Will the Romanian banking sector draw more attention from foreign investors this year than it did before? One might say it will, considering the authorities in Bucharest have already announced they are thinking of selling another at least 25% in Banca Comerciala Romana (Romanian Commercial Bank – BCR) and the privatisation of Casa de Economii si Consermnatiuni (Romanian Savings Bank – CEC), a fully state-owned institution, is due to begin in a matter of months.
Sooner than anyone expected, and even though the first stage of BCR’s privatisation is not over yet, the Romanian authorities announced they were preparing to put out a public offering to sell another 25% stake in the largest Romanian bank, prompted by the interest displayed by a number of international banks.
“This decision (to put out a public offering i.e.) was made together with the Prime Minster, starting from the interest expressed both to him and to me,” Finance minister Mihai Tanasescu was quoted as saying by Mediafax.
Tanasescu’s statement comes one day after Prime Minister Adrian Nastase, while in Brussels, had told Bloomberg in an interview, “from where I stand it is very important to convey a very clear message that we also need a strategic investor for BCR, besides EBRD… As of now, the Government’s credibility has improved a great deal, we have been approached by many major banks that would like to take part in this process.” Nastase would not reveal the names of the possible BCR investors.
BCR’s name is cast into the spotlight at a time when the Privatisation Authority (APAPS) is still discussing the latest details with EBRD and IFC on the sale of the first 25% plus two shares in the largest Romanian bank and at a time when solutions are being sought to proceed to the second stage, the sale of 8% in the bank to its employees.
The Finance minister said the Romanian authorities had already taken up accepting a new BCR investor with EBRD and IFC and the two institutions had had no objections.
After repeated failures, the first stage of BCR’s privatisation began in the fall of last year, when the contract for selling 25% plus two shares in BCR to EBRD and IFC for $222 million was signed. The money is yet to be paid and the deal should be concluded soon.
This transfer means the private capital will acquire majority in the holding structure, as the five financial investment companies (SIF) own approximately 30% in the bank.
This year might also come with some news about CEC as the Premier said, for the first time, at least officially, that CEC’s privatisation would begin very soon.
oana.nuta@zf.ro