The Foreign Investors Council stated that the Government should implement a wider package of measures in order to increase the efficiency of the public sector and stimulate investment
The VAT hike will turn Romania into one of the countries with the highest VAT in the European Union and discourage investments, which means that the Government should implement a wider package of measures in order to increase the efficiency of the public sector, stimulate investment and offset the negative effects of the VAT hike, according to the Foreign Investors Council. The Council voiced its disappointment with the Government's decision and its belief that it would have a negative impact on the economy.
MobilPay: Over 300 online retailers accept payments in installments without interest rate
In order to draw in clients in times of crisis, more and more companies in online retailing will adhere to the system of payments in installments without interest rate. According to the data of Netopia Sistem, over 300 retailers will offer clients this method of payment. eMAG, the largest online store in Romania, specialized in the sale of electroIT products, is the first to implement this system of payments, in a partnership with GE Garanti Bank. (Romanian source)
ECB lent EUR 131.9 billion to the banks in the region
The European banks, which have become dependent on the ECB loans, have borrowed EUR 131.9 billion on three months from the institution via a facility which replaces the emergency crediting program launched last summer and which expires today, July 1. The demand for three-month loans " points to how stressed the system is '' said Juergen Michels, Chief Economist for the Eurozone at Citigroup in London. (Romanian source)
NBR: The volume of business loans saw a 4.6% annual growth rate in May 2010
According to the NBR, the volume of company loans went up 4.6% in May 2010 at RON 100.3 billion amid a 10.1% increase in foreign currency financing at RON 61.5 billion. The surge in loans for the corporate sector is due to the increase of company loans in Bucharest. Their volume hiked 19.3% at RON 41.8 billion. On May 31, 2010, almost three quarters of the loans were issued to companies in Bucharest in the shape of foreign currency loans. ING Bank Romania President Misu Negritoiu says the bank he manages will try to support the SME sector which currently represents 2.8% of the client portfolio. A real estate loan and a production loan will be launched for them in 2010. (Romanian source)
BRD resumed the promotions for packages of products and services available for people involved in liberal professions
BRD resumed the promotions for packages of products and services available for freelancers in an attempt to stabilize its revenues as the market does not manage to make a comeback. " These packages will be distributed via the existing network. We have dedicated advisers but so far they were in charge with SMEs mainly '' said Lucian Cojocaru, the executive director of the commercial department at the BRD. The bank has 930 units, the second largest network in the banking system after CEC Bank. BRD does not charge fees for the opening of current account but charges a monthly fee of EUR 0.7 (RON 1.6) for their administration. The opening of current accounts is free of charge at BCR and the management fee is RON 2.5 a month. The bank charges the depositing of cash into the accounts of other clients with RON 4 - RON 10. (Romanian source)
Equity boost at Banca Transilvania delayed because of the court file opened by SIF Banat-Crisana
The Banca Transilvania equity boost is the largest operation of this type carried out in the last two years on the Stock Exchange (BVB). The bank's managemers are planning to attract RON 120 million (EUR 27.4 million) in cash from shareholders, in order to fund the bank's operations. Preference rights for the capital raising should have already been transacted on the Stock Exchange, and the subscription should have closed at the end of July, but because of the court file opened by SIF Banat-Crisana the operation will be delayed at least until September, when the first hearing in court is scheduled. SIF Banat-Crisana attacked in court the capital raising of RON 391 million (EUR 90 million), approved by the shareholders of Banca Transilvania in April 2009. (Romanian source)
Czech power company CEZ has started work on the Cogealac-Dobrogea wind power park, three months behind scheduled, following the completion of work on the 115 turbines of the Fantanele wind power park. Beyond the EUR 1.1 billion park, which the Czechs are building at Fantanele and Cogealac, CEZ is also planning to build a gas-fired plant in Galati through a joint project with Termoelectrica. The company is also discussing with the Romanian Government the issues of CFR's debts and the building of two new reactors at the Cernavoda nuclear plant. (Romanian source)
The sale of the minority packs owned by the state at energy companies might attract EUR 2 billion
The sale of the minority packs owned by the state at companies that are listed and that aren't listed on the BSE, from the energy field, might attract EUR 2 billion, a double against the amount that was estimated by authorities, according to financial analyst Lucian Albulescu from KBC Securities, in a conference regarding listing at BSE. Energy companies that are listed to BSE are Petrom, Transgaz, Transelectrica, Conpet, Oil Terminal and Romgaz. (Romanian source)
Harsh criticism regarding the VAT increase and the way this decision was made
