Banca Transilvania reported on Wednesday a net profit of RON 33 million for H1/2010
Banca Transilvania's return on investment might drop in H2 and the risk of an increase in non-performing loans and provisions is very high, analysts say. Banca Transilvania reported on Wednesday a net profit of RON 33 million (EUR 8 million) for H1, three times higher from the same period in 2009. However, in Q2 the profit increase reached 71% at RON 17.2 million (some EUR 4 million). The analysts worry about the trend of the non-performing loans and provision costs. " The main concern has to do with the non-performing loans and risk costs. Our opinion is different from that of the market when it comes to an important factor: the negative surprise in terms of non-performing loans comes from the corporate credit sector, not from the consumer credit sector '' says Florin Ilie, the director of the capital markets department at ING Bank. The INF official shows that in H1 the risks costs of Banca Transilvania were 50% higher than during the same period in 2009. The Raiffeisen Capital Investment analysts say the results reported by Banca Transilvania point to a comeback but say they will adjust their estimate regarding the bank's profit this year due to the trading activity result. (Romanian source)
EBRD boosts availability of financing to the real economy in Romania
The EBRD is boosting the availability of financing to the real economy in Romania, with an EUR 50 million credit line to BRD-Groupe Societe Generale for on-lending to private small and medium-sized enterprises and corporates. The credit line is part of a broader financial arrangement provided by the EBRD to Societe Generale's subsidiaries in eastern Europe. (Romanian source)
Flanco's largest lenders and suppliers of the retailer agreed with the board of the company to clear EUR 40 million debt
Flanco's main lenders, namely ING, UniCredit Tiriac and BRD, and the suppliers of the retailer agreed with the board of the company and Insolvency House Transilvania to clear EUR 40 million debt from a total of EUR 60 million, following the insolvency of the company in December 2009. Sources closed to the issue said confirmed banks have reached an agreement with Flanco officials. (Romanian source)
(ZIARUL FINANCIAR 1, 5 ADRIAN COJOCAR ADRIAN COJOCAR) --- Read article here
32.9% stake in Bratim Brasov changed hands yesterday in one deal
32.9% stake in the installation company Bratim Brasov (ticker: BRAY) was transferred yesterday in one transaction, worth RON 797,327. Bratim shareholders will hold a Sharehoders Assembly on August 23, to approve Bratim's commitment to not split throughout the credit line from Eximbank, without the approval by the bank. (Romanian source)
Centrul Medical Unirea posted a turnover of EUR 2.4 million for H1
Private healthcare services operator Centrul Medical Unirea, which is controlled by investment fund Advent International, posted an EUR 2.4 million turnover for the first six months of the year, up 36% compared to the corresponding period of 2009. Among CMU's main competitors are MedLife, Medicover, Sanador and Medsana. (Romanian source)
ING: The IMF might demand this fall that new budget deficit correction measures be taken
The IMF representatives met on Wednesday with five local businesspeople, members of the Romanian Businesspeople Association (AOAR), among them Dinu Patriciu and Ion Alexandru Tiriac, who were asked to speak about the problems they are dealing with and to present their own suggestions for economic relaunch. The meeting was also attended by Florin Pogonaru, the AOAR President, Arin Stanescu, the President of the National Union of Insolvency Practitioners (UNPIR), and Constantin Savu, Vice-President of AOAR and entrepreneur in the automotive and metallurgic industry, where he controls Uzinsider, Comelf and Promex. The IMF might demand this fall that new budget deficit correction measures be taken, say the ING Bank Romania analysts. " The possibility of such a trend is quite high. The current budget deficit targets set by the IMF are based on a 0.5% economic contraction. Normally, any revision of the estimate of the economic trend should be followed by the revision of the budget deficit forecast. However, the statements made by the officials point to the fact that the budget deficit nominal target will remain constant '' say the ING Bank Romania analysts. (Romanian source)
