The second stage in the procedure of licensing credit co-operatives by the National Bank of Romania is drawing to an end.
After having completed the first stage during which credit co-operatives choosing to operate within networks consistent with the provisions of Romanian Government Emergency Ordinance No. 97/2000, the National Bank of Romania gave the preliminary set-up/reorganisation approval to five credit co-operative networks encompassing 987 credit co-operatives. The outcome of the second stage of the licensing procedure is to be released in the first half of February 2002.
By virtue of Art. 262 in the said Ordinance, the credit co-operatives that have not been licensed to operate or have been rejected in any of the stages of the licensing procedure shall be dissolved by law and shall enter into liquidation abiding by Law No. 109/1996 on organisation and operation of consumer and credit co-operatives.
In addition, the fact that credit co-operatives have gone through the first two licensing stages (in a total of three) of the above-mentioned legislation is only an indication of central bank's preliminary acceptance of the proposed project, i.e. the permission granted to proceed with the licensing process (licence to operate in their capacity as credit co-operatives). The credit co-operatives in course of licensing and which have won the approval for set-up/reorganisation are not yet under the National Bank of Romania's supervision, nor are they members of the Bank Deposit Guarantee Fund; household deposits with these entities are not guaranteed.
We point out yet again that credit co-operatives are to enter the deposit protection scheme only after being licensed to operate by the National Bank of Romania, abiding by the laws regarding payment of contributions to the Bank Deposit Guarantee Fund, whereas indemnities shall only be paid out provided that the head-office goes bankrupt.
As for the letters sent to and the complaints filed with the National Bank of Romania by depositors with credit co-operatives - popular banks, we hereby specify that the National Bank of Romania takes no responsibility for the operations performed by credit co-operatives - popular banks relative to their deponents or staff, let alone the co-operatives whose applications were rejected by the central bank in any stage of the licensing procedure. Moreover, the National Bank of Romania does not have the capacity or the responsibility, neither is involved in the dissolution process, i.e. liquidation of credit co-operatives that have been or will be rejected in any stage of the licensing procedure.
Under the circumstances, notice is hereby given that the National Bank of Romania will no longer answer to the complaints filed by third parties in respect of the credit co-operatives - popular banks that were not granted the preliminary set-up/reorganisation approval considering it is not vested with the power to solve the problems arising mainly from denied payment, extending the maturity of deposits, binding the depositors to convert their deposits into shares, denied repayment of amounts representing guarantees for loans, or any other abusive practices of certain credit co-operatives - popular banks. The parties concerned should file a petition in Court.