Several banks are already thinking of taking over stakes incompanies under restructuring in exchange for the loans granted,once the NBR (National Bank of Romania) approves the draftregulation that allows the temporary holding of equity as part ofassistance operations aimed at debt recovery.
"Since our branch is supervised by the Dutch central bank, we havealready considered this solution in Flamingo's restructuring plan,and suggested it at a certain point, but it never happened. Adebt-equity swap can be a good solution because it allows you, as abank, the possibility to directly influence the client'srestructuring and if they are in a very difficult situation, equityis better than nothing," says Mişu Negriţoiu, CEO of ING BankRomania.
Ordinance 99/2006, which regulates the operation of financialinstitutions, does not, however, allow local banks to havequalifying holdings yet, which would afford them control overentities outside the financial sector.
"The regulation prepared by the NBR is definitely a welcomemeasure, and there will be banks swapping debt for equity," saidAndrei Cionca, partner with Casa de Insolvenţă Transilvania(Transilvania Insolvency Firm), judicial administrator of companiessuch as Flanco, Diverta, and Leonardo.
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