BCR issued Prima Casa loans worth more than EUR 1 billion
BCR issued Prima Casa loans worth more than EUR 1 billion, while supporting the purchase of a home for 25,000 young families. During the fourth phase of the program, the average value of a loan ranged between EUR 37,800, less compared to the EUR 41,200 that had been reported during the previous phase. The average value of the down payment made by clients reached 10%. The banks supporting " Prima Casa 4 '' have sold 23,000 loans with a total value of EUR 855 million. (Romanian Source)
DTZ Echinox says banks changed their attitude toward real estate customers
According to real estate consultancy company DTZ Echinox, banks changed their strategy in real estate, forced by the crisis, but a market increase depends on such a change. Cristian Ustinescu, Investments Director with DTZ Echinox, stated that banks should reconsider their relationship with the investors and developers in order to give the real estate market a chance to grow. (Romanian Source)
Broker Cluj released turbo certificates on the Dow Jones Industrial Average Index
Broker Cluj released turbo certificates on the Dow Jones Industrial Average Index, while aiming to take a bite out of the market of structured products which is currently dominated by Erste-BCR and by the turbo certificates of the DAX German Index. One hour before closing of the trading session, the Dow Jones certificates (BKDOWTL1 and BKDOWTS1) reported exchanges worth EUR 31,500, more compared to the shares of Transelectrica, Transgaz or Broker Cluj. (Romanian Source)
(ZIARUL FINANCIAR 6 STEFAN MUSGOCIU ANDREI CHIRILEASA) --- Read article here
Five individuals arrested on cards forgery charges
Five individuals were arrested following a raid on their homes, where the police found 630 false cards, devices to manufacture false cards and large amounts of money. The five would send the cards to France, where members of the ring bought various goods, which were then sold in Romania. (Romanian Source)
Intesa Sanpaolo closed Q1, 2012 with losses of EUR 14 million
Intesa Sanpaolo, the local subsidiary of one of the largest Italian banks, closed Q1, 2012 with losses of EUR 14 million, seven times more compared to the losses that had been reported during the same 2011 period and in line with the higher provision costs generated by default loans. Sanpaolo's balance of loans remained at around EUR 800 million, a constant value in 2011. 84% of the loans granted by the bank are retail, most of which denominated in foreign currency. Also, the total volume of deposits attracted from clients froze during Q1, to EUR 0.5 billion, after the bank has reported a growth of EUR 200 million over the last two years. (Romanian Source)
Ministry of Economy to increase oil companies' taxes
The Ministry of Economy is drafting a bill that would increase the taxes and royalties paid by oil companies. " The law will not come into force in 2012, but in 2013, '' said Minister Chitoiu. The Minister added that one of the things considered by the local authorities is increasing royalties to the European level. The leading players of the local oil&gas industry are OMV Petrom, Rompetrol (owned by Kazakhstan's KazMunaiGas), Lukoil (Russia), MOL (Hungary), Eni (Italy) and Romgaz Medias. (Romanian Source)
European Investment Bank granted Romania loans worth EUR 917 million last year
The European Investment Bank granted loans worth EUR 917 mmillion last year, representing only 1.5% of the total financing offered by the institution in 2011, that totaled at EUR 60.9 billion. The credit lines contracted from EIB last year totaled at EUR 125 illion, 75 million of which were signed with BCR, 30 million with BRD-Sogelease IFN and 20 million with ProCredit Bank. (Romanian Source)
The current account deficit decreased by 43.7%, to EUR 544 million, during Q1, 2012, compared to the same period last year, according to a press release made by the National Bank of Romania (BNR). The decrease was supported by the 52.2% increase of the glut of current transfers and by the decrease of the balance of revenues' deficit by almost 25%. ING Bank Economist Vlad Muscalu states that the 40% decrease of the deficit was normal, as it followed the 160% growth reported during the two months of he year. (Romanian Source)
The European currency rose again yesterday, May 16, against the RON and the National Bank of Romania (BNR) posted a reference exchange rate of RON 4.4463 for the Euro, up RON 0.0052 from the previous trading session. At the end of yesterday's session the Euro was bought for RON 4.4385 and sold for RON 4.4400. The US dollar gained RON 0.0411, reaching a reference exchange rate of RON 3.4987. (Romanian Source)
Deputy PM Florin Georgescu: The local banking system is solid despite the Greek situation
Deputy PM Florin Georgescu said that the local banking system was solid and well capitalized, despite the Greek context, and that it was unlikely for the local authorities to use the bridge-bank. The latter is an instrument introduced recently by the National Bank of Romania (BNR) for banks reaching difficulties. Six Greek banks are active in Romania: EFG Eurobank (Bancpost), Alpha Bank, Piraeus Bank, National Bank of Greece (Banca Romaneasca), Emporiki Bank (owned by Credit Agricole) and ATE Bank. (Romanian Source)
Real estate developers urged to use their own funds
Credit institutions will only finance sustainable real estate projects that pose little risks, bankers say, while real estate investors estimate that developers should use their own funding for the construction works, while projects should be refinanced, using the help of credit institutions, upon completion. These are some of the conclusions put forward by real estate experts attending the " New trends in real estate financing '' seminar organized by " Ziarul Financiar '' and law firm Reff&Asociatii. (Romanian Source)
(ZIARUL FINANCIAR 3, 15 Cristi Moga GABRIEL RAZI) --- Read article here
Danone Romania, Danone Ecosystem and Heifer invest in Romanian family farms
Danone Romania, investment fund Danone Ecosystem and Heifer will invest EUR 2.1 million in 800 family farms (which own only one or two cows each) in order to increase the quality of milk to European standards by 2013. Part of the funds, EUR 500,000, will come from the European Union. Danone has invested during its 15 years of doing business in Romania, more than RON 300 million n the Fundeni plant and in its own brands. Last year, the company's turnover reached RON 503 million, up 5.7% year-on-year. (Romanian Source)
Apulum Alba Iulia, a producer of porcelain wares and one of the main local suppliers of Swedish consortium IKEA, posted for the first quarter of this year a turnover of RON 17.4 million, up 45% year-on-year. The company budgeted for this year a total turnover of RON 80 million, up 20% year-on-year. " The market trend is stationary, but demand from abroad keeps growing. We are holding advanced negotiations with IKEA to resume production in the second unit of our plant, '' said CEO Ioan Voican. (Romanian Source)
Minister of Agriculture promotes food VAT reduction
The Minister of Agriculture, Daniel Constantin, stated that he would negotiate this summer on different terms with the IMF delegation in order to convince it that the reduction of food VAT would benefit the state budget. By May 15, the Agriculture Payments and Intervention Agency has received 33,615 applications for the 2012-2013 campaign of subsidies, regarding more than 5 million cattle. (Romanian Source)
Government to recover more than half of funds allocated to PD-L and UDMR mayors
Prime Minister Victor Ponta announced that the Government would recover more than half of funds allocated by the previous Cabinet to mayors belonging to the Democratic-Liberal Party (PD-L) and the Democratic Union of Romanian Magyars (UDMR). The RON 387 million that the Government wants to recover will be used for social projects. (Romanian Source)
Hungarian ambassador to urge unity in Targu-Mures mayoral race
The Hungarian Ambassador to Bucharest, Oszkar Fuzesi, stated yesterday in Targu-Mures that he would talk about unity with the candidates for mayor of the three Magyar parties. However, the Ambassador noted that unity itself is up to the Magyar community of Targu-Mures. Fuzesi has met with independent candidate Smaranda Enache, with Dorin Florea, the incumbent, and with Benedek Imre, candidate of the Magyar Civic Party (PCM). In the afternoon, Fuzesi met with Senator Gyorgy Frunda, UDMR's man in the race. (Romanian Source)
Former Prime Minister Ungureanu attended launching of PD-L candidates in Zalau
Former Prime Minister Ungureanu attended yesterday in Zalau the launching of PD-L's candidates for the local elections of the Salaj county. " What we want is to relaunch the Right, to regroup and to show that this is the true path for the country, '' said Ungureanu. The former Prime Minister added that " we '' means those who vote for the PD-L and UDMR, but also those " who have not been voting for years because they can't fund themselves in the noise of Romanian politics ''. (Romanian Source)
