Paper

Romania: LAW No. 83/1997 for Privatisation of Commercial Banks in Which the State Is Shareholder

Ordinance related to the privatization of commercial Banks
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This paper articulates about the law passed by the Parliament of Romania pertaining to the privatization of commercial banks in which the State was a shareholder.

The different articles of the law outline the following aspects of privatization process. These include the:

  • Conditions under which the banks could be privatized;
  • Details about share valuation, allocation and regularization process;
  • Information the valuation report should contain with regard to social-capital maximal quota, entitlement level of different legal entities such as individuals, institutions and the State;
  • Categories of shares that could be issued, the amount of issue premium and that of the selling price.

The law also mentions that:

  • Banks could be privatized based on the recommendations of the privatization commission;
  • Ownership right over an amount of shares in excess of 5 percent of the total social capital of the bank could be obtained by taking a prior approval of the National Bank of Romania, but only by a person having a legal identity in Romania.

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