Bayindirbank Turkey, one of the ailing Turkish banks, was taken over by the Turkish State on Monday night, in an operation that included other banking institutions, as well.
Paradoxically, this could mean one step towards the rescue of Banca Turco-Romana (Turkish-Romanian Bank-BTR).
Bayindirbank is held by Bayindir Holdings and by BTR, while BTR's main shareholder is the Bayindir Group.
Banca Turco-Romana might recover the investment it made in Bayindirbank, that is over $12 million, which could be used to cover the debts and scrape by.
"Even though this is not a complete rescue, it is one step ahead for BTR, though. The Turkish authorities may start showing more co-operation in BTR's case. They can do something now about BTR as they have the legal framework," sources on the banking market said.
BTR's rescue and the financial support must come from the Turkish authorities. This case was seriously debated by the presidents of the two countries, who met in Bucharest a few weeks ago.
BTR is more of a political case, rather than a financial one. That is why the National Bank of Romania has not made a decision about it in the course of time, although BTR has negative capital and does not comply with the banking norms.
During the last Board of Directors meeting, NBR was again lenient with BTR's shareholder and the Turkish authorities, giving them time to come up with the money. Meanwhile, Bayindirbank has been taken over by the Turkish authorities.
"NBR's Board of Directors did not postpone making a decision about BTR for no good reason," Adrian Vasilescu, NBR governor's advisor, told Ziarul Financiar.
According to its 1999 annual report, BTR bought 16.98% in Bayindirbank for $11.751 million.
At present, BTR registers some $11 million in debts and $8 million in negative funds. It operates only through three branches: Bucharest, Timisoara and Constanta. Some of its branches elsewhere were closed, while others were ceded to clients in exchange for the debts.
Most of the branches were taken over by a businessman, Romeo Pomponiu, owner of the Steilmann stores, who had the largest debts to recover.
BTR last week got $4 million from Turkey, which was used to cover current expenses, the payment of salaries to the nearly 100 employees included.
Rumours about an investor interested in taking over BTR after the debt problem is solved and the bank is saved by the Turkish authorities have been spreading lately.
BTR shares traded on the Bucharest Stock Exchange increased 50% over the last three sessions. BTR yesterday opened at 590 lei and reached 690 lei, only to close at 550 lei. The face value of a BTR share is 1,000 lei.
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