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Romania: Central Bank Closes Two Private Banks

Bucharest, 21 April 1997 (RFE/RL) - Romania's Central Bank today withdrew the licenses of two large private banks, which are virtually bankrupt. Central Bank Governor Mugur Isarescu said the banks involved are the Credit Bank of Bucharest and the Dacia Felix Bank of Cluj.

The action was anticipated, and authorities have said directors of each of the banks are under investigation on suspicion of fraud.

Romania's Parliament last week approved a law, enabling the Government to sell five state banks. The state banks include the country's richest financial institution, the Romanian Foreign TradeBank, as well as the Romanian Commercial Bank and the Romanian Bank for Development. The Government will maintain control of the Romanian Import-Export Bank.