The Government Companies Authority has launched the process of privatizing the Industrial Development Bank. The bank will be privatized without its banking license and it will be offered to the private sector instead as a platform for the provision, management and collection of credit. "Globes" first reported on the terms of the privatization three weeks ago.
Following the sale, Industrial Development Bank's banking license will be revoked, and it will be prohibited from accepting deposits, although it will be allowed to provide credit. It is believed that the potential buyers will be non-banking entities on the verge of launching credit services, such as insurance companies and investment houses.
The Government Companies Authority published a notice today inviting interested parties locally and overseas to submit requests for information on the acquisition of the bank. Under the proposed framework, the buyer will acquire full ownership of the bank. The state will sell its holdings, while the publicly-held holdings will be transferred to the buyer under the terms of a mutual arrangement between the parties.
The Bank of Israel has determined that Industrial Development Bank's license will expire on August 1, 2008.
Published by Globes [online], Israel business news - www.globes.co.il - on June 17, 2007
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