MOL representatives say they are forced to act as in a force majeure situation as the government gave companies too short a period of time to implement the VAT increase. American companies recommend authorities to review the decision or at least to limit its application to 2010 and talk about the major difference between politicians and the private environment. According to players on the market, the VAT increase by 5% will lead to a rise of prices at the pump of 4-5%. Other big players on the market are Petrom, Rompetrol, Lukoil, Eni Romania and OMV Romania. (Romanian source)
The European Commission decided to fine 17 European steel producers, including ArcelorMittal and Voestalpine
The European Commission decided to fine 17 European steel producers, including ArcelorMittal and Voestalpine, a total of EUR 518 million for being involved in cartel-type activities: price fixing in most of the EU member states for the past 18 years. The bulk of the fine, EUR 276 million, was imposed on ArcelorMittal, the biggest steel group in the world. Voestalpine was fined only EUR 22 million and denied any involvement in the price fixing scheme. (Romanian source)
Several retail networks in Romania announced that they wouldn't increase the prices of products, despite to the 5% growth in VAT
Several stores decided not to increase the prices for certain products, among which Billa, which will keep the same prices for 1,200 products, that is 15% to 25% of the stores' product range. Billa has also launched the program entitled " BILLA Romania freezes the VAT! '' on July 1. Moreover, Metro Cash&Carry Romania will compensate the VAT increase by offering a 4.04% discount for the respective products. Real Hypermarket Romania will also keep the price unchanged, but only during the promotional period between July 1 and 14. The announcement of the VAT increase came after the printing of the promotional catalogues of large retailers, so that they will either have to bear the VAT difference themselves for as long as these catalogues are valid or to suspend the distribution of these catalogues and announce the modifications to the clients. Romanian source)
Access to European funds is conditioned by observing deficits and indebtedness caps
European Union governments should lose access to EU funds and and be forced to deposit money with the European Commission if they break the rules limiting the budget deficit and indebtedness caps, according to a proposal of the EC. The proposal is part of the EC block's efforts to toughen up the budget regulation rules and prevent a new sovereign debt crisis like the one in Greece. (Romanian source)
CE Craiova invests EUR 96 million in sulfur removal system at the Isalnita plant
Complexul Energetic Craiova will organize on August 25 an open tender in order to designate a company that would design, produce, install and commission two installations for the removal of sulfur from burnt gases at the seventh and eighth units of the Isalnita power plant. The project will cost EUR 96 million. The three Oltenia-based CEs, Turceni, Rovinari and Craiova, cover between them a third of Romania's electricity output and produce the cheapest electricity, after Hidroelectrica and Nuclearelectrica. (Romanian source)
MedLife announced the completion of the takeover of 80% of the Policlinica de Diagnostic Rapid SRL from Brasov
MedLife announced the completion of its takeover of 80% of Policlinica de Diagnostic Rapid SRL from Brasov, one of the main private healthcare services operators of the local market. The transaction exceeds EUR 3 million and is the biggest acquisition of a local medical supplier in the last 2 years, ran by another operator. In the second half of this year, MedLife is planning to step up its investment in two other hyperclinics located in Bucharest and expanding the Life Memorial Hospital. (Romanian source)
The Lidl&Schwarz group ranks fifth in the Deloitte index of the world's top retailers
Retail giants Lidl, which is locked in combat with Aldi for supremacy on the European market, announced the beginning of work on its first Romanian stores. The retailer has prepared 25 sites for the building of the first Lidl stores, aside from the 100 Plus stores bought from Tengelmann at the beginning of the year, according to data provided by local authorities. (Romanian source)
Akzo Nobel in talks for buying Romanian paint producer
Dutch group Akzo Nobel, the world's biggest producer of paint, is holding talks with several investment funds in order to acquire a Romanian paint maker. The transaction is expected to be completed in 2011, at the earliest. The company has more than 50 distributors in Romania and is working together with the big DIY chains. (Romanian source)
Beginning today, July 1, the 5% hike in VAT pushes up the prices of consumer products by at least 8%
Beginning today, July 1, the 5% hike in VAT pushes up the prices of consumer products, such as food, clothes and fuel, by at least 8%. The prices of non-food products (cigarettes and alcohol) will also increase. (Romanian source)
Prime Minister Boc sent PD-L ministers to the flooded regions
The leaders of the Democrat-Liberal Party (PD-L) who are also ministers in the current Cabinet were told to visit the regions hit by floods. Prime Minister Boc himself asked the members of the Cabinet to travel to the affected counties in order to help prevent the loss of human lives. (Romanian source)
The joint report of the legal and human rights commissions regarding President Basescu's request to review the charter of the National Integrity Agency (ANI) was passed yesterday, June 30, by the Senate. The report contains only two of the six major points of the review request. (Romanian source)
