Romanian International Bank (RIB) indirectly held by the Turkish state, is about to be sold. According to sources on the banking market, an American financial group, Merchant's Bank of California, is negotiating the takeover of the Romanian bank. Another possible buyer is Broadhurst Investment Fund.
According to the above-quoted sources, there are several other Turkish investors carefully considering the Romanian bank.
Merchant's Bank of California representatives could not be contacted, while Andrei Siminel, representative US-based New Century Holding that manages the Broadhurst Investment Fund, said no comment to the information at hand.
"The Americans stand the biggest chances of taking over RIB," the quoted source said. Romanian International Bank is 99.7% held by the Turkey-based Sumerbank Group. The Turkish State last fall took over Sumerbank Group, which was in financial trouble at that moment.
The authorities in Turkey are now trying to sell Sumerbank Group and every participation it holds. The negotiations over the Romanian International Bank are now carried out mostly in Turkey.
Due to the success registered by other Turkish groups on the Romanian market at the time, Sumerbank decided to come to Bucharest. Therefore, the Romanian International Bank became operational in 1998, with the Turkish investors announcing they had big plans for the Romanian banking sector.
The development strategy presented by the Turkish at the time stipulated that the Romanian International Bank was to have 25 branches open and hold an important share of the credit market by the end of 2000.
RIB's original strategy was extremely aggressive, launching new products and offering the first credit card for natural persons on the Romanian market. This campaign was too short, though.
The main shareholders, which were having trouble in Turkey, gradually reduced investments in Romania. RIB cut back on some of its branches and personnel, while the banking activity was put on hold, as only the utmost necessary operations were conducted.
The search for a possible buyer for RIB started in 2000. According to authorised sources, businessman Ioan Nicolae, owner of InterAgro Company, showed interest in RIB last year.
The name of the US-based Merchant's Bank of California financial group came out this spring. The National Bank of Romania is fully aware of the intention of those running the American group.
According to its website, Merchant's Bank of California, N.A. is headquartered in Los Angeles and provides financial commercial and factoring services, as well as money transfers to Romania.
The site does not provide any details as to who the shareholders might be or how the bank is faring. The money transfers from the USA and Canada are done only for Romania.
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