Romanian PM calls for local capital during privatizations, tackles Savings Bank case again

The future sell-offs should take into account Romanian capital too and not only foreign strategic investors, Prime Minister Calin Popescu Tariceanu said alluding to the privatization of the country’s oldest state-owned lender, the Romanian Savings Bank (CEC).

CEC's sell-off was interrupted at the end of 2006 after authorities decided the offer of the only bidder in the race, the National Bank of Greece, was too small.

"No one had the courage so far in Romania to carry out a privatization with local capital", the premier said, adding that sell-offs involving strategic investors are not always in accordance with the country's interests. Therefore, Romanian capital should be invested in several fields of activity, such as services, financial and banking, he said.

CEC will play an important role in the management and distribution of EU funds destined to agriculture, the premier said, adding the state still wants to privatize it.

The finance and economy minister last year said CEC will remain state property for another year. On the other hand, the head of CEC Radu Ghetea in December 2007 noted the bank will not be privatized before 2011 as it aims to boost efficiency and triple assets before sale.

The country’s oldest state-owned lender doubled net profit last year against the previous one, reaching 90 million lei (24.7 million euros) and plans to remain on profit this year.

CEC posted 39.8 million lei net profit in 2006, nine-fold boost against 2005.

CEC's assets exceeded 10 billion lei at the end of January 2008, up 37 percent against the 7.1 billion lei posted in 2006. Loans granted to clients saw a 53 percent increase last year against the previous one, reaching 4.89 billion lei. As many as 3.7 billion lei were given to people, while the rest to companies.

CEC collected deposits of 8 billion lei at the end of 2007, 37 percent more than in the previous year.

NewsIn