Friday, July 23, 2010

Banks plan to increase exposure to Romania - IMF

July 22 (Reuters) - Several European banks plan to increase their exposure to Romania in coming months as economic activity in the country picks up, the International Monetary Fund and European Commission said on Thursday.

Officials from both institutions on Thursday met with nine of the largest European banks and credit agencies that have a presence in recession-hit Romania, the European Union's second-poorest member state.

The group has met regularly since Romania's economic crisis in 2009, which led to a 20 billion euro financial bailout from the IMF, EU and World Bank.

The IMF and EC did not elaborate on how the banks plan to increase their exposure.

An IMF mission is set to review Romania's performance under the terms of the bailout.

Among the banks that met with the IMF and EU was Erste Group Bank (ERST.VI), Raiffeisen (RIBH.VI), Eurobank EFG, National Bank of Greece(NBGr.AT), UniCredit (CRDI.MI), Societe Generale (SOGN.PA), Alpha Bank (ACBr.AT) , Volksbank International, and Piraeus Bank (BOPr.AT).

"With the global economy stabilizing, participants agreed that the improvement in Romania's external position since the beginning of the program allows for a degree of flexibility in the exposure commitments," the IMF and EC said in a joint statement.

"At the same time, several banks indicated their intention to increase their exposure to Romania in the coming months as economic activity begins to recover," it said.

No comments: