IMF pushes for CEC privatisation

The delays occurred in the privatisation of SNP (National Oil Company) Petrom and the lack of a strategic investor for BCR (Romanian Commercial Bank) have resurrected an older problem: the privatisation of the Romanian Savings Bank (CEC), an institution that is fully owned by the Romanian State, through the Ministry of Finances.

As the privatisation process in Romania is progressing very slowly, the International Monetary Fund officials have recently requested the Romanian authorities to launch the privatisation of CEC this year.

“Since deferrals and excuses can apply to anything, the IMF representatives have already asked that the privatisation of CEC be launched. Moreover, it looks like the Ministry of Finances, as the CEC main shareholder, is supposed to start drafting the privatisation guidelines,” banking sources told Ziarul Financiar. CEC is currently undergoing an ample restructuring process, which started in 2002 and is scheduled to end in 2005.

“In line with the action plan proposed by ING and endorsed by the main shareholder, the Ministry of Finances, and by the CEC management, the Savings Bank’s privatisation should start in 2006, after the restructuring process is completed. And this will happen as the State guarantees will gradually disappear. We are now in the middle of the restructuring programme, which is moving ahead as planned,” CEC president Constantin Teculescu told Ziarul Financiar.

According to Teculescu, it is important that CEC’s financial results for 2003 and the restructuring outcome have been acknowledged by the experts of Interproject, the consultancy handling the implementation of the Twin Management programme, which is being enforced at CEC. The results were also appreciated by the officials of the World Bank, which is backing the programme.
oana.nuta@zf.ro