Citibank Romania Enhances Local Operation to Bring Best Financial Solutions to Clients
Change of the Romanian Legal Vehicle means larger balance sheet and lending capacity
After more than 11 years of successful operations in Romania, Citibank Romania S.A. will be converted into a branch of Citibank Europe plc (CEP) based in Ireland effective January 1, 2009 (the "Effective Date"). The branch conversion to be implemented in the form of a cross-border merger has been approved both by the Irish and Romanian courts and Regulators and the name of the new vehicle will be Citibank Europe plc, Dublin - Romania Branch.
Shahmir Khaliq, Citi Country Officer for Citibank Romania S.A. and further for Citibank Europe plc, Dublin - Romania Branch, said: "This legal step is part of a global strategic effort to rationalize the organizational structure within Citi, a process that started three years ago in our region and it will result in the establishment of an enhanced legal vehicle with European presence. Our physical presence in the country and services provided to our clients will continue unchanged and will improve in various areas. As Citibank Europe plc Romania Branch we will remain a member of Citi, the world's leading financial services group and will continue to offer our global products and services as well as leading with our innovations to bring the best financial solutions for our clients in Romania."
"As a branch of CEP, we will be part of a European entity with a larger balance sheet and a greater lending capacity that will make us an even stronger partner for our clients in Romania and will allow us to expand more effectively in the market", added Khaliq.
Citibank Europe plc is a fully licensed bank based in Ireland, regulated by the Irish Financial Services Regulatory Authority. CEP had a balance sheet size of EUR 6.8 billion and a capital base of EUR 1.4 billion at year-end 2007.
On Effective Date, all client contracts and relationships will automatically transfer to the new legal entity pursuant to a legal succession between Citibank Romania S.A. as the current service provider and Citibank Europe plc as general legal successor of Citibank Romania S.A.; clients will not need to do anything. All existing client bank account and bank card numbers will remain unchanged. The new entity will continue to have the same IBAN, SWIFT-code and bank account number after the merger, however it has received a new tax number and company registration number. 2
As required by European Union rules deposit and investment protection for customers will be governed by the Irish laws. Details of the enhanced Irish Deposit Protection Scheme can be accessed through the following official website of the Irish Financial Services Regulatory Authority http://www.itsyourmoney.ie/index.jsp?1nID=93&2nID=96&pID=145&nID=385&aID=0#deposit and all information relevant to customers will be posted on Citibank Romania's local website.
Citibank Europe plc, Dublin - Romania Branch will remain under the supervision of the National Bank of Romania in certain areas (especially related to liquidity and conduct of business), in accordance with the Romanian legislation. In addition, we will be primarily supervised by the Financial Regulator, which supervises the whole Citibank Europe plc, including its branches.
Further information about the branch conversion and the new legal entity are available on the local website at www.citibank.ro.
About Citi
Citi has been present in Romania through Citibank Romania S.A. since 1996 and provides high-quality financial products and services to national and international companies, small and middle enterprises, the public sector, non-profit organizations and individuals. At present Citibank Romania holds 8 branches addressing mainly legal entities and 39 CitiFinancial agencies, providing loans for individuals. CitiFinancial also serves its clients through the 434 direct sales offices from 50 centers located around the country.
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found atwww.citigroup.com or www.citi.com.