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EC: Recapitalisation of Romania's CEC Bank does not constitute State aid

April 29, 2025

The European Commission (EC) has concluded that Romania's EUR 200 million (RON 1 billion) recapitalisation of the wholly state-owned CEC Bank does not constitute state aid within the meaning of EU state aid rules, the commissiom reported on Monday.In September 2024, Romania informed the commission of its intention to recapitalise CEC Bank, with the primary goals of enhancing 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, along with a long-term outlook for 2029-2032, and a report on the 'private investor test', all of which were evaluated by the commission.The commission assessed the measure under the EU state aid rules. Following its assessment, the commission found that Romania's recapitalisation of CEC Bank does not constitute state aid. EU state aid rules specify that if a member state acts as a private investor would and is compensated for the risk in a manner acceptable to a prudent private investor, the intervention does not constitute state aid.The commission's assessment of Romania's business plan indicated that the EUR 200 million capital injection would yield returns consistent with market conditions for the Romanian state, CEC Bank's sole shareholder. The business plan forecasts increased market share in lending and deposits, improved efficiency, and robust capital levels.

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The next Daily Bulletin will be Tuesday, June 10, 2025

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