BRD: We hope the lei resources will cost less

BRD Groupe Societe Generale posted €370 million in profit in 2008. “If the Romanian bank needs liquidity, we will provide the funds, but not the other way around. Societe Generale will grant its Romanian subsidiary liquidities in case the latter needs these, and this commitment would have been as strong even without Romania’s agreement with the IMF,” said the French group’s General Manager, Frederic Oudea, yesterday.

The financing lines from the mother-bank amount to some €2 billion, at about system average, of 20 percent of total assets. The player has a balanced loan-deposit ratio.

Bankers hope interest rates will slide, especially for lei-denominated loans, which could be a result of the IMF agreement or the decline in the Cash Reserve Ratio (CRR). “All banks in Romania are hoping that the IMF agreement will lead to a drop in interest rates,” said Patrick Gelin, BRD’s Chairman of the Board and Chief Executive Officer.