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Foreign Bks To Continue Financing Romanian Branches – IMF

The International Monetary Fund obtained the written agreement of all the nine parent-banks of the main Romanian lenders present at discussions in Vienna Thursday, who committed not to withdraw their capital and to continue to finance Romanian economy.
Foreign Bks To Continue Financing Romanian Branches – IMF
27 mart. 2009, 10:16, English

Previously, sources in Vienna told MEDIAFAX that the IMF had obtained the written agreement of eight parent-banks, out of the total nine present at the Thursday discussions in Vienna and the meeting had been interrupted in expectation of the last one’s official answer.

Representatives of the parent-banks in the four countries of origin, respectively Austria, Italy, France and Greece, engaged to participate in the program aiming to revive Romania’s economy, according to the foreign multilateral support program announced Wednesday, and to keep on financing their local subsidiaries, when needed.

The presidents of Erste Group, Volksbank, Raiffeisen International, Societe Generale, UniCredit, EFG Eurobank, National Bank of Greece, Alpha Bank, Piraeus and the deputy governor of Romania’s central bank BNR, Florin Georgescu, attended the meeting in Vienna.

The nine banks salute the foreign loan agreement agreed between Romania and IMF, considering this deal will consolidate the country’s financial and macroeconomic stability.

Romania and the IMF agreed Wednesday on an economic program supported by a EUR12.95 billion loan under a two-year stand-by agreement. The total value of the financial package that includes a EUR5 billion loan from the European Union, and an EUR1 billion loan from the World Bank is of EUR19.95 billion.

The program will be discussed by IMF’s Executive Board in Washington during the next weeks and the first tranche of the loan, respectively EUR5 billion, will be available immediately after the Board’s approval.