Erste Bank will grant up to EUR 485 million for the shares
owned by the employees of the Romanian Commercial Bank (BCR), at a starting price
of EUR 7.65, offered last year for the take over of the bank's majority stock.
The price will be paid either in cash, with a discount, or as Erste Bank shares.
BCR employees control 8% of the bank's capital. The offer will be made after
the BCR takeover is completed, the deadline being September 21. This year, Erste
Bank will be able to purchase up to 2% of the BCR capital, and up to 3% per year
in the following years. (English source)
UniCredit Leasing and HVB Leasing, subsidiaries of UNICREDIT
Group Romania will merge following the purchase of Bank Austria Creditanstalt
by UniCredit Group. The integration of the two entities will result in Romania's
largest leasing company, with a 14% market share and total net assets exceeding
EUR 500 million at the end of 2006. The merge is currently in a preliminary
phase, the calendar to be set at the end of September. (Romanian source)
British
American Tobacco posts profit increase for 2006, on the Romanian market
" British American Tobacco (Romania) Investment '' SRL has
posted a profit of more than EUR 3.8 million (RON 13,392057) at a net turnover
of RON 359,732461. For the first half of 2006, the group has posted a BP 4.808
million turnover, a 9% growth as compared with the similar period of last year,
and a profit of BP 1.325 million, a 6% growth as compared to the first half of
2005. (Romanian source)
Since the beginning of the month, businessman Ilie Carabulea
sold a 1% Carpatica Bank stock, through the Atlassib transportation company he
controls. Carabulea cashed in almost EUR 1.7 million (RON 6 million) as a result
of the transaction. The sale was the result of several transactions made at the
Stock Exchange, in the " Deal '' section, at a price of RON 0.515 per share.
(Romanian source)
In the first six months of 2006, dairy producer ProdLacta Brasov
has posted a 40% profit increase, to EUR 40,000 (RON 141,000), provided that
turnover has dropped by 5% to EUR 6.3 million (RON 22.3 million). Company investments
in the first six months were worth almost EUR 0.28 million (RON 1 million). The
company's majority shareholder is the Employees Union, with a 51% participation.
(Romanian source)
Romanian
Swine Breeders Union claims Romanian Meat Producers Association promotes
imports to the disadvantage of domestic producers
Swine breeders claim an increase in prices for meat products is not
determined by high costs for raw material, but by the import encouraging policy
of the Romanian Meat Producers Association (ARC), that has lead to unfair competition
on the market. " ARC's promotion of imports in the past ten years has created
unfair competition for domestic products and lead to a decrease in the number
of farms and a lack of investors' interest in the field '', according to a press
release from the Romanian Swine Breeders Union.
Following
EU accession, Romanian SMEs to get co-financing for investments
After Romania's accession to the European Union, Small and Medium-Sized
Enterprises (SMEs) will get co-financing for investments ranging between EUR
200,000 and 7.5 million. As for other financing methods, 80% of SMEs have resorted
to self-financing, according to an analysis of the Romanian SMEs' situation in
2006, made by the National Council for Private Small and Medium-Sized Enterprises
(CNIPMMR). (Romanian source)
SAPARD
program blocks sales of agriculture machinery, says MAT Craiova GM Ionel
Catrinoiu
2005 was the worst of the past 16 years, in terms of agriculture
machinery sales, says MAT Craiova General Manager Ionel Catrinoiu. He claims " Minister
Gheorghe Flutur has blocked the market of agriculture machinery '' through the " Farmer
'' program, started in February 2005 by the Ministry of Agriculture, and officially
launched in October 2005. This program ensured, through SAPARD financing, loans
with a mortgage on the land owned by the farmer. " No farmer bought any Romanian
machinery since the start of the program and up to May this year, because of
this offer '', Catrinoiu ads.
Accor
Hotels Romania makes EUR 35 million investment for Novotel Bucharest City
Center
The EUR 35 million investment in the Novotel Bucharest City
Center is so far the first made by the Accor Hotels group in Romania. Started
in October 2004, the construction phase lasted less than two years, as
the hotel is to function full service as of the end of August. " At the
moment, Novotel is present in 56 countries, and the decision to enter the
Romanian market is due to the area's high potential of the past few years.
The Bucharest hotel market has an occupation quota of 60-70%, higher than
the European average '', said Novotel Bucharest City Center General Manager
Philippe Drivon. (Romanian source)
In the beginning of 2007, Chinese group F&J will open a tobacco processing
factory in Buzau county, following an EUR 20 million investment, made in partnership
with state-operated company China Tobacco, said the F&J President, yesterday.
The group has been producing cigarettes in Romania under the Golden Monkey brand
as of 1997, and under the Dubliss brand, as of last year. Moreover, the company
is negotiating with a third brand. More than 80% of the future production is
destined for European markets. (Romanian source)
Flamingo International is to open, today, a new home appliances and
IT&C shop in the Baneasa Business Center. This is the largest Flanco World shop
in Romania, with a 3,500 square meter surface and over 2,500 products on display.
The development plan for the Flanco World chain includes the opening of two new
locations by the end of 2007, reaching a total number of six shops. (Romanian
source)
Avenir Telecom Sales Manager Mihai Motora estimates 3.6 million mobile
phones will be sold, this year, on the domestic market. The main reasons behind
the market drop are the increase of living expenses, property prices and utility
costs. The Internity mobile phones and accessories retail chain owned by Avenir
Telecom currently has a 5% retail market share. At the moment, Internity has
69 shops and eyes reaching up to 110 shops by July 2007, on the grounds of its
partnership with the Kaufland hypermarket chain. The company intends to open
shops in all the malls and important shopping centers. (Romanian source)
Ministry
of Finance to publish list of Bancorex debtors
The list of Bancorex debtors is at the Authority for State Assets
Recovery (AVAS) and can be made public, said Finance Minister Sebastian Vladescu
yesterday, in the Senate. " From the Ministry's point of view, there is no problem
regarding the publishing of this list '', said the Liberal Minister. Vladescu
draw the Senators' attention to the fact that the recovery of debts, at the time
of the bankruptcy, would mean extra contributions to the budget. (Romanian source)
As of January 1, 2007, Romanians will pay between EUR 10-20 per year
for home insurance against disasters, according to a draft law initiated by the
Ministry of Administration and Interior (MAI). The insured value will be of EUR
10,000 or 20,000, based on the type of housing units. Natural persons benefiting
from social aid will be exempted from this annual insurance tax, that will be
covered by the local budgets, writes the MAI draft law. (Romanian source)
The labeling of cigarette packs is to change as of next year, in
order to contain warnings about the consequences of tobacco use. Cigarette packs
sold in Romania will look the same as those sold on EU territory. The Health
Ministry has passed the last law for the Romanian legislation to be in complete
accordance with the European one, regarding the prevention and control of the
consequences connected to tobacco consumption. (Romanian source)
Traian
Basescu threatens with retaliation if Romanians' access to the EU
job market is restricted
President Traian Basescu has sent a harsh message to European Union
countries, regarding the restrictions that could be imposed on Romanians' access
to the EU job market. The head of state believes the EU job market won't be flooded
by Romanian workers. " I don't think EU states should be worried about a new
flood of immigrants '', the President said. Moreover, Traian Basescu reminded
European leaders of the fact that " work force mobility is part of the very idea
of EU accession ''. (Romanian source)
