash assets at fixed term (Oročena novčana sredstva)


Real estate (Nekretnine)
€ 5,851,200.00
13.54
Cash assets on demand (Novčana sredstva po viđenju)
€ 0.03
0.00
Total:
€ 43,227,503.70
100.00

The 67.07% of total assets held in Montenegrin stocks consisted of shares from 19 companies, with almost half (31.75%) being shares of a.d. “Broadband Montenegro” Podgorica, and only slightly less than that (29.41%) being shares of a.d. “Bajo Sekulić” Ulcinj.

The 19.39% of total assets held in stocks from Bosnia and Herzegovina consisted of shares from “Elektrogrupa” d.d. Jajce (13.42%), “Zadrugar” d.d. Jajce (4.86%), and “Remontmontaža” d.d. Tuzla (1.11%).

As of 28 February 2014 the fund held a 40% or higher share in three companies: a.d. “Bjelasica-Rada” Bijelo Polje (declared bankrupt in 2007), a.d. “Izbor” Bar (declared bankrupt in 2010), and a.d. “Bajo Sekulić” Ulcinj (currently undergoing bankruptcy proceedings).

The 13.54% of total assets held in real estate consisted of six adjacent parcels of land in Orahovac (11.13%), a residential-commercial property in Bečići (1.61%), and a commercial property in Podgorica (0.80%).

The € 0.03 in cash assets on demand consisted neither of a time deposit nor a demand deposit, but instead of “other funds” (presumably in the form of three pennies kept in a drawer in the office).


“Eurofond” Open-End Fund

Name in Montenegrin/Serbian:
Otvoreni investicioni fond “Eurofond” u postupku transformacije
Management fee rate:
unknown
Management fee paid in Feb. 2014:
€ 3,334.76
Total assets as of 2014-02-28:
€ 1,468,053.10
Net assets as of 2014-02-28:
€ 1,444,131.02
Share value as of 2014-02-28:
€ 0.00626815
Number of shares as of 2014-02-28:
230,391,875
Nominal price per share as of 2014-02-28:
unknown
Total capital as of 2014-02-28:
unknown
Number of shareholders as of 2014-02-28:
unknown
Largest shareholders as of 2014-02-28:
unknown

As of 28 February 2014 the fund had € 1.5 mln in total assets, with the following composition:

Category
Amount
Percentage
Stocks (Akcije)
€ 1,309,342.74
89.19
Bonds (Obveznice)


Other debt securities (Druge dužničke hartije od vrijednosti)


Cash assets at fixed term (Oročena novčana sredstva)


Real estate (Nekretnine)


Cash assets on demand (Novčana sredstva po viđenju)


Total cash assets (Ukupna novčana sredstva)
158,710.36
10.81
Total:
€ 1,468,053.10
100.00

Of the 89.19% of total assets held in stocks, more than half (47.32%) was in shares of Hotelska Grupa “Budvanska rivijera” a.d. Budva, with the next largest holding being in shares of the national power transmission utility, “Crnogorski elektroprenosni sistem” a.d. Podgorica (19.00%).

The € 158,710.36 in “Total cash assets” is not listed under either “Cash assets at fixed term” or “Cash assets on demand”, but more information on the nature of this cash is not available.  Because the corresponding sum at the beginning of February was just € 2.88, these funds are presumably related to the 14 February sale by the fund of 40,000 shares of “Budvanska rivijera” for € 185,200.00.


Moneta Investment Fund Management Company, Inc.

Name in Montenegrin/Serbian:
Društvo za upravljanje (d.z.u.) investicionim fondom “Moneta” a.d. Podgorica
Address:
Trg Republike 13, 81000 Podgorica
Date of founding:
2001-07-07
CEO:
Biljana Šofranac
Investment manager:
Biljana Šofranac, Gregor Kopriva
Total capital as of 2014-03-28:
€ 411,078.61
Number of shareholders as of 2014-03-28:
4
Largest shareholders as of 2014-03-28:
HB – Joint Custody Account 3 ........................................................... 40.05%
“Sivent” d.d., Slovenia ......................................................................... 35.20%
CK – Joint Custody Account 1 ........................................................... 24.75%
Income received in February 2014:
For managing of “Moneta” Closed-End Fund................................ € 19,651.80
For managing of “Eurofond” Open-End Fund............................... € 12,707.29
Wage expenses in February 2014:
.......................................................................................................... € 2,293.02


“Moneta” Closed-End Fund

Name in Montenegrin/Serbian:
Zatvoreni investicioni fond “Moneta” a.d. Podgorica u postupku transformacije
ISIN:
MEMONFRA2PG6
Ticker symbol on Montenegroberza:
MONF
Management fee rate:
0.2292%
Management fee paid in Feb. 2014:
€ 19,651.80
Total assets as of 2014-02-28:
€ 17,427,455.33
Net assets as of 2014-02-28:
€ 17,427,455.33
Share value as of 2014-02-28:
€ 0.1140107880
Number of shares as of 2014-03-28:
152,857,950
Nominal price per share as of 2014-03-28:
€ 0.1340
Total capital as of 2014-03-28:
€ 20,475,999.56
Number of shareholders as of 2014-03-28:
9,031
Largest shareholders as of 2014-03-28:
d.z.u. “Moneta” a.d. Podgorica ............................................................ 15.36%
HB – Joint Custody Account 3 ........................................................... 12.06%
CK – Joint Custody Account 1 ........................................................... 11.65%
HB – Joint Custody Account 1 ............................................................. 7.55%
z.i.f. “Invest nova fond” a.d., Bosnia and Herzegovina ......................... 6.46%
Bojana Vinković, Slovenia ...................................................................... 4.20%
NM – Joint Custody Account 6 ............................................................ 3.50%
z.i.f. “Privrednik Invest” a.d., Bosnia and Herzegovina ........................ 1.37%
NM – Joint Custody Account 3 ............................................................ 1.02%
HB – Joint Custody Account 5 ............................................................. 0.53%

As of 28 February 2014 the fund had € 17.4 mln in total assets, with the following composition:

Category
Amount
Percentage
Stocks (Akcije) in Montenegro
€ 8,659,990.50
49.69
Stocks (Akcije) in Slovenia
€ 8,373,924.00
48.05
Bonds (Obveznice)


Other debt securities (Druge dužničke hartije od vrijednosti)


Cash assets at fixed term (Oročena novčana sredstva)


Real estate (Nekretnine) in Serbia
€ 379,543.00
2.18
Cash assets on demand in Montenegro
€ 945.81
0.01
Cash assets on demand in Slovenia
€ 3.79
0.00
Cash assets on demand in Serbia
€ 6,045.02
0.03
Cash assets on demand in Bosnia and Herzegovina
€ 7,003.21
0.04
Total:
€ 17,427,455.33
100.00

The 49.69% of total assets held in Montenegrin stocks consisted entirely of shares of a.d. “Otrantkomerc” Ulcinj.  The fund owned 99.6621% of Otrantkomerc’s stock.

The 48.05% of total assets held in Slovenian stocks consisted entirely of shares in the investment firm “AG” d.d. Ljubljana.  The fund owned 60.6569% of AG’s stock.

The 2.18% of total assets held in real estate in Serbia consisted of a commercial property in Belgrade.

The €945.81 in demand deposits in Montenegro were being held in accounts at “Crnogorska komercijalna banka” a.d. Podgorica (€781.82), at “Prva banka Crne Gore” a.d. Podgorica (€89.59), and at “NLB Montenegrobanka” a.d. Podgorica (€74.40).

The €3.79 in demand deposits in Slovenia was being held in an account at “Factor banka” d.d. Ljublana.

The € 6,045.02 in demand deposits in Serbia was being held in an account at “Hypo Alpe-Adria-Bank” a.d. Beograd.

The € 7,003.21 in Bosnia and Herzegovina was being held in a brokerage account (brokerski račun) at “SEE Investment Solutions” d.o.o. Sarajevo.


“Moneta” Open-End Fund

Name in Montenegrin/Serbian:
Otvoreni investicioni fond “Moneta” u postupku transformacije
Management fee rate:
unknown
Management fee paid in Feb. 2014:
€ 12,707.29
Total assets as of 2014-02-28:
€ 5,610,454.40
Net assets as of 2014-02-28:
€ 5,594,626.80
Share value as of 2014-02-28:
€ 0.06492063
Number of shares as of 2014-02-28:
86,176,411
Nominal price per share as of 2014-02-28:
unknown
Total capital as of 2014-02-28:
unknown
Number of shareholders as of 2014-02-28:
unknown
Largest shareholders as of 2014-02-28:
unknown

As of 28 February 2014 the fund had € 5.6 mln in total assets, with the following composition:

Category
Amount
Percentage
Stocks (Akcije) in Montenegro
€ 2,625,286.29
46.79%
Stocks (Akcije) in Slovenia
€ 1,145,922.00
20.42%
Stocks (Akcije) in USA
€ 105,229.94
1.88%
Stocks (Akcije) in Luxembourg
€ 97,680.00
1.74%
Stocks (Akcije) in Bosnia and Herzegovina
€ 1,349,288.27
24.05%
Bonds (Obveznice) in Slovenia
€ 199,000.00
3.55%
Other debt securities (Druge dužničke hartije od vrijednosti)


Cash assets at fixed term (Oročena novčana sredstva)


Real estate (Nekretnine) in Serbia


Cash assets on demand in Montenegro
€ 88,047.90
1.57%
Total:
€ 5,610,454.40
100.00

The 46.79% of total assets held in Montenegrin stocks consisted of shares in 32 companies.  The largest single holdings were of “Crnogorski elektroprenosni sistem” a.d. Podgorica (24.51% of total assets) and “Jugopetrol” a.d. Kotor (7.53%).  The smallest holdings amounted to €0.00 each in four companies, at least two of which have been declared bankrupt.

The 20.42% of total assets held in Slovenian stocks consisted entirely of shares in the investment firm “AG” d.d. Ljubljana.    The fund owned 4.0665% of AG’s stock.

The 1.88% of total assets held in US stocks consisted of shares in “iShares JP Morgan”, presumably the iShares J.P. Morgan USD Emerging Markets Bond ETF, which as of 27 March 2014 had a 12-month yield of 4.64% (as measured in US dollars).

The 1.74% of total assets held in Luxembourg stocks consisted of shares in Julius Baer Multipartner’s Balkan Tiger Fund / B, which as of 27 March 2014 had a 12-month yield of -2.81% (as measured in euros).

The 24.05% of total assets held in Bosnian stocks consisted of shares in 10 companies.  The largest single holdings were in the investment funds z.i.f. “Invest nova fond” a.d. Bijeljina (9.3707% of total assets) and z.i.f. “Herbos fond” d.d. Mostar (7.2803%).

The 3.55% of total assets held in Slovenian bonds consisted entirely of bonds of the investment firm “AG” d.d. Ljubljana.

The € 88,047.90 in demand deposits in Montenegro was being held in an account at “Crnogorska komercijalna banka” a.d. Podgorica.


Prima Investment Fund Management Company, Inc.

Name in Montenegrin/Serbian:
Društvo za upravljanje (d.z.u.) investicionim fondovima “Prima” a.d. Podgorica
Address:
Bulevar Revolucije 50/5, 81000 Podgorica
Date of founding:
2005-01-31
CEO:
Vitomir Joksimović
Investment manager:
Nikola Jovović, Vitomir Joksimović
Total capital as of 2014-03-28:
€ 125,000.00
Number of shareholders as of 2014-03-28:
1
Largest shareholders as of 2014-03-28:
“Provladex” d.o.o. Podgorica ............................................................. 100.00%
Income received in February 2014:
For managing of “HLT FOND” Closed-End Fund.......................... € 5,123.78
For managing of “HLT FOND” Open-End Fund.......................... € 17,263.75
Wage expenses in February 2014:
unknown


“HLT FOND” Closed-End Fund

Name in Montenegrin/Serbian:
Zatvoreni investicioni fond “HLT FOND” a.d. u postupku transformacije Podgorica
ISIN:
MEHLTARA2PG5
Ticker symbol on Montenegroberza:
HLTA
Management fee rate:
0.2917%
Management fee paid in Feb. 2014:
€ 5,123.78
Total assets as of 2014-02-28:
€ 8,840,036.00
Net assets as of 2014-02-28:
€ 781,929.61
Share value as of 2014-02-28:
0.00160238
Number of shares as of 2014-03-28:
487,979,200
Nominal price per share as of 2014-03-28:
€ 0.1578
Total capital as of 2014-03-28:
€ 76,999,165.13
Number of shareholders as of 2014-03-28:
37,902
Largest shareholders as of 2014-03-28:
Montenegro S.p.A., Italy ..................................................................... 18.29%
“Provladex” d.o.o. Podgorica ................................................................. 3.79%
Damjan Dudić ........................................................................................ 3.58%
z.i.f. “VB fond” a.d., Bosnia and Herzegovina ...................................... 2.34%
f.z.u. “Trend” a.d. Podgorica ................................................................. 2.07%
o.i.f. “Atlas Mont” Podgorica ................................................................ 1.79%
Dafin S.A., Luxembourg ......................................................................... 1.65%
Cattaro Investments S.A., Luxembourg ................................................. 1.42%
Vanja Mugoša ........................................................................................ 0.78%
Samir Oprašić, Bosnia and Herzegovina ................................................ 0.67%

