Page 176 - Carte Falimentul BIR

by: government securities ...; bills of exchange and promissory notes ...; warrants
or deposit receipts ....; deposits with the National Bank of Romania ... consisting
of any assets that it can sell, buy or trade",

and art. 27 of the same law provides that:

"for the purpose of limiting the risk of banking and payment system, the National
Bank of Romania may also grant to banks other unsecured or guaranteed loans
by other assets than those provided by Article 20, exceptionally and on a case-
by-case basis."

Thus, as of April 28 2000, by letter no. P/249, the BIR leadership addressed to
th
the National Bank of Romania, respectively, "Governor" Emil Iota Ghizari,

pointing out that:

"Due to some measures taken to reduce the deposits from individuals (the
measure imposed by BNR, n.n.) and a malicious atmosphere created on the bank",
"BIR faces a temporary lack of liquidity".

The aforementioned address also stated that:

"Drastic measures have been taken to reduce expenditure, to increase the recovery
of receivables" etc., and that due to the "limitation of the operations and
restrictions imposed on the bank" (limitations and restrictions imposed by BNR,
n.n.) some economic agents transferred their accounts to other banks."

Finally, the National Bank of Romania has been asked to provide a short-term
loan of ROL 300 billion, as stated by the legal provisions mentioned above, which
would have led to balancing the payments with receipts and, implicitly, to
increasing customer confidence, stressing the fact that the granting of this credit
would avoid paying depositors by the Bank Deposit Guarantee Fund, with a sum
of approx. ROL 1,900 billion.

It was also required to allow BIR to resume normal business of attracting sources,
as well as resuming lending, timetable reevaluation, rescheduling, etc.
(disclaiming the restrictive measures imposed by BNR).

On May 5 2000, BNR, in address no. 684, under the signature of Mr. Deputy
th
Governor Mihai Bogza, informed BIR about the rejection by the BNR Board of
Directors of the application for this loan.

On May8th 2000, by letter no. P/254, the BIR leadership again addressed the
BNR governor, Emil Iota Ghizari, the vice-governors Mihai Bogza and Cristian
Popa, as the BIR faces a liquidity crisis due to the public rumours, reiterating the
request to approve the requested loan of ROL 300 billion, in order to avoid the

174