Foreign Investors Council: In Romania, the average speed of trucks is 35 kilometers per hour
Driving 1,000 kilometers lasts twice more in Romania than in Western European countries. This is one of the biggest problems that investors looking to open a business in Romania have to face. According to the Foreign Investors Council, the average speed of trucks in Romania is 35 kilometers per hour, compared to 60-70 kmph in Western Europe.
Mariana Gheorghe, President of the Foreign Investors Council, stated that predictability and transparency are critical issues for the business community
Mariana Gheorghe, President of the Foreign Investors Council and CEO of OMV Petrom, Romania's biggest private company, stated that predictability and transparency are critical issues for the business community. This reaction on the part of the Foreign Investors Council was triggered by the frequent changes of the fiscal policy made by the Government over the past months.
Banca Transilvania posted a net profit of RON 17.2 million for Q2
Banca Transilvania posted a net profit of RON 17.2 million (EUR 4 million) for Q2, up 71% from the same period in 2009 and only RON 1.2 million above the profit seen in Q1. Although the foreign currency credits account for only 38.3% of its total portfolio, Banca Transilvania says the depreciation of the RON against the Euro is the cause of the surge in loan payments more than 90 days fallen behind. They reached almost 6% of the total, almost double from a year ago. In H1, Banca Transilvania saw a net profit of RON 33.2 million (EUR 8 million), three times higher compared to the same period last year. The bank management characterized the H1 results as " satisfying '' given the current economic situation. " Our liquidity and solvency indexes continue to be comfortable, much above the limits set by the NBR '' said Robert Rekkers, the general manager of Banca Transilvania. (Romanian source)
BCR will launch the Personal Banking service at the end of this month. Thus, a BCR personal adviser will inform clients on investment and credit possibilities. Through this service, the bank will offer investment, treasury, asset management services and customized cards. The service is dedicated to clients who have assets worth EUR 40,000 - EUR 200,000, to those who have a monthly income worth between EUR 1,500 and EUR 10,000 and people with liberal professions (doctors, notaries, lawyers, accountants, veterinarians, architects, dentists). Also, RBS Bank and Citibank offer customized banking services to clients with high wages or important financial assets. BCR, a member of the Erste Group, is the main banking institution in Romania and manages assets of more than EUR 16.4 billion. (Romanian source)
GE Garanti Bank and WWF are launching the WWF Bonus Card
GE Garanti Bank and environmental organization WWF (World Wide Fund for Nature) announced the launch of the WWF Bonus Card, especially designed for those who want to contribute to environment protection in Romania. GE Garanti Bank will offer 0.5% of the value of the shopping paid with the WWF Bonus Card to WWF to support nature protection and preservation projects in the Carpathians, along the Danube and the Danube Delta and to help promote durable socio-economic development and a lifestyle that would have a low impact on the environment. (Romanian source)
Radu Ghetea, chairman of ARB: Banks will reschedule public sector workers' debts
The public wage cut will boost the NPL ratio in the banking system in Romania, said the chairman of the Romanian Banks' Association. Banks are ready to propose borrowers a loan deferral, so as to help them cope with the income decline. According to data from the National Bank of Romania, loan arrears increased by 7.85% in June, compared to the previous month, to RON 13.63 billion. (Romanian source)
BRD got a credit line of EUR 50 million from the EBRD for SME loans
BRD got a credit line of EUR 50 million from the EBRD for SME and corporate loans. The financing line will be used to grant loans to companies for investments and working capital. The EBRD, the World Bank and the EIB committed to granting EUR 25 billion to support the banking system in the region. In the past BRD benefited from financing lines worth EUR 121 million from the EBRD. (Romanian source)
Ministry of Economy passed aid transparency scheme for SMEs
The Ministry of Economy, Trade and Business Environment has passed the aid transparency scheme for SMEs. The aid will be in the form of state guarantees for credit portfolio, as part of the JEREMIE initiative in Romania. The authority responsible for the management of the scheme is the European Investment Fund, the provider of the minimis aid being MECMA, via the POS Management Authority for the boost in economical competition 2007-2013. (Romanian source)
