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September 18, 2021

EBRD agrees with Basescu on banks’ recapitalisation

Eastern European countries are concerned that upcoming rules on bank recapitalisation will allow regional subsidiaries to be drained of money, putting their economies at risk, EUobserver.com informs.

“We cannot accept a recapitalisation through money withdrawal, for instance from the Romanian market, in order to withstand the crises within the eurozone,” Romanian President Traian Basescu said on Sunday after the first part of an EU summit which will continue on Wednesday to set out conditions for a EUR 100 bln cash injection into Europe’s most troubled lenders. Experts support the idea that bank recapitalisation should not neglect subsidiaries in Eastern Europe. “We agree with the Romanian president’s message that any recapitalisation has to benefit the group as a whole,” Jeromin Zettelmeyer, deputy chief economist with the European Bank for Reconstruction and Development (EBRD) told this website.

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