site.btaEurohold Board Chair: Operation of Group Companies Unharmed by Delicensing of Euroins Romania

Eurohold Board Chair: Operation of Group Companies Unharmed by Delicensing of Euroins Romania
Eurohold Board Chair: Operation of Group Companies Unharmed by Delicensing of Euroins Romania
The Chairman of the Supervisory Board of Eurohold Group, Asen Christov, insists that all companies in the group will continue operating after the delicensing of group member Euroins Romania, Sofia, Mar. 17, 2023 (BTA Photo)

The Chairman of the Supervisory Board of Eurohold Group, Asen Christov, insists that all companies in the group will continue operating after the delicensing of group member Euroins Romania. At a news conference in the BTA National Press Club Friday, Christov said: "Outside of Euroins Romania, all of Eurohold's other subsidiaries and businesses in all of the other 11 markets in which they operate, including insurance and energy, are operating and will continue to operate as usual and without any problems, servicing their customers and liabilities and delivering on their business plans for the year."

The press conference follows the March 17 decision of the Romanian financial regulator to revoke the insurance activity licence of Euroins Romania, open insolvency proceedings and appoint the Insurance Guarantee Fund (FGA) as the company's provisional administrator.

Christof told the media and Eurohold's management has taken all necessary actions to protect the other Group companies and ensure their smooth operation. "The case with Euroins Romania will not affect in any way the activities of the other group companies," he said.

Eurohold Group has started a procedure to challenge the Romanian regulator's decision in all competent courts in Europe and elsewhere.

"EBRD, which is a shareholder in our company, has taken our side," Christof said. He added that they "will sue for tens, if not hundreds of millions of euros for the failed investment if they do not return the licence".

He explained that the decision of the Romanian regulator will have mostly reputational damage for the holding company and in the next 2-3 months "it will be more difficult for us to go to debt markets, although this is not necessary". He added that no considerable payments by the group companies mature by the end of the year.

Christof also said: "We have the support of all our [Bulgarian] institutions. The Romanian financial regulator invited the Bulgarian ambassador for a meeting, but he was made to wait 30 minutes and he left. We have very strong support from the [Bulgarian] Financial Supervision Commission, the Ministry of Finance and Bulgarian President Rumen Radev."

The Bulgarian financial regulator said earlier on Friday that the delicensing of Euroins Romania won't affect the Bulgarian clients of Euroins Insurance Group.

/NF/

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By 20:57 on 03.03.2024 Today`s news

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