European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) have prepared a restructuring plan for state-run Romanian commercial bank Banca Comerciala Romana in which the two financial institutions will acquire a 25% stake.
The restructuring plan envisages the bank’s strategy revision, organizational reshaping, a better risk management and retail operations.
The two future shareholders also requested the separation of management functions to the executive ones. The EBRD and the IFC asked that the bank to be managed by a general director and a deputy general director. Both institutions will be represented by two people and one of the bank’s directors in he bank’s board of administration.
The EBRD and the IFC are expected to pay up to US$225mn for 25% stake plus two shares in the BCR.
The two institutions also requested that an assessment of the bank’s participations in other financial and non-financial companies as well as the bank’s ranches efficiency to be assessed. They said that the BCR has fixed assets worth US$350mn and an entity should be created to manage all those assets. Marketing operations will be also revised.
The bank has a share capital of €226mn divided in some 792.5mn shares. It reported a net profit of US$75mn over the first six months this year. The 2003 estimated net profit is US$160mn.