As of 28 February 2014 the fund had € 8.8 mln in total assets (but only 0.8 mln in net assets), with the following composition:

Category
Amount
Percentage
Stocks (Akcije)


Bonds (Obveznice)


Other debt securities (Druge dužničke hartije od vrijednosti)


Cash assets at fixed term (Oročena novčana sredstva)


Real estate (Nekretnine)
€ 8,840,036.00
100.00
Cash assets on demand (Novčana sredstva po viđenju)


Total:
€8,840,036.00
100.00

The 100% of total assets held in real estate consisted of land in Kasarna Morača (Podgorica), Sutorina (Herceg Novi), Škaljari (Kotor), and Zlatica (Podgorica).


“HLT FOND” Open-End Fund

Name in Montenegrin/Serbian:
Otvoreni investicioni fond “HLT FOND” u postupku transformacije Podgorica
Management fee rate:
unknown
Management fee paid in Feb. 2014:
€ 17,263.75
Total assets as of 2014-02-28:
€ 6,540,633.00
Net assets as of 2014-02-28:
€ 6,519,787.57
Share value as of 2014-02-28:
€ 0.01406568
Number of shares as of 2014-02-28:
463,524,582.5
Nominal price per share as of 2014-02-28:
unknown
Total capital as of 2014-02-28:
unknown
Number of shareholders as of 2014-02-28:
unknown
Largest shareholders as of 2014-02-28:
unknown

As of 28 February 2014 the fund had € 6.5 mln in total assets, with the following composition:

Category
Amount
Percentage
Stocks (Akcije) in Montenegro
€ 5,554,423.80
84.92
Stocks (Akcije) in Serbia
€ 96,506.54
1.48
Stocks (Akcije) in Croatia
€ 360,012.27
5.50
Stocks (Akcije) in RS, Bosnia and Herzegovina
€ 388,820.11
5.94
Stocks (Akcije) in FBiH, Bosnia and Herzegovina
€ 6,186.63
0.09
Stocks (Akcije) in USA
€ 98,140.02
1.50
Bonds (Obveznice)


Other debt securities (Druge dužničke hartije od vrijednosti)


Cash assets at fixed term (Oročena novčana sredstva)


Real estate (Nekretnine)


Cash assets on demand and receivables (Novčana sredstva po viđenju I potraživanja)
€ 36,543.63
0.56
Total:
€6,540,633.00
100.00

The 84.92% of total assets held in Montenegrin stocks consisted of shares in 22 companies.  The largest single holdings were of shares in a.d. “Mješovito” Herceg Novi (37.84% of total assets), a.d. za osiguranje “Lovćen” Podgorica (16.20%), and “13 Jul - Plantaže” a.d. Podgorica (12.47%).

Among the assets held in foreign shares, the largest single holdings were of z.i.f. “Aktiva invest fond” a.d. in Bosnia and Herzegovina (3.33% of total assets), “Europlantaže” d.d. in Croatia (2.50%), and z.i.f. “VB fond” a.d. in Bosnia and Herzegovina (2.42%).  The 1.50% of total assets held in US stocks consisted of shares in clothing retailer Aéropostale, Inc. (1.48% of total assets) and in biopharmaceutical firm Affymax, Inc. (0.02%).



The above examination shows that as of 28 February 2014, the 8 investment funds active in Montenegro were holding a total of € 8.4 million in demand deposits, in four different nations, but not a single cent in term deposits.  This is striking, as not only are interest rates on term deposits relatively high in Montenegro, but Montenegro is one of a relative few developed countries worldwide that permit investment funds to place their assets in term deposits in virtually any corner of the world.

Although Montenegro uses the euro as its currency, the country is not a member of the “eurozone” (EMU).  In fact Montenegro is not even (yet) a member of the EU, though its laws and regulations are gradually being reformulated in accordance with those of the EU/EC.  But there are still some differences, and one of them regards the placement of term deposits abroad by investment funds operating in Montenegro.

