Millenium BCP to sell or liquidate Romanian subsidiary.

By bne IntelliNews August 22, 2013

Portuguese bank Millenium BCP will try to sell its Romanian subsidiary or will close it down, in case no buyer is identified, Mediafax reported quoting unofficial sources. The move is reportedly part of the restructuring plan agreed by the Portuguese financial group under the recovery programme set with the EC and financed by the ECB. The Romanian subsidiary’s officials refused to comment.

The Romanian subsidiary should be sold or liquidated within two years, sources said but according to others, it may be even sooner.

Millenium BCP Romania holds a market share of under 1%. It entered the Romanian market in late 2007 and initially was planning to break even in 2011. The recession years however had a major impact on the bank’s profitability.

The sale of BCP’s subsidiary in Romania, where the Portuguese group entered relatively late and has not managed to break even, was required by the Troika*, sources said. Otherway, the subsidiary should start accelerated disintermediation and should file for voluntary liquidation.

Millenium Romania reported that its losses narrowed by 47% y/y to EUR 3.5mn in H1 this year. The bank operates 65 subsidiaries and employs 584. The stock of loans increased by 19% y/y to EUR 481mn at the end of June 2013. The stock of deposits increased by 18% y/y to EUR 351mn.

* IMF, ECB, EC

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