Ministry of Finance plans to borrow RON 4.6 billion from banks through issues of T-bills
Ministry of Finance plans to borrow RON 4.6 billion in August from banks through issues of T-bills, similar to the value planned for July, but widely above the amount lent in this month. The Ministry of Finance lent only RON 1.38 billion in July through state securities issuing, significantly below the initial plans of RON 4.65 billion, as the Treasury tried to keep the average return at below 7%. For August, the Treasury scheduled seven T-bill tenders, of which only two are for state bonds. (Romanian source)
Total value of term deposits slowed down its growth pace in the first half 2010
Total value of term deposits set by natural and legal persons has slowed down its growth pace in the first half 2010 compared to the year-ago period. Data provided by the National Bank of Romania point to a mere 2% advance in the first half 2010, versus nine-fold higher growth rate in Jan-Jun period 2009. On June 30, 2010, the value of RON- and Fx-denominated savings stood at RON 124.8 billion, RON 6.8 billion above the end-2009 level. In the first half last year, customer deposits increased by RON 18 billion to RON 119.13 billion. (Romanian source)
The Romanian state had a debt of EUR 11.5 billion to 21 European banks at the end of March
At the end of March, the Romanian state had a debt of EUR 11.5 billion to 21 European banks, most of them from Austria, France, Greece and Italy, accounting for 28.5% of the public debt (currency plus lei) registered at the Ministry of Finance at that time. Societe Generale, the majority shareholder of BRD, saw at the end of Q1 the largest exposure to Romanian state bonds (EUR 3 billion). Erste Group, which controls BCR, ranks the second in the top of the banks which have financed Romania, with an exposure of EUR 2.49 billion to Romanian bonds in March, accounting for 6.2% of the total public debt. UniCredit is the only Italian bank which has seen a substantial exposure to bonds issued by Romania. Its value reached EUR 1.06 billion at the end of Q1, which has the bank ranking fourth in the top, after Raiffeisen Bank. (Romanian source)
Hidroelectrica announced yesterday the building of a new hydro power plant in Cosmesti, on the Siret river
Hidroelectrica announced yesterday the building of a new hydro power plant, worth RON 618 million, in Cosmesti, on the Siret river. The plant is scheduled for completion in three years. (Romanian source)
Enel began the replacement of the medium voltage power lines from Ilfov and Giurgiu with eco friendly power lines
Enel began the replacement of the medium voltage power lines from Ilfov and Giurgiu with eco friendly power lines. Thus, the number of power cuts will be significantly reduced, and nature and users will be protected. Enel invests over EUR 700 million in the modernization of the electrical network, from the three regions where it operates, Banat, Dobrogea and Muntenia Sud, with the purpose to reduce the number and duration of power cuts and to improve distribution services. (Romanian source)
Emilian Francu, a PNL Senator, stated that 32 MPs from the Democrat-Liberal Party (PD-L) are currently negotiating with the National Liberals (PNL) and the Social Democrats (PSD) their support for the motion of censure and, implicitly, their departure from the PD-L in order to join the ranks of the two opposition parties. The 32 do not belong to the old guard of the PD-L, but are newer and younger members, who are disenchanted with PD-L's style of liberalism. (Romanian source)
The Social Democrat Party (PSD) has called for the emergency resignation of Mihail Dumitru, the Minister of Agriculture, saying that the Minister is " out of his depth '' and that the losses reported by farmers defy the imagination in their scope, according to Senator Olguta Vasilescu. (Romanian source)
PSD could win 38.8% of the vote, according to new INSOMAR poll
According to INSOMAR poll, commissioned by cotidianul.ro, PDL fell to third in terms of vote intentions, if elections were held next Sunday. PDL fell to the lowest quota in polls, of merely 13.7%. PSD took 38.8% and PNL 21.1%. Mugur Isarescu remains the most trusted person in Romania, but not even him could keep the quotas he recorded in the previous polls. Thus, 50% Romanians say they have little trust in Mugur Isarescu, and 15% don't trust the governor. Only 22% Romanians said they trust the governor a lot. (Romanian source)
