From American Banker By TAMAR FRANKEL July 10, 2014 Many contributors helped bring about the most...
Law No. 83 on Privatization of Commercial Banks
(enacted in 1997)
Law No. 83 on Privatization of Commercial Banks pertains to the privatization of commercial banks in Romania in which the State is a shareholder.
The articles of the law outline the following aspects of the privatization process:
- Conditions under which banks can 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; and
- Categories of shares that can be issued, amount of issue premium and selling price.
The law also mentions that:
- Banks can be privatized based on recommendations of the privatization commission; and
- Ownership right over an amount of shares in excess of 5 percent of total social capital of a bank can be obtained by getting prior approval of the National Bank of Romania.