Banca Agricola again needs money from the state

The Romanian state will have to continue injecting money into Banca Agricola (Agricultural Bank-BA), under the form of recapitalisation, so as to be able to privatise the bank.

At this moment, negotiations are being held with regard to the sum the group of foreign investors interested in taking over the bank is willing to pay.

“The Government has pledged to recapitalise Banca Agricola and is now in talks referring to the moment this process will occur,” Alin Giurgiu, State Ownership Fund (SOF) general manager, stated yesterday. The State Ownership Fund is the main shareholder in Banca Agricola, holding a stake that amounts to 56.5 percent.

Giurgiu added that there is the possibility for the fund infusion to be made before the privatisation process is completed, but declined specifying the exact sum destined to recapitalisation, which the Government is to settle.

The Executive did not wish to comment on the issue of capital infusion into the bank.

According to market sources, the value of recapitalisation might range between 50 and 100 million dollars.

Banca Agricola continues registering losses at the present moment, but Eugen Radulescu, chairman of Banca Agricola Management Board, declined offering any specific figures.

Last year, losses registered by Banca Agricola amounted to 100 million dollars, in line with Romanian accounting standards, and to 60 million dollars, according to international accounting norms – IAS.

The Romanian state has so far injected over 500 million dollars in Banca Agricola.