Barclays Bank's 32 percent stake in Bermuda Commercial Bank.

A statement released yesterday by First Curacao International Bank (FCIB), whose shares are owned by Bermuda resident Mr. John Deuss, said it had entered into an agreement to buy all of Barclays' shares in the island's third bank.

But BCB president the Hon. Clarence Terceira, who initially declined to make a statement, said last night the buy-out was not yet complete.

"We are at the stage of fairly advanced negotiations with the First Curacao International Bank about Barclay's shares,'' he said. "And if the deal is completed, we will then make a formal statement.'' "We have conducted negotiations previously with others and it is premature to make a full statement because negotiations are not complete.'' FCIB representative Mr. Daniel J. Parish, who is presently in the Island, confirmed that closing of the purchase -- planned for early May -- is still subject to Bermuda Monetary Authority approval.

"The BMA has given preliminary approval as I understand it,'' said Mr.

Parish. "But they want to see the final deal put together, but it's still subject to the negotiation of a final management agreement with the bank and FCIB, as well as the negotiation of sale between FCIB and Barclays.'' The bank's statement said the Netherlands Antilles-based bank has "entered into an agreement'' with Barclays Bank to acquire all of its shares, giving it almost one third of the bank's issued stock, with a market value of about $2.85 million, based on the last sale of $6.25 per share on the local exchange.

The statement went on to say the FCIB "anticipates replacing Barclays' management and operation of BCB''.

The Royal Gazette was unable to contact BCB managing director Mr. Richard Francis for comment.

Mr. Deuss, a Dutch national, is the owner of Transworld Oil based in Flatts and has been a resident of the Island for more than 20 years. Last year he successfully established a local company which will build a giant oil pipeline in the former Soviet republic of Kazakhstan. He is also well known as an avid equestrian.

Barclays has been attempting to sell its stake for about two years.

BCB shares were suspended on April 5 pending the closure of a sale although the purchaser was not identified until yesterday.

Should the Curacao bank successfully close the sale, it would probably result in the departure of Mr. Francis, who is an employee of Barclays.

Mr. Francis has successfully engineered a scaling down of the bank, including its almost complete withdrawal from retail banking.

This included reducing the bank's assets and liabilities by more than $100 million to $212 million and $202 million respectively between 1991 and 1992.

The bank's staff was also halved to 46 employees.

In the same period, the bank reduced its income from $36 million to $22 million and expenses from $37.8 million to $20.3 million. The dramatic cuts resulted in the bank achieving a $1.6 million profit after losing $1.8 million a year earlier.