IEBA Trust in dire straits

The National Securities Commission (CNVM) has prohibited IEBA Trust, a brokerage firm on the capital market, to conduct certain operations on the capital market, particularly trading for its own account, as a result of the decline in the supervisory capital. The company’s manager, Marius Plugaru (photo), handed in his resignation from his position last month, after having been recalled from his position as member of the Board of Directors. The supervisory capital is an indicator calculated under the regulations of CNVM, whereby the institution checks whether the brokerage firms’ equity capital is proportionate to the business they conduct. IEBA Trust, a firm held by Greek investors, formed a consortium with international investment bank Credit Suisse and won the contract for the listing of a 46% stake in telephony operator RomTelecom on the capital market, a deal put at 1 billion euros, and the company officials say the decision of CNVM will not affect RomTelecom’s listing. The company is currently collecting the shares of Romexterra Bank as part of the offer made by a Cyprus-based company to the bank’s shareholders. IEBA Trust officials say the situation will be remedied. “It is something temporary. We’ve started a capital increase we hope will be completed in one week. We have started a series of big investments in software and hardware to support the projects we have that were to be funded through the capital increase. We also have to say the trend of the Bucharest Stock Exchange wasn’t helpful, either,” Panagiotis Diamandis, the company’s chairman told ZIARUL FINANCIAR.