ECONOMY

Eurobank not transferring E. Europe units

Greek lender Eurobank EFG does not plan to transfer its Eastern European units to a separate holding company, like its competitors National Bank of Greece and Alpha Bank, said Mihai Bogza, the chairman of Bancpost SA, the Romanian unit of the Greek group.

?Many banks have had the separation in mind, including an Austrian lender, but Eurobank is not considering such a plan, to my knowledge,? Bogza said on Wednesday in a speech at a bank seminar in Bucharest.

Bogza said he cannot complain over capital or funding at Bancpost. He told Bloomberg News in an interview on Wednesday that Bancpost has recently incorporated about 20 million euros from subordinate loans from its parent bank into Tier 1 capital.

The Bancpost chairman also said he is more worried about the recent filing for insolvency by Romania?s hydropower generator Hidroelectrica SA, which can affect the reputation of the Romanian state, than about politics in Greece.

Separately, Romanian banking association chief Radu Ghetea told the same seminar that Greek and other international banks in Romania will fight ?tooth and nail? to maintain their positions in the country in the face of possible regroupings. While some banks are reluctant to develop further in Romania, others including Banca Transilvania SA and CEC Bank SA have been able to increase their assets and market share, Ghetea said.

?I?m convinced that the banks that had the chance to earn money in Romania in the past years will fight tooth and nail to maintain their positions in the country, including the Greek banks,? Ghetea stated. [Bloomberg]