The Financial Services Industry Monthly Bulletin is a banking and finance law publication by Reff & Associates (correspondent law firm of Deloitte Romania) and Deloitte Tax. Each month, our specialist team of finance lawyers and tax advisors will keep you updated with the latest legal, regulatory and tax developments in the financial services industry in Romania as well as with the recent changes and trends in the international financial regulations. The areas covered by our bulletin include: Banking and non-banking financial institutions Capital markets Insurance companies Private pension funds

1. January 2010

3. NBR amends the current regulatory framework
regarding classification of credit risk by credit
institutions
NBR’s Circular no. 1/2010 regarding the level of
the reference interest rate applicable for January NBR issued Regulation no. 1/2010 (“Regulation
2010, namely 8% per year 1/2010”) for the amendment of NBR’s
Regulation no. 18/2009 regarding the
The above mentioned Circular was published in administration of the activity of credit
the Official Gazette no. 2/4.01.2010 and may be institutions, the internal process of evaluation of
accessed here. the adequacy of capital to risks and the
conditions of outsourcing of their activities.
NBR’s Board of Directors decided the reduction
of the monetary policy interest rate to 7.5 % per
year Regulation 1/2010 amends the regulatory
framework applicable to classification of credit
NBR’s Board of Directors decided on the 5th of risk by credit institutions following debt
January 2010 the following: restructuring operations as follows: the
prohibition of upgrading the credit risk
 to reduce, starting with the 6th of January classification in case of restructuring/refinancing
2010, the monetary policy interest rate to
of credits was repealed. However, following such
7.5 % per year from 8.0 % per year;
operations, credit institutions have the obligation
 to ensure a firm management of liquidity in to evaluate the financial performance of the
the banking system in order to consolidate debtor more strictly than prior to the
the transmission of monetary policy signals; restructuring/refinancing, on the basis of
updated information.
 to maintain the current level of the
minimum mandatory reserve rates on both Regulation 1/2010 was published in the Official
RON and foreign currency liabilities of credit Gazette no. 39/18.01.2010 and may be accessed
institutions.
here.
The above mentioned decision may be accessed
here.
Financial Services Industry Monthly Bulletin 3

4. NBR amends the current regulatory framework
applicable to classification of credit risk by non
banking financial institutions
NBR issued Regulation no. 2/2010 (“Regulation
2/2010”) for the amendment of NBR’s
Regulation no. 20/2009 regarding non banking
financial institutions.
Regulation 2/2010 amends the regulatory
framework applicable to classification of credit
risk by non banking financial institutions
following debt restructuring operations. The
main amendments refer to the following
exceptions from the prohibition of framing the
restructured debts into a more favorable
category of credit risk classification as follows:
 the first restructuring of credits representing
bad-debts can lead to framing these credits
in a more favorable credit risk category, but
with no more than 2 classification
categories for credits classified at the
moment of restructuring in the “loss”
category, and with no more than one
classification category for the other credits.
 following the payment of due installments
of restructured credits, these can be framed
into a more favorable credit risk category.
Regulation 2/2010 was published in the Official
Gazette no. 39/18.01.2010 and may be accessed
here.
4

5. NSC amends the regulatory framework
regarding the reporting of the evaluation of the
application of the mechanism without pre-
NSC amends the regulatory framework validation for financial instruments and global
applicable to NSC’s income accounts system
NSC adopted Regulation no. 1/2010 for the NSC enacted Decision no. 4 of 28.01.2010 for
amendment of NSC’s Regulation no. 7/2006 the amendment of NSC’s Decision no. 1/2008 in
regarding NSC’s income. Regulation no. 1/2010 the sense that the Central Depository SA and
was approved through NSC’s Order no. 1 of Bucharest Stock Exchange SA must notify NSC of
21.01.2010, published in the Official Gazette no. the final evaluation of the application of the
54/25.01.2010 and may be accessed here. mechanism without pre-validation of financial
instruments and global accounts system until the
first business day of April 2010. The said
Decision may be accessed here.
Financial Services Industry Monthly Bulletin 5

