Eurom Bank to invest in IT and staff first

The new management of Eurom Bank, the former Dacia Felix Bank is still testing waters before actually entering the Romanian banking market, but according to its strategy for the near future, the first investments will be directed to IT and staff.

“We’re still at the beginning. It would be a mistake to bring the mentalities and conceptions from Israel and try to suddenly implement them in the Romanian banking system.

We’ll enter the market slowly, we’ll bring new products and services but we are still testing the market at the moment,” Avital Benesh, Eurom Bank chairman told Ziarul Financiar.

Avital Benesh was born in Bucharest in 1932 and emigrated to Israel in 1951, where he has been working in the banking field for 43 years. He was general manager of the Leumi Bank financial group and is currently a member of the Leumi Bank (a mortgage bank) Board.

Benesh mentioned that some $600,000 would be invested at first, which would be directed to the development of the computer system. Personnel investments are also scheduled, with the bank management currently looking for the best people in the system to fill in the vacancies.

“We’re not planning on expanding our territorial network, maybe just adjust it, that is opening new branches and closing those not making profit. We’re thinking of launching new products on the Romanian market and develop the credit card segment. We will focus on attracting as many Israeli investors as possible to operate on the retail segment and on the SMEs one,” Benesh added.

Eurom Bank’s current share capital amounts to 1,740bn lei, following the recent capital increase by 1,635bn lei, pursuant to the Emergency Ordinance 68/2000. The 1,635bn lei account for the value of the debts bought by SC Kolal BV Amsterdam from the National Bank of Romania and CEC (Romanian Savings Bank).

The Government in May endorsed an Emergency Ordinance allowing NBR and CEC to cede the receivables over Banca Dacia Felix to Kolal BV Amsterdam in exchange for $22.5 million. Kolal has already paid the National Bank of Romania $15 million for the first instalment. The next instalment is to be paid by December 31, 2001.

Kolal may back out of this business if the former significant shareholders of Banca Dacia Felix – SIF Transilvania, 15 natural and legal persons and Ardaf Insurance Company choose to exert the pre-emption right for the above-mentioned capital increase and buy shares from Kolal for 5,000 lei in face value each throughout August 15 -September 14.