(story to be published in tomorrow's issue, March 30)
Anthony van der Heijden led the operations of the Dutch financial group ING Barings in Romania for five years, and afterwards was invested with a similar mandate in Hungary. All the same, he accepted the offer of "Ion ?iriac Commercial Bank" and became its chairman last autumn.
Ziarul Financiar: Why did you choose to come back to Romania?
Anthony van der Heijden: In early May 1999, I was appointed country head of ING Group in Hungary and by August I was also mandated to handle ING operations in Romania. During that period, I was asked to consider the possibility of my coming back to Romania as a chairman of BCIT. I seriously considered the offer. It meant I was to give up an important position in an internationally renowned banking institution. The situation of Hungary is, as you well know it, different from that of Romania. The legislative and fiscal system is better organised, but there still are some bureaucratic aspects present, too. If we refer to the financial and investments environment of the two countries, Hungary is of course ahead of Romania. It is not less true though that Hungary has been affected by the change of policy of international financial institutions. This is in itself surprising since Hungary has proved capable of easily coping with the crisis of Russia. Business ties with Russia have been more extended than those of Romania. On the other hand, I intensely worked for five years in Romania. Challenges, my fondness of Romania, the culture and people here were eventually more powerful than all the other arguments.
ZF: Didn't you consider five years in Romania were enough?
AvdH: You should not forget that my being appointed in Hungary was not due to the fact that I wanted to leave Romania. No way. This is about an internal policy of international companies. When you you like to offer all your energy to build up and develop businesses and you easily adjust to the environment, you start getting used to it and years no longer count. As I have said, I appreciate the Romanian culture and traditions very much. The business environment is not however very easy. And it is exactly this challenge that I like very much. Finally, I think the most important thing is to have confidence in what you do.
ZF: What are your plans for the bank for the next four years?
AvdH: When I arrived I found an organisation with an adequate territorial network, with a well enough developed IT system, an institution with over 450 depositors, natural persons and small and medium-sized enterprises, with shareholders closely interested in developing the bank. At the same time, the bank has loyal personnel. On the basis of what already exists, we plan to make some finesse adjustments within the organisational structure at the level of the central unit, as well as at the level of territorial units. Nothing spectacular or worth worrying about, though. The bank will become much more transparent and efficient. We plan to bring in larger orientation and increased efficiency in the activity we develop. New products are being tested and will be launched. I can mention in this sense the central Account (a salary account in which the owners will be granted a credit equal to their net monthly income, to which is added a credit card). This account will allow the owner, natural or legal person, to have automatic access to a series of other services (products) offered by the bank. A new image will be introduced under a new emblem and a distinct, unitary presentation style. Personnel training programmes have been initiated with a view to approaching the clients in a new manner characterised by quality delivery and high professionalism. I am sure that our current and future clients will appreciate it. They will feel more than in the past the special way in which the bank treats them, the fact that they made a good choice. Of course, I realise that all these are ambitious projects, but people who know me know this is how I am, that this is the way I work.
ZF: Therefore, we should understand you will not develop the territorial units network very much?
AvdH: Yes. Beside two or three cities we have in view for this year, we consider we have finalised the territorial coverage. Still, Bucharest is likely to be an exception. In the near future, our clients will be served to a great extent through e-banking services and products, ATMs and credit cards. Classical banking products and services mean bank headquarters. At present, though, these are history. They are already too expensive and are not the proper answer to current demands. Pay orders, deposits, cash withdrawals are no longer reasons requiring the presence of the client at the bank's offices. This is only necessary on special occasions. It is not necessary to have a PC for e-banking services and products. Many see this as an obstacle. There are though other viable alternatives. We will soon introduce one of these alternatives.
ZF: Natural persons and small and middle-sized enterprises are therefore the main targets of the bank?
AvdH: Yes, indeed. One of the deficiencies of a country that does not have a developed market economy is the lack of the middle class. This is also the case of Romania. We wish to contribute to the development of this social structure and of small and middle-sized enterprises.
ZF: What can you tell us about BCIT financial indicators?
AvdH: The bank raised its share capital last November and has recently announced a new capital increase by 300 billion lei. We are upbeat as to profit on year 2000. We revised the credit portfolio and we can say this is now under control. Year 2000 will be the year of the bank's restructuring and in year 2001 results will be manifest.
ZF: What is your opinion on the decision by the National Bank to heighten the level of minimal compulsory reserves?
AvdH: Of course commercial banks are not too delighted with it, the less so as this does not raise the efficiency of economic activities and crediting products get more expensive. One way or another, the customer is the one to eventually pay for demands imposed by the central bank.
ZF: Which are the economic errors of year 1999?
AvdH: I wouldn't call them errors. We should better use the term deficiencies. In this sense I could mention the fact that the forecast level for inflation and budgetary deficit was not attained. Economic decline, the growth of the underground economy and the inability to improve the climate for investors would not nominate Romania for the Oscar awards. The first months of year 2000 do not show any progress in this sense. The good news is that there are certain positive results in relation to the IMF, though discussions linked to the budget and budgetary deficit have not been finalised. Romania is in talks with the IMF for the money it needs to support the payments balance. The question is whether this is necessary any longer. Romania already has access to foreign financing for projects. These projects only need to be created.
ZF: What should be done in year 2000?
AvdH: Advance or more clearly improve legislation under all aspects, the introduction of IAS (international accounting standards). These are real obstacles in the way of investments.
ZF: Do you consider that in year 2000 the new strategy for the EU integration of countries of the region could make the influence exercised by the Union stronger than that of the IMF?
AvdH: The European Union is the most important partner of the IMF. But Europe has indeed more to offer to Romania than the IMF has.
ZF: What is your opinion on the underground economy?
AvdH: I consider it a major problem at present and for the future. My opinion is that it is continuously growing and will not disappear by being ignored or by tightening legislation in the fiscal domain.
ZF: What is your opinion on the so much discussed fiscal incentives? Should they be reinstated or suspended? AvdH: The truth is that the suspension of fiscal incentives has not contributed to the improvement of the environment for investors. Figures show that investments registered a dramatic fall. Something should be done for the existent investors, but also for potential ones. Romania needs to create an attractive climate that should regain investors' confidence. Fiscal incentives are not enough to convey this image. As I have said, improving the entire legislative and fiscal framework is of utmost importance. Reinstating fiscal incentives at this moment will not persuade investors. A real progress as to the legislative and fiscal framework, as well as fighting against the underground economy would have a stronger impact now.
ZF: How will the bank look in four years?
AvdH: It will be a trustworthy partner, appreciated and efficient for the small and middle-sized enterprises, as well as for natural persons, offering high-quality services. It will succeed in confirming the concept of "first rank private bank" on the market segment it addresses, by having skilled, motivated and self-confident personnel.
Interview made by Corina Vasile
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