Podgorica, (MINA-BUSINESS) – Economic analyst Predrag Drecun has said that it would have been a better solution for Atlas Bank if the state had taken part in its capital increase, adding that he hopes that the Central Bank (CBCG) has a risk mitigation strategy.
“I believe that the Atlas Bank’s capital increase by the state would have been a better solution than entering the zone of risks that are now difficult to assess. Some municipalities will have problems, but I hope that the CBCG has a risk mitigation strategy ready,” Drecun told Mina-business agency.
The CBCG Council launched the bankruptcy proceedings for Atlas Bank on Friday. The Central Bank announced that the interim administration had found certain hidden flaws related to unrealistically high valuation of its assets and credit portfolio delays, resulting in additional deterioration of the bank’s business parameters.
Drecun says that it is necessary to be very cautious when estimating what will happen after the bankruptcy.
“The bankruptcy is the end of a company, as its liabilities exceed its assets, meaning that there is no option to continue operating. However, nobody can predict how the bankruptcy will end,” said Drecun.
According to him, the nominated bankruptcy administrator is an experienced banker, and he needs to take a series of measures in cooperation with the Board.
Longer version of article is available on a link MINA ENGLISH SERVIS
