Carpatica asks shareholders to come up with another 15 million euros

Banca Comercială Carpatica (BCC stock symbol) controlled by Sibiu-based businessman Ilie Carabulea, proposed its shareholders to increase the share capital by 63.5 million RON (14.9 million euros) by contribution in cash to 342.4 million RON (80.5 million euros), so that it could better withstand macroeconomic shocks.

"The capital increase is intended to keep the bank going and provide a comfortable solvency indicator. Carpatica, like the rest of the banks in the system, has to be cope with a high credit risk cost," said Nicolae Surdu, general manager of Banca Comercială Carpatica.
If approved by the General Meeting of Shareholders on October 9, it will be the second capital increase conducted by the bank this year after having raised 50.8 million RON from its shareholders this spring as part of a 62.2 million RON capital increase. At the beginning of the year, the bank proposed a record capital increase of 103.4 million RON but shareholders only approved 60% of it.
Ilie Carabulea, the biggest shareholder, owns 37.9% in the lender, and should contribute 24 million RON in the increase.
Carpatica ended the first half with 40.2 million RON operating income, but the cost of credit risk caused it 100 million RON losses.