Serbia revokes license of bank tied to ousted ruling party

BELGRADE

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Serbia’s central bank on Oct. 31 revoked the licence of Alta Bank, whose owner reportedly had close ties to former president Aleksandar Vucic’s party, which suffered a heavy loss in recent elections.

Local media reported scenes of customers rushing to branches and cash machines in Serbia and neighboring North Macedonia, where Alta Bank has a subsidiary, to try to withdraw their savings.

Such withdrawals were no longer possible in Serbia and deposits were to be repaid later, according to the central bank.

Alta Bank’s subsidiary in North Macedonia said operations there continued as normal.

The decision to revoke the license came days after parliamentary polls that saw a student movement defeat Vucic’s right-wing SNS nationalist party, ending its 14-year rule in the Balkan nation.

The decision to revoke the licence was taken “to protect the interests of depositors and preserve the stability of the financial system,” the central bank said in a statement.

“The bank’s financial situation has significantly deteriorated in recent times, and there is a risk of a further worsening of its financial position or liquidity,” it said.

According to several local media outlets, the bank is owned and run by Davor Macura, who allegedly has close ties to the SNS.

Prosecutors in charge of organised-crime cases said in a statement they had opened an investigation into Alta Bank’s acivtivities, as well as into officials in the national bank and into capital transfers abroad.

Alta Bank is not among the country’s largest banks, accounting for just three percent of the market.