Banks plan to increase exposure to Romania – IMF

WASHINGTON, July 22 (BestGrowthStock) – 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.

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Banks plan to increase exposure to Romania – IMF