NBG to make a buy in Romania

The largest Greek commercial bank, the National Bank of Greece (NBG), is set on expanding to Romania, and is currently trying to acquire a Romanian bank, most likely Banca Comerciala Romana (The Romanian Commercial Bank-BCR).

Two weeks ago, the bank’s governor, a position equivalent to that of chairman, was present in Bucharest where he met Romanian high officials, including the Premier, to discuss on possibilities to acquire a Romanian bank that holds an important position within the banking system.

CEC (The Savings Bank) and BCR were brought under discussion, but the latest events have erased CEC from the list, since its privatisation might be delayed.

At the same time, the acquisition of a private bank was also discussed, one option being Banca Transilvania.

The Greek media published some information according to which NBG wants to expand in Romania and Egypt and is ready to pay at least 400 million dollars for this expansion. The first acquisition is planned to take place during the following three months, according to the Greek media.

NBC has only one subsidiary opened in Romania, and the only acquisition it has operated so far was the Bucharest subsidiary of the US bank Chase Manhattan, in 1999.

This acquisition is insufficient for NBG’s plan regarding its involvement in the Balkan region and Romania. NBG is running out of time, as other smaller Greek banks have managed to build a better position on the Romanian market.