BEM was a black hole in which all overdue loans were thrown, former premier

Ex-premier Ion Sturza considers that Banca de Economii (BEM) was a black hole in which all the overdue loans from other banks were thrown under the influence of the political factor. However, he considers that the bank has sufficient liquidity to fulfill the current obligations towards its depositors, Info-Prim Neo reports. “Banca de Economii has the necessary liquidity to honor its obligations to the depositors and clients. It faces a capital problem owing to the evidently fraudulent lending policy started a few years ago and it is well known where it has its origins. Unfortunately, Banca de Economii was a black hole in which all the overdue loans from other banks were thrown. It was the influence of the political factor and I wouldn’t blame only the current government,” Ion Sturza said in the program “In Profunzime” on Pro TV channel. According to Ion Sturza, a recapitalization is needed. “Nothing bad will happen if 800 million lei is allocated for recapitalization. It is an investment and this money will not be lost if certain basic things are respected. The bank’s administration must be independent and professional,” he stated. Ion Sturza considers that an international contest should be announced to choose the bank’s president. “The Board of Directors should not include functionaries of ministries and departments and there should not be jealousy that they weren’t from the Ministry of Economy or the Ministry of Finance. These people don’t know what financial institution means. The directors should be independent, from the country or abroad, but with relevant background,” he said. The ex-premier also said that Minister of Finance Veaceslav Negruta should resign if they cannot remedy the situation at Banca de Economii. “The minister of finance is directly responsible for the financial sector. He must find solutions and money,” said Ion Sturza. The situation at the only financial institution controlled by the state became tenser after the publication of reports showing that the bank in 2012 sustained losses of 313 million lei. According to the same data, the liquidity of the BEM at the end of last year was larger than 3.3 billion lei, up 1 billion lei on 2011.