BCR chairman praises state ownership

The chairman of Banca Comerciala Romana (Romanian Commercial Bank – BCR) Nicolae Danila feels the State is a good shareholder for the bank and supports the idea of Romanian state-run companies growing regionally.
“I’m not saying private property does not have its values, but, in BCR’s case, the quality of the management and the shareholders’ attitude do have a special value,” Danila says. From where he stands, the quality of the management and the shareholders’ attitude “are much more important than the property type.” “Let’s be realistic, and admit they really show in BCR’s case,” Nicolae Danila says.
Prior to taking the lead of this state-run bank, Danila used to work in the private sector for 19 years, when he was employed by three major American banks.
The statements of the chairman of the largest bank in Romania come after the second failed attempt of the Romanian authorities to find a private investor to take over the controlling interests in BCR. The Romanian authorities were not unhappy with the lack of suitors for BCR. Maintaining control of the State over the largest bank enjoys a wide support, although it is against the commitments made to the IMF and EU.
At the same time, Danila says there are a great many options to continue the privatisation process, “yet we have to show this is a continuous process.”
Inviting EBRD and IFC to participate in BCR’s privatisation now, before a strategic investor is found, would be “a very good and lucrative” option, the BCR chairman thinks. “If EBRD and IFC bought into BCR, this would be a beneficial thing, as these institutions never invest capital unless they are sure they will make profit upon exit. They would grant support for privatisation and then be out in four to seven years,” Danila says.
At any rate, his conclusion after the second bid-less privatisation announcement is that, “for the time being, the strategy entailing a strategic investor is not working.” The Cabinet will soon consult with the IMF and the World Bank on the modification of the BCR privatisation strategy.