The Romanian Ministry of Finance intends to allocate a total of RON 1.75bn (EUR 350mn) of public money to capitalize the two state banks - CEC Bank (4th largest bank in the country by assets) and Exim Banca Românească (8th largest).

Specifically, CEC Bank's capital would increase by RON 1bn, to RON 3.5bn in 2024, and the capital of Exim Banca Românească by RON 750mn.

The new capital increase of CEC Bank comes after a similar operation in 2019 when its capital was increased by RON 940mn to RON 2.5bn with money from the state budget.

At that time, the European Commission responded favorably to Romania's request. In principle, the two banks that would receive money from the state should draw up business plans with clear objectives related to lending, deposits and improving efficiency.

(Photo: Andrei Stancu/ Dreamstime)

iulian@romania-insider.com