European Commission: CEC Bank Recapitalization Not State Aid

The European Commission has concluded that Romania’s recapitalisation of the fully state-owned CEC Bank with 200 million euros (one billion lei) does not constitute state aid within the meaning of EU state aid rules, the Commission said in a statement.

In September 2024, Romania informed the Commission of its intention to recapitalise CEC Bank, with the main objectives of improving its lending capacity, developing the CEC Financial Group and improving operational efficiency by streamlining workflows within the bank. Romania submitted a business plan covering the period 2025-2028, together with a long-term perspective for 2029-2032, and a report on the ‘private investor test’, all of which were assessed by the Commission.

The European Commission assessed the measure under EU State aid rules. Following the assessment, the Commission found that Romania’s recapitalisation of CEC Bank did not constitute State aid.

EU State aid rules state that if an EU Member State acts as a private investor and compensates for the risk in a manner that would be acceptable to a prudent private investor, the intervention does not constitute State aid.

The European Commission’s assessment of Romania’s business plan indicates that the capital injection of €100 million will generate a return in line with market conditions for the Romanian State, the sole shareholder of CEC Bank. The business plan envisages an increase in market share in lending and deposits, improved efficiency and a robust level of capital.