Rationalised structure, improved asset and capital yield, more efficient personnel use, modernisation of the risk management and IT systems, extended implementation of the corporate governance principles - these are the main goals set for BCR (Romanian Commercial Bank) by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), the new shareholders of Romania's largest bank.
"We have negotiated a thoroughly detailed programme, from corporate governance rules, to IT and risk management systems. Our role is to make sure, through our representative in the Supervisory Board, that the BCR management will apply this programme. We have included very detailed measures, which span on a 3-5 year-interval and the management has subscribed to this progamme. The purpose is to make BCR a better bank, more appealing to strategic investors," Noreen Doyle, first vice-president of EBRD told Ziarul Financiar, in an exclusive interview.
The officials of EBRD and IFC are supposed to be in Bucharest tomorrow and sign the sale-purchase contracts for 25% plus 2 shares in BCR, for $22 million. Following the transaction, the State will be left with some 44.8% in BCR, of which the bank's employees and pensioners will be allowed to buy up to 8% (for the face value of 10,0000 ROL/share), with the rest of 30.12% owned by the five Financial Investment Companies (SIFs).
According to Noreen Doyle, in 18-24 months, BCR is likely to receive the first expressions of interest from leading banking groups, which will have completed their consolidation and repositioning process by that time, so as to be able to resume acquisitions.
"Let us not forget that the main stake in BCR means an investment worth $450 million, whereas some $670m would be needed for a 75% stake, and this is big money for any financial group. All the more so, since additional investments would be needed afterwards," the EBRD first vice-president said.
The EBRD and IFC have assessed Romania's largest bank at some 850 million dollars.
"Our assessment is based on a very exact due diligence, conducted by highly experienced specialists. Let us not forget this is a fair transaction, closed between a buyer that wanted to buy and a seller that wanted to sell," Noreen Doyle said.
The two institutions requested the creation of additional provisions worth more than 1,400bn ROL for credits that may be deemed as bad loans. Moreover, experts from the two institutions noted a 2,000bn ROL overevaluation of the fixed assets, mainly.
According to Doyle, the Romanian Commercial Bank's management agreed the group's structure needed rationalisation and also bigger investments in certain fields.
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