Brainstorming on BCR privatisation

The Government is due to begin talks with the IMF this week in order to find ways to continue the privatisation of Banca Comerciala Romana (Romanian Commercial Bank – BCR).
A solution is supposed to be found by February 2003, when the IMF Board could decide on the release of the fourth tranche of the stand-by credit. The release of this tranche has been previously tied to the progress in privatising BCR.
Privatisation minister Ovidiu Musetescu during the latest Government session presented a note, which proposes consulting with the IMF and the World Bank (WB) in order to decide how to proceed with the bank’s sale. The IMF representatives are expecting an in-depth evaluation of the reasons why the two successive BCR sale attempts have failed, as this privatisation is one of the most important items in the stand-by agreement. This is also a condition in the PSAL II agreement concluded with the World Bank.
The BCR privatisation committee last week looked into two major possibilities: reversing the order of the privatisation stages by starting with the sale of the interests to the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and the bank employees, which sale is included in the current strategy, or listing a BCR stake on the Bucharest Stock Exchange.
Most of the committee members say the privatisation strategy must still include attracting a strategic investor to hold more than 50% in the bank and capable of providing a performance management and know-how transfer.
Premier Adrian Nastase has recently said that the lack of offers for BCR is no reason for the Romanian authorities to be concerned, as they are determined to sell the BCR stake only when a serious partner comes looking.
“We are prepared to join in the talks over BCR as soon as we are invited to,” Hildegard Gacek, the EBRD director for Romania says. Until such time comes, EBRD expects to get the results of the consultations between the Romanian authorities and the IMF and World Bank representatives.