----- Original Message ----- From: [EMAIL PROTECTED] To: [EMAIL PROTECTED] Sent: Sunday, January 23, 2005 11:11 PM Subject: [romania-economics] news Romania Aims to Complete Bank Sales
Romania Aims to Complete Bank Sales Plan Is Set to Shed Stakes In Remaining State Firms By '06, Ahead of EU Entry By CRISTI CRETZAN DOW JONES NEWSWIRES January 21, 2005; Page A7 BUCHAREST -- The Romanian government is planning to sell stakes in the country's remaining state-owned commercial banks by 2006 as it prepares for European Union entry in 2007, Prime Minister Calin Popescu Tariceanu said. Mr. Tariceanu in an interview said he expects major interest from foreign banks in the country's largest commercial bank by assets, Banca Comerciala Romana, and savings bank Casa de Economii si Consemnatiuni. "It's obvious that one year ahead of EU accession, the interest of major banks in the Romanian financial market will increase," Mr. Tariceanu said. The sales effectively would place the Romanian banking sector under the control of Western banks. Societe Generale of France owns the country's second-largest bank, Banca Romana Pentru Dezvoltare, and competes for market share with other big names such as Austria's Raiffeisen Zentralbank Oesterreich AG, which bought out Banca Agricola and rebranded it as Raiffeisen Romania, and Dutch banks ABN Amro Holding NV and ING Groep NV, both of which have set up Romanian subsidiaries. After years of state control, growth in Romania's retail-banking sector steadily is gaining momentum. Revenues from integrated banking services, including leasing operations, mortgages and insurance -- on top of basic banking services such as personal bank accounts and credit cards -- are expected to grow in line with the economy, which expanded by about 8% last year. The government is weighing the sale of minority stakes in BCR and CEC through initial public offerings on the Bucharest Stock Exchange ahead of the eventual sale of majority control to a strategic investor, Deputy Prime Minister Adriean Videanu said in a separate interview. However, the government will discuss these plans with its privatization advisers and it still has to decide which bank would go up for sale first. Daiwa Securities Group Inc. is advising the government on the BCR sale, while J.P. Morgan Chase & Co. is the adviser on CEC's privatization. In BCR's case, the IPO also would need approval from the European Bank for Reconstruction and Development and International Finance Corp., which jointly own a 25% stake in BCR. The EBRD and IFC bought their stake last year for $222 million (â171 million) and agreed to sell it back to the government when Romania finds a strategic investor interested in buying a majority stake in BCR. The state owns 37% of BCR, the bank's employees hold 8% and five investment funds each own a 6% stake. BCR has 300 branches and offices. Its assets under management total about â6 billion, accounting for nearly one-third of Romania's banking sector. CEC is Romania's wholly state-owned savings bank -- the only bank in which deposits are fully guaranteed by the state. After privatization, CEC would lose the state guarantee. It has a network of about 1,400 branches and offices, the largest in Romania. At the end of July 2004, CEC assets totaled about â1.1 billion. Germany's HVB AG and Austria's Erste Bank AG both have expressed an interest in buying BCR. Italian bank Unicredito Italiano SpA also is interested, according to people familiar with the situation. Unicredito also might consider bidding for CEC, but BCR remains its primary target, the people said. Austria's Bank Austria Creditanstalt AG, Erste Bank, Raiffeisen Zentralbank Oesterreich and Rabobank Groep of the Netherlands have been interested in CEC, Romanian officials have said. Write to Cristi Cretzan #end ------------------------ Yahoo! Groups Sponsor --------------------~--> DonorsChoose. A simple way to provide underprivileged children resources often lacking in public schools. Fund a student project in NYC/NC today! http://us.click.yahoo.com/EHLuJD/.WnJAA/cUmLAA/RR.olB/TM --------------------------------------------------------------------~-> EuroAtlantic Club: http://www.europe.org.ro/euroatlantic_club/ *** Birou de traduceri autorizate. Oana Gheorghiu - tel/fax: 252.8681 / [EMAIL PROTECTED] Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/romania_eu_list/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
