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IMF: Parent Bks Pledge To Keep Exposure To Romania

The parent banks of Romania’s top nine lenders have signed last week bilateral agreements to keep exposure to Romania unchanged from March’s level and maintain solvency rates above 10%, the International Monetary Fund said in a statement Monday.
IMF: Parent Bks Pledge To Keep Exposure To Romania
10 aug. 2009, 12:42, English

“Following up on an agreement in March and May this year, the parent banks of the nine largest foreign-owned banks incorporated in Romania have all signed letters committing their respective groups’ overall exposure to Romania and increasing the capital of their bank subsidiary to maintain a 10% capital adequacy ratio throughout Romania’s Economic Program,” the statement noted.

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 Group, EFG Eurobank, National Bank of Greece, Alpha Bank and Piraeus.

A joint team from the IMF and the European Commission arrived in Bucharest on July 28 to Romania’s progress in meeting the terms related to a EUR20 billion IMF-led aid package, including the implementation of the banking agreements.

Banks’ overall exposure to Romania was “broadly observed, with some temporary deviations stemming from specific large transactions around the reporting dates,” the IMF said in its statement.

“Foreign banks’ financial commitment towards Romania was further consolidated and expanded through the club-loan extended by a group of banks to the Romanian government in July.”

The international organization underlined the significance of a continued involvement from lenders for the Romanian economy.