BCR is one of the most valuable stakes of the SIFs, which got 60m-euro dividends in 2008 from it

BCR management proposed the five financial investment companies (SIF) that own 30% in the bank to give up the almost 25m-euro dividends they are due to get from last year's income and have them included in the bank's capital. This would allow the SIFs to avoid a capital increase through cash contributions worth above 100m euros, to which they should come up with more than 30m euros.

"The majority shareholder, Erste Bank, proposed to us that profit generated last year not be distributed, but incorporated in BCR's equity capital. The proposal presents the advantage that SIFs will no longer be subject to a big financial effort in case a capital increase through contributions in cash of 100-120m euros takes place. We are still in talks, and any decision will be subject to shareholders' approval," said Costel Ceocea, chairman and general manager of SIF Moldova (SIF2). SIF Moldova owns a 6% stake in BCR.

According with some market sources, BCR last year generated net income worth around 211m euros in line with IFRS. The bank has to grant in the first three years after privatisation, dividends accounting for 40% in IFRS profit, so that SIFs should this year receive cumulated dividends of more than 25m euros.

BCR is one of the most valuable stakes in SIFs' portfolio. In 2009, they collected an overall sum of above 240m RON (60m euros) as dividends for financial year 2008.

The five SIFs want to retain their stakes in BCR, the biggest bank on the market, at all costs, even if they were to do without BCR dividends in 2010.

SIFs' revenues would be seriously hurt by the lack of BCR dividends as other companies in the investment companies' portfolios have also announced they would not disburse dividends, and others are asking for SIFs' support