FIC says Romania's transport infrastructure needs a significant financial effort, that could be born by the EU
Romania's transport infrastructure needs significant investment, which could be obtained from the EU. The poor state of the local infrastructure makes every trip twice longer than in western European countries, according to the Foreign Investors Council. Shachar Shaine, President of FIC, stated that it's hard to attract investors to a country with poor infrastructure and that driving 1,000 kilometers takes twice as much in Romania as in western European countries. The Foreign Investors Council has provided Romanian authorities with several proposals regarding the improvement of public acquisitions rules governing the road infrastructure in order to help attract more European funding.
New deposits made at Millennium Bank will have lower interest rates
New deposits made at Millennium Bank will have interest rates lower by up to 1% on RON and 0.75% on EUR. For savings in RON, the new value can reach 11% in the case of a three month term. The lowest level of the interest rate is 10% for 9 and 12 month terms. The bank also reduced the interest rate for deposits in EUR. (Romanian source)
Garanti Bank lowered its interest rates for RON-denominated term deposits
Garanti Bank lowered by 0.5%, at 8%, its interest rates for RON-denominated term deposits. The highest interest rate (9.25%) is charged for RON-denominated three-month deposits. The interest rates for Euros have been lowered by 0.25%, at 3.25% - 3.5% a year. Several banks, RBS, Credit Europe Bank and Millennium Bank among them, announced 1.5% lower interest rates this past week after the NBR had lowered the key interest from 7.5% to 7% a year. (Romanian source)
Ionut Dumitru, head economist of Raiffeisen Bank, has been chosen as president of AAFB
Ionut Dumitru, head economist of Raiffeisen Bank, has been chosen, last week, as president of the Association of Financial-Banking Analysts in Romania (AAFBR). Lucian Anghel, head economist of BCR, Bogdan Campianu, director of the capital markets department of Raiffeisen Capital Investment, Nicolaie Alexandru Chidesciuc, head economist of ING Bank and Rozalia Pal, head economist at UniCredit Tiriac Bank, have been named vice-presidents. (Romanian source)
KPMG will audit the annual financial situation reports of BNR for 2009-2013, following a contract won in an open tender by the consultancy firm at the end of last year. The contract is worth EUR 172,500, VAT not included. (Romanian source)
Ministry of Finance borrowed RON 500 million at an average yield of 7.48% a year
The Ministry of Finance borrowed RON 500 million (EUR 121 million) from the banking market at an average yield of 7.48% a year, a new two-year low, according to the NBR data. The maximum yield accepted by the Ministry of Finance was 7.5% a year and the demand for bonds from the 14 banks attending the tender reached RON 1.97 billion (EUR 477 million). (Romanian source)
Rombat Bistrita gets European financing for batteries production facility
Car batteries producer Rombat Bistrita will invest EUR 10 million in the production of batteries for hybrid cars, with half of the money coming from an European financing program. The company is currently working on its own models of batteries for hybrid vehicles and the first prospective client for the new range could well be Ford. Rombat is currently working with Renault and PSA, which are busy developing electric or hybrid cars. (Romanian source)
Bankers proposed 17 measures to stimulate private lending
The Romanian Bankers Association presented a list of 17 measures to stimulate private lending last week to the minister of Finances. Fiscal deductibility of interest rates on mortgage loans, the elimination of VAT on insurances for loans and priority capitalization of the SME Loan Guaranteeing Fund are some of the priorities of bankers. The main growth engine for mortgages will remain the Prima Casa program, for which Finances are working at a new formula to boost the purchase of new houses. (Romanian source)
The BNR carried out a repo operation on Monday, injecting RON 3.09 billion into the inter-bank market, at a 7% interest rate, equal with the key interest. The tender was attended by eight credit institutions. The deposits have a one-week maturity. The Central Bank operation took place as the loans issued by the Central Bank to commercial banks a week before, in a repo operation, had matured. (Romanian source)
KazMunaiGaz to pay EUR 91 million for 24% of Rompetrol Rafinare
Kazakh group KazMunaiGaz will pay EUR 91 million for 24% of Rompetrol Rafinare, the biggest buyout transaction in the history of the Bucharest Stock Exchange (BVB). UDMR Senator Attila Verestoy will get more than EUR 6.4 million for his stake in RRC. ING Romanian Equity, which owns 0.76% of RRC, could get between EUR 2.4 and 2.9 million. (Romanian source)
(ZIARUL FINANCIAR 1 ROXAN PRICOP ANDREI CHIRILEASA) --- Read article here
(ZIARUL FINANCIAR 5 ROXAN PRICOP ANDREI CHIRILEASA) --- Read article here
BNR is taking into consideration a 5% rise in gas fees, 4% on electricity and 5.2% on heating this year
BNR is taking into consideration, in the base scenario regarding the inflation forecast, a 5% rise in gas fees, 4% on electricity and 5.2% on heating. Except for the latter, the other price increases are way over previous estimates made by the Central Bank. BNR foresees a 5.6% variation of prices managed in 2010, The previous estimate, presented in November, indicated a just 2.7% rise on this category. (Romanian source)
Gabroveni Inn to be modernized, turned into Romania's first culture mall
The modernization of the Gabroveni Inn, which is located in central Bucharest, has begun. The inn will be turned into Romania's first culture mall under a project financed by the Romanian Government and through donations made by other European countries. (Romanian source)
Auchan to open its biggest Eastern European hypermarket in the Pallady Shopping Center
" Avrig 35 '' and " Cascade Group '' announced they would begin the construction of the Pallady Shopping Center in the first half of this year. The shopping center will cost EUR 80 million and is scheduled for completion in 2012. The representatives of the two investors announced during a press conference that contracts have already been signed with hypermarkets chain Auchan and sports gear chain Decathlon. The Auchan hypermarket hosted by the new shopping center will be the biggest in Eastern Europe. (Romanian source)
Foreign consortium to build bioethanol plant in Nadlac
Belgian-American consortium New-Energy is planning to build in Nadlac, Arad County, the biggest bioethanol, biofuel and biogas production facility in Romania. Vasile Ciceac, mayor of Nadlac, stated that 34,000 tons of corn will be processed at the facility every year. The investment project will create 100 new jobs in Nadlac. (Romanian source)
UDMR says negotiations regarding the deconcentrated entities are over
Marko Bela, leader of the Democratic Union of Romanian Magyars (UDMR), announced yesterday, February 8, that negotiations with the PD-L regarding the management positions of government institutions have been completed. The names of people designated to head the institutions in question will be announced in the coming weeks. (Romanian source)
Florentin Pandele, mayor of Voluntari, was suspended yesterday from the Social Democrat Party (PSD) for one year, according to a press release issued by PSD Ilfov. The decision was taken by the Standing Bureau of PSD Ilfov. (Romanian source)
PD-L supports the contribution principle and the elimination of special pensions
The National Standing Bureau of the Democrat-Liberal Party (PD-L) voted yesterday in favor of the contribution principle and the elimination of special pensions. Prime Minister and party leader Emil Boc announced that the vote was unanimous. Boc went on to say that all special pensions will henceforth be subject to the contribution principle. (Romanian source)
