“If we were to withdraw from Romania, it would weaken the extensive regional network we have worked so hard and for so long to put together. There is no need for any formal initiative to confirm our commitment to any of the countries in the region because our history should speak for itself,” Stepic told ZF in an interview.
He is the second Austrian banker to give assurances that financing to Romania will not be cut, after Andreas Treichl, head of Erste, said BCR will continue to be supported, following the harsh warnings launched a week ago by president Traian Basescu.
Stepic says the notion of banks financing their activity exclusively from the local market is unrealistic, so part of the growth will have to continue to be financed from abroad.
The CEO says existing clients and businesses will not be affected by the measures that the Austrian group is considering in order to streamline capital requirements, but there could be situations where the bank would abstain from entering into new business relations and into new areas, Stepic says.
Austrian banks became the subject of a scandal a week ago, after the Austrian central bank hinted that financing for the region could be tightly restricted depending on local resources and president Traian Basescu responded harshly, saying it would be a lack of fair play if Romania were to be left without financing in times of crisis.
Stepic says the Vienna Initiative of 2009 was a strong demonstration of the owners’ commitment to Central and Eastern European banks, but that such an agreement was not even necessary, given that these were long-term, strategic commitments.
“They were part of a natural logic. And of course the same logic still applies today for Raiffeisen and especially as far as Romania is concerned.” The Austrian group has assets of EUR6.3 billion in Romania, loans of EUR4.4 billion, deposits of EUR3.7 billion, over 6,000 employees and 544 branches.
He expects Raiffeisen Bank Romania to stay profitable despite the difficult market conditions because it has a solid business base and a very experienced management.
“I have no reason to believe Raiffeisen Bank Romania will not remain profitable because it has always been a very stable performer and has posted good results, including in times of crisis.”
Nine months into the year, the bank reported a net profit by IFRS standards of EUR60 million, down 30% on last year.
(English version by Daniela Stoican)