AFTER almost 13 years of operation on the Slovak market, the financial group Citi has decided to change the status of Citibank (Slovakia) by merging it with Citibank Europe plc, based in Ireland. In line with the bank's plans, and pending approval by Slovak and Irish regulators, completion of the change is scheduled for January 1, 2009, the SITA newswire wrote.
The local bank will bear a new name: Citibank Europe plc, and will operate as a foreign bank branch in Slovakia. Citibank Europe plc plans to ask Ireland's Supreme Court by December 8 for a decision confirming the legality of the cross-border merger of Citibank Europe plc with the Slovak Citibank, as well as other Citibank units in Hungary and Romania. The assets and liabilities of the merged companies will be transferred to Citibank Europe plc and the three banks will then be cancelled without liquidation and erased from the registers, according to information published by the company.
Providing the merger is approved, Citibank (Slovakia) will henceforth be based abroad. However, since Citi group will continue to be present in Slovakia as a branch of a foreign bank there should be no changes to the affairs of existing client or the services provided.
"The transformation to a branch of a foreign bank will lead to a strengthening of our presence through incorporation into a Europe-wide entity, with a higher balance-sheet total, and with a higher capital base," the Citi group said.