Foreign Banks May Withdraw Money From Romanian Subsidiaries If They Want - Official

Romania’s representative to the International Monetary Fund, Mihai Tanasescu, said Sunday foreign banks’ local subsidiaries may transfer money outside the country should mother banks ask for it.

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If mother banks want to withdraw money from local subsidiaries, they can, Tanasescu pointed out.

Romanian President Traian Băsescu said Wednesday in Brussels that the decision of the European Council regarding capitalization of banks means that all EU member states received guarantees that mother banks' subsidiaries will not face cash inflow problems.

The head of state said mother banks need to make sure their Romanian subsidiaries remain well capitalized.

European Commission President Jose Manuel Barroso said Wednesday after a meeting with Basescu that he agrees the bank recapitalization should not affect cash inflows in Romania.

"We are discussing with the Ministers of Finance in order to make sure that all national banking supervisors work together... The national supervisors will insure that the Euro area parent banks will continue to provide capital support for their Romanian affiliates if needed, as committed during the last Vienna initiative meeting on Romania in March 2011," Barroso told a news conference.

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