The new owner of Banca Agricola, the consortium comprised of the Austria-based Raiffeisen Zentralbank (RZB) and the Romanian-American Enterprises Fund is planning to restore the market share and good name Banca Agricola enjoyed before experiencing the non-performing credits problem.
"Raiffeisen has a clear message to convey to the bank's clients, the potential business partners and the staff. Uncertainty has come to an end! Banca Agricola will be born again under Raiffeisen's logo. We came here to stay and to build," said Heinz Wiedner, RZB executive manager responsible for Romania during the signing of the "Finalisation certificate" transferring the ownership over Banca Agricola.
"We must change the image Banca Agricola has had in the country and in the world. No one has ever lost any money, while under Raiffeisen's logo," the RZB official said. After being held by the State for ten years, during which it registered more than one billion dollars in losses, Banca Agricola on Monday became private property in exchange for $15 million and a capital increase worth $37 million.
Heinz Wiedner mentioned that the strategy of the Austria-based bank, which took over 93% in Banca Agricola, targets "turning Raiffeisen-Banca Agricola into a bank that accounts for a significant share of the retail and corporate market."
Furthermore, the territorial network - a trump card for the bank, actually, will be adjusted, that is some branches not making profit will be closed, while others will be opened in areas more profitable for a bank.
The Austria-based bank following the transaction on Monday took over a bank, which registers 8,932bn lei in total assets and 3,565 employees.
Banca Agricola currently has a national network comprised of 226 branches, agencies and representative offices, which, along with the IT and cards systems was a decisive factor for the signing of the contract.
Ever since the beginning, when it decided to expand its Romanian operations, Raiffeisen aimed at a high market share, which, among others, is possible to attain through an extensive territorial network.
The contract by which Banca Agricola was taken over stipulates that Raiffeisen-Banca Agricola is expected to merge with RZB's Romanian subsidiary, Raiffeisenbank Romania by the end of 2002.
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