Parent Bks To Ink Bilateral Agreements With Romanian Ctrl Bk In 30 Days

"The obligations agreed Tuesday in Brussels will be approved by the board of each institution in 30 days, then each of them will sign the engagement letters with the central bank. They agreed to keep exposures at the level from the end of March and to continue to support the banks in Romania, including for the maintaining of a solvency rate of over 10%," according to Adrian Cosmescu, deputy general manager of the central bank’s surveillance department.

 

The meeting in Brussels was attended by the representatives of the International Monetary Fund, World Bank, European Bank for Reconstruction and Development, European Commission, and those of the central banks in the countries where the parent banks are headquartered.

 

End March, the IMF representatives obtained the written agreement of nine parent-banks of the main Romanian lenders which engaged not to withdraw their capital and to continue financing the Romanian economy.

 

The banks are Erste Group, Volksbank, Raiffeisen International, Societe Generale, UniCredit, EFG Eurobank, National Bank of Greece, Alpha Bank and Piraeus.

 

Romanian Prime Minister Emil Boc stated Tuesday that the Romanian government would implement tougher measures, like over-taxing the profits obtained by foreign banks in Romania, if they do not keep their financing lines in the country, breaking thus the accord agreed in March in Vienna.

 

Later Tuesday, Boc said that the potential over-taxation of the profits obtained by foreign banks in Romania was mentioned as a sign that the government wants the money to remain in the country, adding the authorities count on the partnership inked with the lenders.