Provident increases capital by 17.4m euros to cover losses

Consumer loan company Provident has increased its share capital with a sum equivalent to almost 17.4 million euros in November last year, in order to cover operating losses recorded in 2007 and 2008, in line with requirements of the National Bank of Romania. “The company carried out a 68 million-RON (17.38 million-euro) capital increase in November last year, via a cash contribution from its shareholders. The purpose of the capital increase was to cover losses from operating investments made in 2007 and 2008, and from those we anticipate will occur in the future,” Vlad Sandru, communication manager of Provident Financial Romania told ZF. He specified that, according to the NBR’s norms, any loss derived from operating investments had to be covered by a capital increase. The company is registered with the General Register of Non-Bank Financial Institutions of the NBR.