BMB repays a further $13 million debt obligation

18/03/2013 14:18 AST

Bahrain Middle East Bank today (18 March) announced the full repayment of a $13 million debt obligation inclusive of interest of $1.4 million as originally obtained by the bank during 2003/2004 and later rescheduled by the present management as part of its restructuring process in 2010/2011.

The repayment takes total aggregate credit or obligations honoured post restructuring to $43 million.

Chief Executive Officer and Member of the Board of Directors of BMB Akbar Habib said, "We are very pleased to have been able to successfully honour all creditor obligations, including those deemed complete irrecoverable despite the many challenges, including - amongst others, a difficult market environment that has witnessed a global financial meltdown, an European debt crises and unprecedented market volatility that followed.

"With all prior period residuals now in effect neutralised and come to a close, this marks the successful conclusion to phase I of the bank's restructuring process - forming an integral part of its five year strategic plan.

"The restructuring process that started in 2009 has led the bank into a territory previously unchartered in its three decade old history with a model now multi-dimensional, diverse and primarily in-house driven with financial obligations currently standing at an all-time low and approximately 90 per cent lesser since the commencement of restructuring, and cost efficiencies at an all time high.

"In addition, in the four year period ended, the bank has also successfully distributed realised proceeds of $ 20.7 million to its co-investors. Reflective of all the aforesaid, and other tangible qualitative improvements effected including those from an internal control and risk perspective."

CPI Financial