CEC eyes brokerage and leasing

Casa de Economii si Consemnatiuni (Romanian Savings Bank – CEC) is not giving up the idea of establishing a securities firm and a leasing company, which are actually two of its goals for 2004. “We filed the necessary papers for establishing the two companies with our shareholder, the Finance Ministry, and are now expecting its approval. We hope for a positive answer,” said Constantin Teculescu, CEC’s chairman. CEC is also moving on with its plans to enter the electronic instrument (i.e. cards) segment and to establish Erste Bausparkasse (EBS) Romania, a bank specialising in loans for buying, building or improving a home. The agreement the two entities signed early in August stipulates EBS Romania’s share capital will amount to about 10 million euros, contributed 60%-40% by EBS and CEC. CEC plans to invest 447bn ROL in 2004, with the money directed to computerisation, training courses for employees and purchase of armoured vehicles to transport cash, among others. CEC also intends to begin foreign currency operations and will provide savings instruments for individual consumers at first. “The next steps will be foreign currency transfers and loans for individuals and corporate clients,” Teculescu said. The company will promote a new type of funding for mortgage credits, as well. Whoever takes out a mortgage loan for at least 15 years will get a three-year grace period, during which they will make payments on interests but not on the principal. ZF