Romania Seeks New Deal With Parent Banks – Ctrl Bker

"We plan on continuing the agreement signed in Vienna, most likely with revised terms to allow a gradual lowering of the exposure. This is only natural, as the high point of the crisis is over and the banks have honored their commitment and they should be allowed a higher flexibility to manage their funds," Isarescu told a news conference.

Early 2009, Romania secured a EUR20 billion aid package from the IMF, the European Commission and other international lenders to cushion the effects of the recession.

The parent banks of Romania's largest nine lenders met in Vienna at the time and agreed to keep their overall exposure to the country unchanged by April 2011, while ensuring capital adequacy levels over 10% for their local subsidiaries.

As of July 2010, the parent banks can reduce or increase their exposure to Romania by up to 5% compared to the initial level.

On Sunday, Romanian President Traian Basescu announced the country agreed on a follow-up EUR5 billion deal with the IMF and the EU.

The agreement will be signed for a period of two years and Romania will not access the funds unless need arises, Basescu said.

People familiar with the negotiations told MEDIAFAX late January that the new deal might not include a follow-up agreement with the parent banks, as the banks were maintaining their exposure at sufficiently high levels.

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