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

Related Articles

Romanian software producer Bitdefender takes over French peer Profil Technology

Romanian security technology company Bitdefender has acquired its French peer Profil Technology as part of its expansion strategy on the corporate segment.  The terms of the deal were not ... more

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

EBRD, EIB lend €82mn to Moldova for key gas pipeline toward Romania

The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) will lend €41mn each and the European Union will add a €10mn grant to fund a pipeline to link ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss