Alpha Finance lowered target price for Alumil shares
Alpha Finance, the brokerage house that handled the listing of Alumil Rom Industry on the Bucharest Stock Exchange (BVB), has sharply lowered the target price for the shares of the aluminum frames manufacturer, down to RON 1.76/share from RON 3.02/share in April. " We were forced to lower the target price by 40% from the initial estimate for a company we have been lauding it so far, and that delivered some negative surprises instead of capitalizing on its robust economic performance '', Alpha Finance analysts said. (Romanian source)
Bancpost introduced a RON 1.5 monthly management fee for current accounts of for all mortgage loans
Bancpost, the local subsidiary of EFG Eurobank, introduced a RON 1.5 monthly management fee for current accounts in the case of all granted mortgage loans. Banks are trying to come up with alternative sources of revenues after the emergency ordinance on retail loans introduced restrictions regarding the number of fees which can be attached to a loan. The fee is charged also from clients with state-guaranteed loans in the Prima Casa program. The bank kept the granting fee for mortgage loans at 2%. (Romanian source)
ProCredit Bank returned to its clients the 16% tax on revenues from the interests prior to July 1, 2010
ProCredit Bank returned to its clients the 16% tax on revenues from the interests prior to July 1, 2010 for savings products. The revenue tax was deposited in the clients' accounts on August 20, according to the Implementation Norms for the Fiscal Code, published in August 3, 2010. (Romanian source)
Millennium Bank increased the interest rates for RON-denominated three-month deposits opened via Internet Banking
Millennium Bank increased the interest rates for RON-denominated three-month deposits opened via Internet Banking at 8.75% a year and at 8.5% for deposits made at the bank's branches. Also, the interest rate for savings in Euros is now 4.25% a year for three-month deposits opened via Internet Banking and 4% for the deposits made at the bank's units. (Romanian source)
Salaries of NBR employees will drop 25% despite the ECB's warning that this measure is against the Romanian institution's independence
The salaries of NBR employees will drop 25% despite the ECB's warning that this measure is against the Romanian institution's independence. The government found the legal solution which enables the salary cut to be effective, governmental sources said. This solution actually replaces the word " cut '' with " donation ''. In the near future, the money resulted from the NBR salary cut will be put into a special fund at the NBR's budget to avoid a situation in which the Central Bank would help the budget with money directly. However, the institution will later give the money to the state budget by its own will. The Ministry of Public Finance asked the ECB to give its opinion on a governmental emergency ordinance which would change the law regarding necessary measures to reinstate budget balance, which also mentions the 25% salary cut at the NBR, so that the sums saved by the Central Bank would be kept and not delivered to the state budget. (Romanian source)
The aggregated maximum value of potential compensations that the Bank Deposits Guarantee Fund could be forced to pay in case of economic turmoil has reached RON 92.5 billion
The aggregated maximum value of potential compensations that the Bank Deposits Guarantee Fund could be forced to pay in case of economic turmoil has reached RON 92.5 billion. The amount has increased by more than 8.5% compared to June 30, 2009. (Romanian source)
The difficult crisis in Romania had a significant negative impact on non-banking financial institutions
The difficult crisis in Romania had a significant negative impact on non-banking financial institutions (NFI), which have the highest exposure to car leasing and consumer loans. However, despite the increase in the rate of non-performing loans, the NFI sector obtained net revenues from interests, which indicates that they practiced high interest margins, according to the NBR. The central bank also shows that the losses reported by non-banking financial institutions were mostly due to provision expenses and the NBR shows that their profitability may improve in the near future, if the debt collection process becomes more efficient. (Romanian source)
The European Central Bank asked governments to start decreasing public debts
Jean-Claude Trichet, President of the European Central Bank, warned the governments of the European Union that they risk a " lost decade '' of poor economic growth if they kept refusing to address their mounting public debts caused by the financial crisis. The public debts of euro zone governments is expected to be 20% higher this year compared to 2007. (Romanian source)
The European Central Bank is expected to expand until the beginning of next year the emergency aid offered to euro zone banks
The European Central Bank is expected to expand until the beginning of next year the emergency aid offered to euro zone banks, given that the 16 states using the single European currency would run into significant problems in a fresh downturn. The economic growth of the euro zone has exceeded the ECB's expectations. (Romanian source)
Ministry of Finance plans to sell T-notes and T-bonds worth RON 4.6 billion in September
Ministry of Finance plans to sell T-notes and T-bonds worth RON 4.6 billion in September, same as it had anticipated for August, but due to the interests of over 7% charged by banks, the Ministry rejected several lending offers, and borrowed a mere RON 3 billion (over EUR 700 million). Soon, the state will be forced to give up the strategy and go with higher interests to meet its financial obligations, economic analysts polled by Bloomberg said. For the next three years, the Ministry of Finance plans to take loans from external markets under a EUR 7 billion medium-term financing scheme. (Romanian source)
The Government decisions which approved the sale of 15% stakes in Transgaz and Transelectrica were published in the Official Gazette
The Government decisions which approved the sale of 15% stakes in Transgaz and Transelectrica were published in the Official Gazette. The sale pf the two packs is also expected by some brokers who hope the listing of EUR 150 million would manage to trigger an increase in liquidity and in the number of investors. The listing of the Transgaz pack can bring EUR 100 million to the Ministry of Economy. Transgaz is currently one of the most important listed companies on the BSE, with a capitalization of EUR 663 million. (Romanian source)
Hidroelectrica to borrow EUR 117 million from UniCredit Bank Austria to continue the works at the hydro power plants on lower Olt
Hidroelectrica's shareholders decided to borrow EUR 117 million from UniCredit Bank Austria to continue building the hydro power plants on the lower Olt. The decision was published in the Official Gazette. (Romanian source)
OMV Petrom's total investments for the distribution stations are of EUR 4.9 million this year
OMV Petrom made in H1 investments of EUR 1.8 million in marketing, which meant rebranding operations of Petrom stations. OMV Petrom's total investments for the distribution stations are of EUR 4.9 million this year. The company owns 540 stations, and another 2 will be opened until the end of the year. (Romanian source)
Labor unions rejected the last minimum wage offered by the Government
Government representatives put forward a new minimum wage, of RON 650, which the labor unions promptly rejected, calling it " a joke that doesn't even cover the inflation ''. The Government, in its turn, rejected the RON 675 and RON 705 minimum wages requested by the unions. On the other hand, the Government is preparing to overhaul the labor legislation during the upcoming session of the Parliament. (Romanian source)
Analysts say the state administration should not be adapted to the new situations caused by the crisis
Analysts say the state administration should not be adapted to the new situations caused by the crisis. Lucian Anghel, chief-economist of the BCR, stated that he does not believe that a Cabinet reshuffling would influence or change the opinion that investors have of Romania and that it is important to observe the agreement signed with the IMF. (Romanian source)
The members of PSD's National Executive Committee voted unanimously in favor of a new motion of censure
The members of PSD's National Executive Committee voted unanimously in favor of a new motion of censure against the current Cabinet. The text of the motion of censure and the exact date of filing will be revealed to party members in a future meeting of the Committee. Victor Ponta, President of the PSD, stated that the basic goal of the party is to oppose the Basescu-Boc government by every means available. (Romanian source)
