Romania's new finance minister Florin Citu, speaking in a TV show on November 27, argued in favor of selling at least 20% of state-owned CEC Bank's shares through an initial public offering (IPO), followed by listing the bank’s shares on the Bucharest Stock Exchange.

He also confirmed plans to go ahead with the planned IPO at hydropower company Hidroelectrica.

"The listing will be a very good thing for the market and for Romania. We want to list at least 20% [of CEC Bank shares]. Listing means transparency, corporate governance. We want to have a genuine bank, where the state holds the majority but is able to compete with the other banks, rather than rely on the state’s support,” the minister said, local Ziarul Financiar reported.

At the end of 2018, CEC Bank had a capital of about RON 1.56 billion (EUR 330 million), but it had its capital recently increased by another RON 940 mln (EUR 200 mln) after the European Commisison gave the green light for the capital injection operated by the state.

CEC Bank has the largest territorial network, with over 1,000 units in the country. It ranked as the 7th largest bank in 2018, with RON 29.3 bln (EUR 6.16 bln) in assets and a market share of 6.5%.

editor@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)