The restrictions on term deposits for investment funds (UCITS – undertaking for collective investment in transferable securities) in EU-member states were last modified in 2001 (by Directive 2001-108-EC), and presently read as follows:




 [...]

Article 50

1.  The investments of a UCITS shall comprise only one or more of the following:

[...]

 (f) deposits with credit institutions which are repayable on demand or have the right to be withdrawn, and maturing in no more than 12 months, provided that the credit institution has its registered office in a Member State or, if the registered office of the credit institution is situated in a non-Member State, provided that it is subject to prudential rules considered by the UCITS' competent authorities as equivalent to those laid down in Community law, and/or

 […]


In the laws of most EU member states and in the prospectuses of investment funds domiciled in them one sees that the above article has been incorporated verbatim.  (One exception is Italy, where in 2012 the Banca d'Italia in May 2012 issued a directive specifying that the bank must have its headquarters in an EU member state or in a state of the Group of Ten (which adds in Switzerland, the USA, Canada, and Japan). 

As a result, it would not be permissible (without prior approval from the competent authority) for an investment fund (UCITS) in the EU to place a deposit with, for example the largest bank in Australia, National Australia Bank, but it would have been permissible for the fund to place deposits in Bank of Cyprus, the largest commercial bank in Cyprus, the day before depositors there took a haircut (or even the day after, possibly).  Likewise it would be no problem for an EU UCITS to place deposits in any of the banks in Greece, Spain, Slovenia, etc., whose financial statements clearly identify them as no longer constituting “going concerns” but instead as “gone concerns”, as they have already fallen below their capital requirements and should already have been shut down by the national regulators if such regulators were not keeping them open in the hope of obtaining bailout money from Brussels or Frankfurt.

In short, the regulations in EU give carte blanche to investment funds to place deposits in any bank in any EU state, no matter what condition the bank may be in, but deposits outside of the EU require a general or particular judgment on the part of the domestic regulatory authority.

In Europe outside of the EU, the countries in SEE closest to the EU have conformed their laws to the EU regulations, but in some cases are slightly broader.  In Bosnia the law limits deposits by investment funds to banks whose headquarters are in Bosnia, in an EU member state, or in another state that the Bosnian bank regulator judges to have sufficient prudential supervision.  The law in Albania is the same.  In Serbia the law limits deposits by funds to bank whose headquarters are in Serbia, in EU member countries, or in OECD member countries (which brings in Switzerland, the USA, Canada, Japan, Australia, New Zealand, Korea, Mexico, Chile, and Turkey).

In Montenegro, however, a very small country that wants to attract investors, the law is broader:


LAW ON INVESTMENT FUNDS

Article 25

(1)  The assets of an open-end fund may be invested in:

[...]

(4) in deposits with authorized banks in Montenegro or another state, provided that they are subject to supervision and restrictions that are equivalent to the supervision and restrictions established in [Montenegrin] regulations, which mature within a period not exceeding 12 months and which may be withdrawn at any time.


Article 81

(1)  Permitted investments of a closed-end investment fund are:

[...]

(4) in deposits with authorized banks in Montenegro or another state, provided that they are subject to supervision and restrictions that are equivalent to the supervision and restrictions established in [Montenegrin] regulations, which mature within a period not exceeding 12 months and which may be withdrawn at any time.


ZAKON O INVESTICIONIM FONDOVIMA

Član 25

(1) Sredstva otvorenog fonda mogu se ulagati u:

[...]

4) u depozite kod ovlašćenih banaka u Crnoj Gori ili nekoj drugoj državi, pod uslovom da podliježu nadzoru i ograničenjima ekvivalentnom nadzoru i ograničenjima utvrđenim propisima, koji dospijevaju u roku ne dužem od 12 mjeseci i koji se mogu u svakom trenutku razročiti.


Član 81

(1) Dozvoljena ulaganja zatvorenog investicionog fonda su:

[...]

4) u depozite kod ovlašćenih banaka u Crnoj Gori ili nekoj drugoj državi pod uslovom da podliježu nadzoru i ograničenjima ekvivalentnim nadzoru i ograničenjima utvrđenim propisima koji dospijevaju u roku ne dužem od 12 mjeseci i koji se mogu u svakom trenutku razročiti;