Business Review

The shareholders at Volksbank Romania have decided, at the end of 2011, to increase the capital of the bank, in a move that should consolidate its presence in Romania. Thus, Volksbank denies any rumors regarding a possible retreat from the local market.

Ovidiu Posirca

The National Bank of Romania (NBR) decided, yesterday, to cut the key interest rate to 5.75 percent. This decision follows the central bank's decision to lower the rate to 6 percent last November. As a result, starting today, the interest rate on the deposit facility will be cut to 1.75 percent, while the overnight rate will be 9.75 percent.

Ovidiu Posirca

The foreign exchange reserves of the National Bank of Romania (NBR) reached EUR 33.1 billion at end-December 2011, which is an increase of almost EUR 1.5 billion from the previous month.

Ovidiu Posirca

Intesa San Paolo Bank has increased its capital by RON 323 million (EUR 75 million), by issuing new shares, leading to an increase of 65 percent in capital from RON 491 million to RON 814 million. The capital increase left the shareholders percentage unchanged. Intesa Sanpaolo owns 99.6 percent of shares, while Intesa Sanpaolo Holding International 0.39 percent.

Ovidiu Posirca

Marfin Bank reported a net profit of EUR 4.3 million, nine months into 2011, despite increased provisioning for non-performing loans and high investment costs.

Ovidiu Posirca

Henk Paardekooper will become the new president of RBS Bank Romania, following confirmation from the National Bank of Romania (NBR), which is still pending.

Ovidiu Posirca

Austrian Erste Group increased it stake in BCR to 88 percent, following the acquisition of approximately 6 percent stake in the lender against cash and issuance of new shares from SIF Moldova (financial investment company). Last week, Erste Group also paid RON 123.6 million for approximately 1.2 percent stake in BCR from SIF Transilvania. 

Ovidiu Posirca

A consortium of Carpatica Invest and Swiss Capital will act as intermediaries for the secondary public offering (SPO) of 20 percent share package in Tarom, Romania's public airline company, on the Bucharest Stock Exchange (BVB). The package represents 20 percent of Tarom's share capital. This is the first step in the privatization process of Tarom, agreed by the Romanian Government and the IMF.

Ovidiu Posirca

Volksbank Romania will benefit from a capital increase of EUR 200 million at the beginning of 2012, but denies any speculation regarding the closing or selling of the Romanian operations in the short term.

Ovidiu Posirca

The Agricultural Bank of Greece (ATEbank), which owns a 93 percent stake in ATEbank Romania, has decided to dispose of its stake through a public tender, as part of the current privatization program that is taking place in Greece. Deloitte Business Solutions Hadjipavlou Sofianos & Cambianis will act as sole advisor for this procedure.

Ovidiu Posirca