Romanian Govt Hikes CEC Bk Shr Cap By RON230M, Through Pft Capitalization

Romania's Government raised the share capital of state-owned lender CEC Bank by 230 million lei (EUR1=RON4.2012), at RON949.28 million, through recapitalizing part of the profit registered in 2008, following an order of the Finance minister Gheorghe Pogea.

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"Part of the 2008 profit was capitalized, almost RON230 million, according to the law," CEC Bank’s president Radu Ghetea told MEDIAFAX Tuesday.

Pogea said in June that RON229 million in CEC Bank’s profit for 2008 remained at the bank’s disposal.

Romania’s Government decided in July that the Finance Ministry will increase the lender’s share capital by only RON753 million, instead of RON900 million set previously. CEC Bank’s capitalization by RON900 million was part of the anti-crisis program of 2009’s budget.

CEC Bank reported a net profit of RON366 million in 2008, including the proceeds from the sale of a 25% stake in insurer Asiban, almost five-fold higher from RON75 million in 2007.

In the first four months, CEC Bank’s net profit was 2.3-fold lower on the year, at RON20.3 million.

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