The Government allows the extension of provisional mandates at the helm of BID

On Thursday, the government adopted a decision allowing the interim terms of the leadership of the Investment and Development Bank (BID) to be extended if the procedures for selection, appointment and approval by the National Bank of Romania are not completed on time. The measure aims to prevent the bank’s operations from being disrupted before permanent management is installed.

In the case of the Supervisory Board, the interim term may be extended by no more than eight months beyond the initial period of up to 12 months. The total duration may not exceed 20 months and applies only if the selection procedure and approval of the appointed individuals have not been completed.

For members of the Executive Board, two separate extensions are provided for, which may take place successively. The first may be granted if the selection of the Supervisory Board has not been completed, and the second, after the appointment of the new Board, if the selection of the Executive Board is not finalized. Thus, the total duration of the interim arrangement may reach 28 months.

At present, interim terms are limited to 12 months. The government justifies the amendment by citing the duration of the administrative and prudential stages. The NBR has up to four months to assess a complete file, a period that may reach six months if additional information is requested. Extensions are not granted automatically and end once the procedures are completed.