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
Related Articles
Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
EC clears €200mn capital increase at Romanian state-owned CEC Bank
The European Commission has approved Romania’s planned €200mn capital increase for state-owned CEC Bank, allowing the country to proceed with strengthening the lender’s financial position, ... more
Austrian bank Addiko to enter Romanian market with consumer loans first
Addiko Bank, an Austrian financial institution specialising in the consumer and SME sector operating in Central and South-Eastern Europe (CSE), is preparing to launch operations in Romania with the ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
15 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago