Page 155 - Carte Falimentul BIR

The result: instead of the BIR financial exercise for 1999 to end on a positive
scale, it recorded an "accounting loss" of ROL 101.5 billion.

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On February 1 2000, the "routine control" of the BNR on the BIR is transformed
into "special surveillance" of BNR management over the BIR activity.

Reason: "To end of the financial exercise for 1999 with an accounting loss." As
noted above, this accounting loss was the direct/ natural consequence of the
retroactive application of point 7 of BNR Circular 6/1999, over BIR.

Simultaneously with the special supervision, the NBR, through Deputy Governor
Mihai Bogza, imposes BIR, restrictive measures such as: prohibiting the
attraction of sources, prohibiting the granting of credits, prohibiting the

rescheduling and rescheduling of credits, prohibiting the extension of the credit
lines etc.

Basically, by imposing such restrictive measures, the International Bank of
Religions, as a commercial bank, is forbidden to do business.

The target of the BNR special oversight team was one: creating the conditions for
initiating the bankruptcy procedure of the BIR, according to the new regulations
imposed by GEO no. 186/1999.

Anticipating what is meant by these measures, the Board of Directors of the BIR,
through repeated addresses and interventions, urges BNR to give up these
prohibitions.

The leadership of the BNR - Emil Iota Ghizari and Mihai Bogza - resolutely
refuses to lift the restrictive measures.

Thus, from a net positive asset of BIR amounting ROL 186.2 billion on January
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1 2000, it gradually becomes negative: on April 30 2000, negative ROL 78.4
billion.

This way, the first reason for the bankruptcy procedure - "net negative asset",
provided in the famous GEO no. 186/1999, was elaborated by the owners of the
liquidation company "Assets Reconversion and Valuation".

At the same time, however, "good-willing" and "well-informed" people from the
BNR and even its officials, "recommend" the other banks, to avoid working with
BIR.

Even the first deputy governor of the National Bank of Romania, Mr. Emil Iota
Ghizari, urges the BOR Patriarchate to advise the worship units and the religious
services – all BIR customers - to withdraw deposits from the bank quickly as "this
is in crisis".

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