GE Sells Interest In Romanian Financial Cos To Garanti Bank

„GE Capital has sold its 26.7% stake in the joint venture to Garanti Bank who becomes the 100% owner of the Romanian businesses comprising of the regulated Garanti Bank and the GE Money branded specialized financial companies,” the two groups said in a joint statement.

Dmitri Stockton, President of GE Capital Global Banking said the group decided to withdraw from the partnership in Romania due to GE’s overall strategy „to increase investment in core industrial businesses including infrastructure and technology, while remaining fully committed to a smaller, more focused GE Capital.”

The GE Money brand includes leasing company Motoractive IFN, consumer loan firm Ralfi IFN and Domenia Credit mortgage lender.

„There will be no change regarding the strategy and vision going forward. We believe that by transferring our strengths in product innovation, client service and technology, we are building a unique and successful banking group in Romania,” said Ergun Ozen, president and chief executive officer of Garanti Bank.

The Romanian operations will all operate under the Garanti brand as of January 2011, the statement says.

In Romania, Garanti Banking Group owns assets worth EUR1.5 billion.

GarantiBank started its activity in Romania in 1998, as the local subsidiary of Dutch-registered GarantiBank International N.V. The bank is fully owned by Turkish group GarantiBank.