BANCA TRANSILVANIA S.A. Romanian joint-stock company ...

4. RISK FACTORSA section entitled “Risk Factors” shall set forth the risk factors which could impair theIssuer’s capacity to fulfil its obligations to investors arising from its securities.Any investment in the Bonds or Shares represents risk. Before making an investmentdecision, potential investors should read this Prospectus carefully. Investors shouldcarefully consider the risks presented below. The risks identified in this Prospectus arebelieved to be important risks (but not necessarily all of the important risks) related to theBank, the Bonds and the Shares. Additional risks not presently known to us or that wecurrently deem immaterial may also impair the Bank's operations, performance of theGroup and may lead to a decrease in the price of the Bonds or Shares.The Bank's business, financial situation or results of operations could suffer materialadverse effects caused by any of these risks. The trading price of the Shares could alsodecline due to any of these risks, and you may lose all or part of your investment.Investors are further advised to make their best efforts to perform their own assessment ofthis investment opportunity.In this section, the order of presentation and risk factors is a random order and not aprioritized one.4.1. Risks related to RomaniaRomania is an emerging marketRomania is an emerging market, therefore potential investors in Bonds and Shares shouldbear in mind that such a market poses a higher level of risk as compared to more developedcountries. The main country-specific downside risks in 2013 relate to the continuingdomestic political uncertainties that could increase financing costs and hold backinvestment. Emergent countries, such as Romania, need an adjustment to the legislativeprocess, so as to ensure a stable framework fostering a balance between consumer andinvestor interests. The process to this stable framework may extend over a long time span,whereas Romania may undergo a chain of sudden and unanticipated changes at political,legal, social or economic level, including periods of economic recession, material changesor legislation amendments, increased inflation rates, governmental instability, austeritymeasures taken by the Government or the State’s interference within the main infrastructureareas (including, without limitation, contributions requested by the Government).General - Emerging MarketsThe Romanian economy is currently in transition to a market economy, and the Romanian41