ING changes view on Romanian state paying for Greek banks’ subsidiaries

Dutch lender ING Bank has revised its view that the Greek banks’ Romanian subsidiaries could receive financing from the Romanian state, to replace financing lines from their parent banks in case Greece exits from the Eurozone. ING now considers that no state funds will be accessed, given that the Romanian National Bank has indicated a stable situation. “In line with the EU directive we have revised our position and we don’t expect that state money will be used to support Greek banks’ subsidiaries in Romania and Bulgaria,” according to an ING Bank analysis, cited by local Mediafax. “The central bank governor Mugur Isarescu showed that Romanian banks with Greek capital are well positioned in the Romanian banking system, and they could withstand a Greek exit from the Eurozone.” According to the central bank, the Greek banks’ local subsidiaries are not dependent on their parent-groups. Intra-group credit lines account for only a quarter of their passives and more than 80% of these loans must be repaid in more than one year. ING: The Romanian state could finance Greek banks’ local subsidiaries. editor@romania-insider.com