Member Run Closes Romania's Biggest CU

June 08, 2000, 1:00 a.m. EDT 1 Min Read

- BUCHAREST, Romania (06/08/00) - The nation'slargest credit union, known as Banca Populara Romana, shut itsdoors and suspended payments to members for up to six monthsbecause of massive member withdrawals. The run on deposits camedays after a depositor panic shut one of the nation's largestbanks. The depositor panic as the World Council of CUs (WOCCU) isworking with Romanian officials to draft new credit unionlegislation, which is expected to be introduced by the end of themonth. WOCCU received a $2 million grant from the US Agency forInternational Development (USAID) last year to help modernize theRomanian credit union system and certify the safety and soundnessof the institutions.

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