April 6 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said that it is seeking a resolution of the crisis on the Romanian insurance market following the withdrawal of the licence of Euroins Romania that would entail no additional costs to policy holders or tax-payers.
"The EBRD is actively engaging with all responsible parties to achieve a solution to the market disruption caused by the withdrawal of Euroins Romania's licence, which Euroins Romania has disclosed triggered clauses effectively eliminating an array of reinsurance coverage for insurance claims in Romania, and created a large mass of orphaned liabilities," the EBRD said in a statement on Wednesday.
The EBRD, along with Euroins Romania parent - Bulgaria-based EIG - has submitted a resolution proposal to the Romanian financial regulator ASF, it added.
An independent audit of Euroins Romania, after ASF said it had identified a capital shortfall of over 400 million euro ($435.7 million) at the insurer, gave no grounds to EBRD to revise its view of the unit's strong financial position at the time its licence was withdrawn, the EBRD also said.
EBRD also stressed that as a shareholder, it has worked with EIG to further improve operations and performance, particularly in Romania.
ASF approved EBRD's acquisition of a minority stake in EIG in February, after clearance for the deal was granted by Bulgaria's Financial Supervision Commission at the end of 2022.
($ = 0.9179 euro)