The European Commission concluded on Tuesday 29 October that Romania's plan to inject 200 million euros into CEC Bank, which is fully state-owned, does not involve any State Aid. “The recapitalization will be carried out on market terms and therefore involves no State Aid in favour of the bank within the meaning of EU rules”, the institution considers.
According to Margrethe Vestager, Commissioner for Competition Policy, “the EU Treaty is neutral when it comes to public versus private ownership. We found that the Romanian government, as the sole owner of CEC Bank, would carry out a capital injection in the bank at the same conditions that a private market operator would accept”.
In October 2019, Romania notified its intention to recapitalize the state-owned CEC Bank, to enhance the bank's lending capacity and modernise its IT systems.
Romania submitted a business plan for the bank covering the period 2019-2023 to the Commission.
For the Commission, the capital injection of 200 million euros will yield a return on investment in line with market conditions for the Romanian State, the bank's sole shareholder. The plan notably foresees an increase in the bank's lending and deposit market share and robust capital levels. (Original version in French by Lionel Changeur)