6. Financial Services Industry Monthly Bulletin 7

7. European Central Bank amends the regulatory
framework applicable to monetary, financial
institutions and markets statistics
European Central Bank issued Guideline
ECB/2009/234 of December 4 2009 amending
Guideline ECB/2007/9 on monetary, financial
institutions and markets statistics. The said
guideline is applicable to the central banks of the
Euro-system as of 1 July 2010.
The above mentioned Guideline was published
in the Official Journal of the European Union no.
L 16/21.01.2010 and may be accessed here.
Financial Services Industry Monthly Bulletin 7

8. Financial Services Industry Monthly Bulletin 7

9. Proposal for Regulation regarding the
organization and functioning within NBR of the Proposal of Norm for the amendment of Norm
Payment Incidents Register. no. 2/2006 regarding the authorization of the
administrators of voluntary pension funds issued
The above mentioned proposal may be accessed by the PPSSC
here.
The deadline for submitting any comments to
Proposal for Order for the amendment of NBR’s the said proposal is 10th of February 2010. The
Order no. 12/2007 regarding the reporting of above mentioned proposal may be accessed
the minimum capital requirements for credit here.
institutions
Proposal of Norm for the amendment of PPSSC’s
The above mentioned proposal may be accessed Norm no. 2/2007 regarding the authorization of
here. administrators within the privately managed
pension system
The deadline for submitting any comments on
the said proposal is 10th of February 2010. The
above mentioned proposal may be accessed
NSC issued its investigation plan for 2010 which here.
may be accessed here.
Proposal of Norm for the amendment of PPSSC’s
Proposal for Instruction for the amendment of Norm no. 7/2008 regarding the fees for
NSC’s Instruction no. 2/2007 regarding the licensing, approval and functioning within the
drafting and submission of the annual financial privately managed pension system
statements by authorized entities regulated and
supervised by NSC The above mentioned proposal may be accessed
here.
The above mentioned proposal may be accessed
here. Proposal for Norm for the amendment of
PPSSC’s Norm no. 8/2008 regarding the fees for
licensing, approval and functioning within the
voluntary pension system
The above mentioned proposal may be accessed
here.
Proposal for Norm regarding the control
procedure of the entities performing activities
within the private pension system
The above mentioned proposal may be accessed
here.
Financial Services Industry Monthly Bulletin 9

10. Financial Services Industry Monthly Bulletin 7

11. European Central Bank endorsed on 8 January
2010 the Proposals for Regulations of the
European Parliament and of the Council
establishing a European Banking Authority, a
European Insurance and Occupational Pensions
Authority and a European Securities and Markets
Authority. The said endorsement was published
in the Official Journal of the European Union no.
C 13/20.01.2010 and may be accessed here.
The Committee of European Banking Supervisors
published on January 6 2010 the revised
framework for common reporting of solvency
ratios for credit institutions and investment firms
(COREP), incorporating the changes brought by
directives 2009/27/EC, 2009/83/EC si
2009/111/EC. For further details please access
here.
The Committee of European Banking Supervisors
published on 28 January 2010 a revised version
of its guidelines for implementing a common
European framework on supervisory disclosure.
For further details please access here.
The Committee of European Securities
Regulators opens for public consultation the
guidance regarding the reporting of transactions
on OTC derivative instruments. For further
details please access here.
Financial Services Industry Monthly Bulletin 11

