Top IIB manager hired by Romanian Govt., pension funds' money lent to Russia-led bank still uncertain

Ştefan Nanu, an experienced employee of the Romanian Ministry of Finance recruited in 2018 by the Russian-led bank IIB, has returned as general director of the State Treasury, Ziarul Financiar announced.

Previously, Nanu led the Treasury of the Romanian Ministry of Finance for about a decade. He became general director of the State Treasury in 2007, and in the summer of 2009, he was sent to Washington to the World Bank as Romania's representative so that in the fall of 2013, he returned to the management of the Treasury Department after a four-year break.

Speaking of IIB, Romania decided to pull out from the bank after Russia invaded Ukraine, and President Klaus Iohannis signed in June the decree for the termination of the inter-government agreement that led to the formation of the bank. The decree was supposed to be endorsed by the lawmakers.

The expenditures related to Romania pulling out of IIB will be covered by the Government, according to the decree.

However, the Government will probably not cover the losses incurred by the Romanian pension funds, which placed nearly RON 1 bln (EUR 20mln) in IIB bonds, which are now rated in the junk category.

(Photo source: Inquam Photos/Octav Ganea)