Romanian PM dismisses president of state – owned lender CEC Bank

The President of Romanian state – owned CEC Bank, Radu Ghetea, was dismissed by the Romanian Prime Minister, who recently took over the Finance Minister interim helm. PM Victor Ponta said he would sign the official document releasing Ghetea from his position on Monday, February 24. He added that the former Finance Minister, who resigned himself recently, had already prepared the documents to fire Ghetea, but “did not manage to sign” them. Ghetea has been running CEC Bank in the last 7 years, and his name was involved in a political scandal recently. The bank and its president were recently under scrutiny after lending money to the Romanian president's daughter, Ioana Basescu, who had bought an agricultural land. A Parliament Commission was created to check whether the loan was granted legally, or if any high – level intervention helped Ioana Basescu get a more favorable lending terms from CEC Bank. Former Finance Minister Daniel Chitoiu said in November last year that the Romanian president himself called him and asked him not to fire Ghetea form the helm of CEC Bank, without explaining his request. Chitoiu made this statement during investigations in the 'loan for the president daughter' case. It is yet uncertain who will be named president of CEC Bank after Ghetea will leave his post. CEC Bank had a gross profit of some EUR 7.6 million (RON 33.5 million) in 2012 and its portfolio of loans to corporate customers went up 32 percent, compared to the previous year. The bank’s assets increased by 8.5 percent in 2012. editor@romania-insider.com