Banca Transilvania has purchased a portfolio consisting of performant loans, granted by the Bank of Cyprus in Romania to some retail customers. The transaction will be finalized at the end of February this year and, as a result, it will increase the retail customers database of Banca Transilvania. Thus, the Bank continues its’ acquisitions on the local market, subsequently to the taking over and integration of Volksbank Romania in 2015.
It’s not the first time when Banca Transilvania tries to take over Bank of Cyprus. In 2013, the activity of Bank of Cyprus was seriously affected by the reorganization of the Cypriot bank sector as an effect to the compulsory conditions imposed by the EU member states and FMI in 2013, in exchange for a financial aid program. Back then, Banca Transilvania, altogether with Raiffeisen Bank have tried in vain to purchase their Romanian branches.
Banca Transilvania is one of the most important players in the local bank sector, being the third loan institution in the local bank field given its’ assets, after BCR and BRD. And, after the integration is completed, it will compete with BRD for the second position.
Both transactions were assisted by PeliFilip law firm, whose Partner, Carmen Peli, states that “This transaction is an exception for the Romanian market, dominated lately by sales of non-performant loan portfolios”.
by Mihaela Constantin