The capital deficit in the case of City Insurance, the leader of the insurance market, recently fined and placed under external management by the market regulator ASF, is close to RON 845 mln (over EUR 170 mln), according to official documents quoted by Economica.net.

The company has a liquidity indicator of only 0.16, compared to a required level of 1. Even worse, ASF reportedly found that the insurance company presented account statements not confirmed by the issuing bank in its attempt to demonstrate that it has the necessary liquidity to meet its capital requirements.

Furthermore, ASF says that the majority shareholder of the insurer, the company Vivendi International - controlled by Dan Odobescu, the brother-in-law of former prime minister Adrian Nastase - lent City Insurance substantial amounts of money, totaling EUR 75 mln at the end of 2020. In the end, these amounts were not found in the account indicated by the company, because that account did not exist, according to the documents sent by the bank.

(Photo: Pixabay)

andrei@romania-insider.com