12. Speakers and Topics
Antonis Ioannides, Partner Financial Advisory
Introduction
Alexander Flatz, Director Reorganization
Date Services, Central Europe
17 February 2010 Patterns of corporate crisis
Time  Stages of a crisis – theory vs. practice.
9.00 – 13.30  Behavioral patterns: Owners; Management;
Banks; Advisors
Venue  Challenges for the stakeholders
Howard Johnson Hotel  Valuable characteristics of advisors and
Platinum Grand Ballroom bankers in crises
The workshop organised by Deloitte Romania Andrei Burz-Pinzaru, Partner Legal Services
and Reff & Associates, the correspondent law Having a borrower in distress and how to deal
firm of Deloitte Romania, will give you an with it. Know your legal rights, options and
integrated perspective over the dynamics of deadlines
dealing with both financial and legal facets of
the loan restructuring process.  Things you should know about your
borrowers prior to any insolvency related
events
In the current climate, distressed borrowers are
 Preventing insolvency: voluntary
not uncommon, to say the least. From breach of reorganisation versus insolvency
financial covenants to non-payment defaults and reorganisation, inter-creditor agreements,
insolvency threats, borrowers pose new types of the new moratorium law (“concordatul
challenges and require new types of actions. preventiv”)
 Being creditor to an insolvent borrower: a
Restructuring existing loan agreements, requiring focus on observation periods and
additional collateral, tightening contractual reorganization plans (control over the
borrower, permitted payments, new loans,
terms, stricter monitoring of the covenants,
preservation of rights)
grace periods, all useful actions that, however, in
 Insolvency “hidden” threats
many cases, might fail unless supported by
thorough business reviews and restructuring Andrew Grimstone, Partner Reorganization
implementation. Services, United Kingdom
Restructuring best practices
 Value of robust information
 Debtors vs. creditors dynamics (do’s and
don’ts)
 Managing the lenders (syndicated/multiple
bilateral loans)
 UK -EU case studies
 Top tips for achieving a consensual
restructuring
Participation to this event is by invitation only.
You can register via e-mail at:
mciobanu@deloittece.com. Please take into
consideration that due to the limited number of
seats, the first-come-first-served policy applies.
For the event agenda and additional information
on the speakers, please access the following link.
12

13. Reff & Associates is the correspondent law firm of Deloitte Romania, fully
integrated with the Deloitte multi-disciplinary advisory practice and affiliated to a
network of law firms and legal departments working with Deloitte all over the
world. Deloitte’s correspondent legal practice provides assistance to clients in
Romania on various matters pertaining to mergers and acquisitions, corporate
and commercial law, finance, banking and capital markets, real estate, project
finance, employment, competition, fiscal and commercial litigation, and
intellectual property.
In the financial services sector, Reff & Associates provides the full range of services
to banks and financial institutions, including:
- Finance deals: transaction support in bilateral and syndicated loans, loan
workouts, securitisation, loan transfers and assists in drafting and
negotiating the transaction documentation (loan agreements, security and
other ancillary documentation).
- M&A transactions in the financial services sector: advice on the structure
of the transaction, the pre-contractual documentation, due diligence,
drafting/negotiating the purchase agreements and assisting the
implementation of the transaction.
- Regulatory assistance: ongoing assistance with respect to the specific
legal and regulatory requirements applicable to banks / non banking
financial institutions operating in Romania, development of new
financial products, representation in front of the regulators (National
Bank of Romania, Insurance Supervisory Commission, Securities
Commission etc.).
Andrei Burz Pinzaru
Partner
+ 40 21 207 52 05
aburzpinzaru@deloittece.com
Simina Mut
Manager
+ 40 21 207 52 69
smut@deloittece.com
Leontin Trifa
Manager
+ 40 21 207 53 13
ltrifa@deloittece.com
Financial Services Industry Monthly Bulletin 11

14. George Mucibabici
Chairman
tel: + 40 21 207 52 55
e-mail: gmucibabici@deloittece.com
Audit
Santiago Pardo
Partner
tel: + 40 21 207 54 92
e-mail: sapardo@deloittece.com
Enterprise Risk Services
Gary Bauer
Director
tel: + 40 21 207 52 19
e-mail: gbauer@deloittece.com
Financial Advisory
Antonis Ioannides
Partner
tel: + 40 21 207 56 26
e-mail: anioannides@deloittece.com
Tax
Rodica Segarceanu
Partner
tel: + 40 21 207 52 31
e-mail: rsegarceanu@deloittece.com
Legal
Andrei Burz-Pinzaru
Partner, Reff&Associates
correspondent law firm of Deloitte Romania
tel: + 40 21 207 52 05
e-mail: aburzpinzaru@deloittece.com
Consulting
Razvan Horobeanu
Manager
tel: + 40 21 207 53 57
e-mail: rhorobeanu@deloittece.com
Actuarial & Insurance
Solutions
Slawomir Latusek
Consultant
tel: + 48 (22) 511 04 54
e-mail: slatusek@deloittece.com

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