The Ivorian government privatises BHCI Bank

Dec 29, 2015

It will sell 55.9 per cent of the bank's capital.

The Ivorian government has launched the privatisation process of
BHCI Bank.

It will sell all its shares (55.9 per cent) in the bank, which specialises in housing finance.

"We had to launch this privatisation process to save the bank, because it is losing a lot of money. But before that, it should become a universal bank," said government spokesman Bruno Koné on December 23rd, quoted by Jeune Afrique.

About 51 per cent of the shares will be transferred to the private sector and the remaining 4.9 per cent is expected to go to the BHCI staff.

This privatisation is part of a plan to restructure the public banking sector, adopted by the Ivorian government in 2014 to improve the performance of seven financial institutions.

"The Ivorian public banking sector has experienced enormous difficulties in guaranteeing a level of activity and optimum profitability. The Council has therefore adopted a strategy which involves resizing the public banking sector, emphasising the need to maintain the public service functions of commercial banks while optimising their operation," according to a statement issued by the Council of Ministers.

The government is looking to limit structural losses of some institutions that have the potential to impact the state budget and to create an efficient banking sector, able to support government policies.

The state has fully privatised Versus Bank in 2015 and carried out the liquidation of the Bank for the financing of agriculture in October.

It also sold its shares (49 percent) in the capital of the Ivorian Society Bank (SBI).ADNFCR-2976-ID-801808969-ADNFCR