IMF: Tests Confirm Soundness Of Romania's Foreign Bks

Stress tests conducted on Romania's nine largest foreign banks confirm the institutions are well-capitalized and possess sufficient liquidity buffers, the International Monetary Fund said Wednesday.

Still, the banks - which include the National Bank of Greece (NBG), UniCredit Group (UNCFF) and Societe Generale (SCGLY) - plan to increase minimum capital adequacy ratios at their Romanian subsidiaries to 10% from 8% as a precautionary measure.

The move aims to "help Romania's banking system to weather the current crisis better, support investor confidence and guide the economy to a sustainable long-term growth path," the IMF said.

Romania earlier this month secured a two-year $17.1 billion IMF loan package to help it deal with a decline in capital inflows and to correct fiscal imbalances. It is among many Eastern European countries that have sought IMF aid in the wake of the ongoing financial crisis.

-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629; [e-mail]