Bloomberg News

EFG Plans to Inject $28 Million Into Romanian Unit by Year End

October 19, 2011

Oct. 19 (Bloomberg) -- EFG Eurobank Ergasias SA plans to inject about 20 million euros ($28 million) of capital into its Romanian unit Bancpost SA by the end of this year, the unit’s chairman Mihai Bogza said.

The shareholders of Bancpost are scheduled to vote on the increase on Nov. 7 to raise the bank’s solvency ratio from the current levels of 13.6 percent, under Romanian accounting standards, Bogza said in an interview in Bucharest today.

“Romania’s economy is still in a very difficult period and we want to be prepared to face this, we want to be well capitalized,” Bogza said. “We are a self-sustained bank and we have a very good coverage of loans with deposits, so we don’t depend too much on the financing from our Greek parent.”

International banks operating in Romania have brought 850 million lei ($272 million) into Romania this year as they grapple with rising bad loans, low demand for new credits and high market volatility.

Erste Group Bank AG plans to boost capital at its Banca Comerciala Romana SA by as much as 618 million lei, pending shareholders’ approval on Nov. 14, while Oesterreichische Volksbanken AG will inject as much as 200 million euros in the Romanian unit.

--Editors: Peter Branton, Tim Farrand

To contact the reporter on this story: Andra Timu in Bucharest at atimu@bloomberg.net.

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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