Three banks submitted their bids for the privatization of the Romanian Saving House (CEC) on Monday. The third bank in Greece, Eurobank, pulled out from the race. The three banks enter the final stage of the purchase of 69.9 % of the CEC stocks. According to the privatization calendar, the winner is to be known in September.
The banks that submitted in time their bid for the privatization of the CEC are OTP Bank, National Bank of Greece, and Raifaissen Zentralbank, in consortium with Raiffeisen International Holding. Erste Bank, Dexia Bank, BMPS and EFG Bank pulled out after showing interest in October 2005.
According to the privatization plan, 69.9% of the stocks go to the winning bank, 9% are to be transferred to the Proprietatea Fund, and the rest is to be sold via the Stock Exchange.
The Financial Times has written that the Romanian Government might quit the privatization plan if the offers it receives are not very convincing. In an interview for Hotnews.ro, the director of CEC stated that 500 million Euros is ridiculously little. The executive manager of the OTP Bank, Sandor Csanyi, stated for the Financial Times that the Romanian government has too high of expectations.