BUCHAREST, Dec. 20(Xinhuanet)-- The Romanian government announced Tuesday that Austria's Erste Bank has purchased 61.88 percent of the country's largest commercial bank, Banca Comerciala Romana(BCR), at a price of 3.75 billion euros(about 4.44 billionU.S. dollars).

Seven foreign banks took part in the bid, and eventually Erste Bank won for offering the highest price. Moreover, the Romanian local media reported that the price would be the highest that western banks have ever offered for purchasing national banks of East European countries.

Romanian Finance Minister Sebastian Vladescu said Tuesday that the privatization of national banks will help the country's banking system compete in the European market.

Mihai Ionescu, secretary of Romania's national import and export association, said the entry of Erste Bank into the local market will promote the development of Romania's foreign trade industry.

However, he also noted that the privatization of BCR was adopted under the foreign pressures.

The Rompres news agency reported Tuesday that by the end of 2004, the total assets of Erste Bank amounted to 152.7 billion euros(about 179.8 billion dollars) and total profit in 2004 was 3.3 billion euros(about 3.9 billion dollars). The bank has 2,365 branches and 12.1 million customers.

Currently, there are 40 banks in Romania, among which the Romania National Bank is the central bank and all the others are commercial banks.

The government holds a controlling number of shares only in BCRand the Romanian savings bank and all the other commercial banks are privately owned or joint ventures with foreign banks. Thus, Romania's banking system is basically controlled by foreign banks at present. Enditem