In a radical change of strategy, Banca Comerciala Romana (BCR), the largest bank in the Romanian banking system, will now be privatised before the Romanian Savings Bank (CEC), with the state selling 50% plus one share in the bank, instead of 51% as under the old strategy.
The decision was reached by Premier Calin Popescu Tariceanu following consultation with members of the privatisation committees for the two banks.
“The decision was made to disregard any considerations other than that of completing the privatisation preparations. BCR is ready to begin its privatisation procedures so we will let it go first,” Prime Minister Tariceanu told Ziarul Financiar.
He said the BCR privatisation strategy in its revised form would be adopted by the government when it meets on May 26. The main criteria in choosing the buyer will be its position as strategic investor and the price offered.
As to the privatisation of CEC, Tariceanu said it would follow “as soon as possible”, while explaining that the Cabinet was hurrying to prove “its firm and irrevocable intent ” to privatise the two banks.
The prime minister”s statement brought to an end the recent confusion surrounding the order in which the two banks will be privatised.
With BCR, Tariceanu believes payment for the stake to be put up for sale could be made by the end of year. The government will authorise the State Assets Resolution Authority (AVAS) as representative of the state and owner of 37% in BCR to achieve the maximum price possible in a deal with a strategic investor.
The list of investors to have officially expressed an interest in the bank includes BNP Paribas, Deutsche Bank, UniCredito and Intessa, said Tariceanu.
“We are not bringing political concepts into play here as to who will get to dominate the system: the competition will be open and the winner will be a strategic investor and also the highest bidder.”
An announcement on the CEC privatisation would be published by the end of June, the Premier added.
According to Tariceanu, banks such as Erste, Rabobank, OTP and Dexia have voiced interest in CEC.
EADS Deal
The government is ready to take the decision to cancel the contract signed by the former Cabinet with EADS Group for the securing of the state”s borders if EADS does not accept a reduction of the initial commitment, Tariceanu said.
“The Ministry of Administration and Interior is trying to renegotiate the deal, but EADS is refusing to accept the new conditions, which comes as a surprise to me.”
He explained that renegotiation of the contract was being attempted since the initial goals were found to overlap with a series of smaller security projects paid for with PHARE funds.
“We want those parts of the EADS contract removed, which implies a reduction in the value of the contract,” Tariceanu explained. The reduction in the contract could amount to around 240 million euros.
“The Romanian state is not a source of turnover for EADS. We only enter into contracts that provide as much as we need,” he said. razvan.voican@zf.ro