BMB repays $13 million debt
Manama, March 18, 2013
Bahrain Middle East Bank (BMB) yesterday announced the full repayment of a $13 million debt obligation - including interest of $1.4 million.
The loan was originally obtained by the bank during 2003/2004 and later rescheduled by the present management as part of its restructuring process in 2010/2011, reported the Gulf Daily News, our sister publication.
The repayment takes total aggregate creditor obligations honoured - post restructuring - to a staggering $43 million.
"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 other, a difficult market environment that has witnessed a global financial meltdown, an European debt crises and unprecedented market volatility that followed," said BMB chief executive Akbar Habib.
"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, he stated
The cost efficiencies are at an 'all-time high', '50pc lesser' on a year on year basis relative to the pre-restructuring period with a combined $20 million cumulative expense savings realised since.
"In addition, in the four year period ended, the bank has also successfully distributed realised proceeds of $20.7 million to its co-investors," said Habib.
"The bank at present is well positioned to scale new heights, and depending on the resources available which would have a direct impact on the depth and breadth of its growth, is well geared to realise its true potential," he added.-TradeArabia News Service