February 1 (SeeNews) - Montenegro's government said it plans to repay a 2.25 million euro ($2.58 million) debt of insolvent Invest Banka [MNG:IBMN] owed to the European Investment Bank (EIB).
The government has activated a guarantee on a 2.25 million euro debt of Invest Banka to EIB and will transfer the sum into the liabilities of the bank, it said in a statement on Thursday.
Montenegro's central bank said last month that it decided to revoke the banking licence of Invest Banka and launch bankruptcy proceedings against it after finding that the bank's financial position is negative, its solvency ratio is below one-quarter of the prescribed level and its liabilities exceed its assets.
Montenegro's Deposit Protection Fund (FZD) started the payment of guaranteed deposits to the eligible customers of Invest Banka on Monday.
The central bank placed Atlas Banka [MNG:ATBA] and Invest Banka under its temporary administration in December, citing their poor financial condition, after audit results showed that the capital of the two lenders did not meet the minimum risk requirements.
($ = 0.872159 euro)