Erste Bank may need to boost Romania Unit Capital

Erste Group Bank may soon have to boost the capital of its Romanian unit, Banca Comerciala Romana SA, as the country’s banks are squeezed by bad debts and adverse economic conditions. Romania has the third-largest share of bad debt in the European Union after Latvia and Lithuania, according the International Monetary Fund. Erste Group Bank, Eastern Europe’s second-biggest lender, agreed this week to raise its stake in Banca Comerciala Romana SA by buying out shares held by four Romanian funds, a deal it expects to complete at least partly this year.

Source: Bloomberg