Erste could cash in €152 mln in dividends from BCR

The lender’s Surveillance Council decided to recommend to shareholders to distribute dividends worth 40 percent of the 2008 net profit, worth €541 mln, according to International Financial Reporting Standards (IFRS).

The General Shareholders Meeting for the approval of 2008 financial results and distribution of profits will take place on 14 May.

According to the privatization contract, BCR’s majority shareholder must grant dividends of at least 40 percent of the net profit computed based on international standards until such time as the shares are listed on the Bucharest Stock Exchange (BVB). Erste has postponed BCR’s listing plans, due to the crisis, to a time when the market will provide better conditions, although the deadline included in the privatization contract is fall 2009.