Lending recovery delays, putting a crimp on the recovery of the economy at large, businessmen say
Lending recovery is lagging, against all the optimistic views, hindering the recovery of the economy at large, businessmen say. Representatives of the economic environment say banks lend the state and have no other interest in investing their money into an economy that is not reliable. Bankers say the risks of lending a company are higher than two years ago. The reticence in lending the real economy is reckoned by the persons in the system. (Romanian source)
(FINANCIARUL 1, 4 Victor RUSU Liliana POPA Victor Rusu Lilina Popa) --- Read article here
Candole Partners sees a 4.6% drop in retail sales this year
Retail sales will fall this year in Romania by 4.6%, while Bulgaria will see a 6% contraction, according to a study conducted by consultancy and market research firm Candole Partners. The study is based on statistical data provided by the Macroeconomic Database for Emerging and Developed Markets. (Romanian source)
Franklin Templeton plans to buy real estate assets and stakes in Romanian realtors
Franklin Templeton plans to buy real estate assets and stakes in Romanian realtors, saying that the market is being undervalued and will develop in the future once lending is resumed. Mark Mobius, the president of Franklin Templeton Investments, said that although the court of law approved the beginning of insolvency procedures for Impact Developer&Contractor, where Franklin Templeton owns 6% of the capital, the respective companies have very high assets. The Franklin Templeton executive said there are many investment opportunities in the Romanian real estate sector. (Romanian source)
(ZIARUL FINANCIAR 1, 5 ANDREI CHIRILEASA ANDREI CHIRILEASA) --- Read article here
Alenia Aeronautica and SAAB offer to invest EUR 1 billion in Romania's economy provided that the Romanian Government agreed to buy their fighters
Italian company Alenia Aeronautica has upped the ante in the competition for the acquisition contract for fighter planes, which is being discussed by the Romanian authorities. The company offered to invest EUR 1 billion in Romania's economy should the Government agree to buy 24 Eurofighter planes, produced before 2004, which matches the acquisition bill. The same offset package is offered by Swedish company Saab, which produces the Gripen fighters. The two rivals hurried to make their offers as attractive as possible, following the Supreme Defense Council's (CSAT) decision to endorse the acquisition of F-16 planes from Lockheed Martin. Giuseppe Paoletti, Eurofighter's Campaign Manager in Romania, stated that Romanian laws stipulate that such contracts should come with some form of economic offset.(Romanian source)
Eldon, a producer of industrial boxes and lockers, is planning to keep hiring until the end of this year
Eldon, a producer of industrial boxes and lockers, is planning to keep hiring until the end of this year. Eldon works at European level with Honeywell, Nokia, Kraft, Nestle, Alcatel-Lucent, Pepsico and Siemens and exports most of the products manufactured in Romania to Western European countries. (Romanian source)
Starting this summer, Samsung Electronics Romania's clients will benefit from new services and products faster as the company's new operational structure is released
Starting this summer, Samsung Electronics Romania's clients will benefit from new services and products faster as the company's new operational structure is released. In the last year, the company introduced several technologies meant to decrease the impact of its devices on the environment, according to Lucian Ghitescu, Samsung Electronics Romania' Home-Appliances Division Manager. The company will continue to consolidate its home-appliance business by releasing high-end products like the new Sveta refrigerator series. This will stimulate demand and will position Samsung in the Top 5 Brands by the end of the year. Samsung will also release several buy-back campaigns in the near future. (Romanian source)
The Government will pass on Monday the norms for enforcing the amendments to the Fiscal Code, even though these norms were supposed to have been passed by Wednesday
The Government will pass on Monday the norms for enforcing the amendments to the Fiscal Code, even though these norms were supposed to have been passed by Wednesday. The norms went through a series of modifications, especially when it came to the taxing of independent activities. Sources close to the Government stated that the Ministry of Finance and the Ministry of Labor had argued about some of the stipulations. (Romanian source)
