BT's total lending for projects that benefit of European assistance funds amounts to RON 300 million
Banca Transilvania (BT) granted loans of RON 300 million for the joint-financing of projects that benefit of European funds. In the first six months, the aggregated value of these projects stood at RON 150 million, and over 500 customers received assistance from the bank specialists. BT representatives said yesterday that the financed projects this year are in the fields of agriculture, food, metallic products, health, pharma, IT and travel. (Romanian source)
Tradeville analysts have calculated a target price of 12 RON/share for Transelectrica
Tradeville analysts have calculated a target price of 12 RON/share for Transelectrica, considering that the company is overvalued at the present. " Operating in the utilities sector, Transelectrica should be part of the categories of defensive companies, namely those whose financial results are less affected by the economic cycles. Things are not like that for Transelectrica, its turnover fell by 18%, while the net profit fell by 85% in 2009 '', according to the brokers report. (Romanian source)
Remar Pascani wants to borrow up to EUR 15 million
Remar Pascani is planning to secure up to EUR 15 million in financing from various sources, including grants in order to invest in the diversification of its production. The funds are to be paid back in maximum 12 years. The company's shareholders were summoned on August 19 in order to discuss this issue. (Romanian source)
The Romanian economy will contract by as much as 3% this year, the economic growth following to return in the positive territory as late as in 2011, BCR, the largest bank in Romania said. In its latest estimates the bank factors in the effect of the VAT hike to 24%, after pointing to a 0.2% economic growth initially. Given the latest developments in the fiscal environment, BCR sees inflation shooting up to 8.5% this year, and the budget gap will swell to 7.8% of GDP, 1% above the target range agreed with the IMF. Despite bleak inflation outlook after the VAT hike, the National Bank of Romania has decided to leave key rate unchanged at 6.25%. BCR analysts say the central bank will leave the monetary policy rate at current level by the end of the year so as to head off another blow to the recession-hit economy, even though a price hike would trigger a change in the monetary policy. (Romanian source)
Foreign direct investments totaled EUR 1.433 billion in Jan-May period, 2010
Foreign direct investments totaled EUR 1.433 billion in Jan-May period, down 31.5% from the same period of 2009, the National Bank of Romania said yesterday. " Even though data is not encouraging, the performance has been pretty poor, as the deficit swelled 45.7%, year-on-year, due to the lower current transfers. The crash of foreign direct investments to EUR 1.4 billion has left almost half of the deficit uncovered '', said Otilia Ciotau, senior economist at Piraeus Bank. (Romanian source)
MFP borrowed RON 1 billion from the commercial banks
The Ministry of Public Finance borrowed RON 1 billion from the commercial banks for 14 days, at 4.62% per year. The Ministry had also sold on Monday T-bills worth RON 88.9 million, far less than the scheduled value of RON 750 million. (Romanian source)
Romania should switch to a progressive income tax system as of January 1, 2011;
Romania should switch to a progressive income tax system as of January 1, 2011, including for pensions, and should be completed with the VAT drop, said the Ministry of Public Finances, Sebastian Vladescu. The project is in fact an older plan of the Government launched in 2000 and drafted together with Valentin Lazea, senior economist of the National Bank of Romania and Lucian Croitoru, councilor to NBR governor. (Romanian source)
Serban Epure, Director of the Loans Bureau, stated that demand for loans from the population is still weak, including in May and June, following a slight recovery in March, and that there's little chance of a recovery before the end of the year. At the end of June, the Bureau reported 4.2 million active consumer credit accounts, which means that the number of clients who pay up their debts exceeds that of clients who take out new loans. (Romanian source)
Aviva Grup Romania is aiming to improve its services
Aviva Grup Romania is planning to obtain significant results following its effort to improve the services provided to clients, according to Mihai Popescu, CEO of Aviva Romania. The company is investing in infrastructure, technology and the direct sales force, investments which are expected to have a positive impact on the long-term satisfaction of its clients. (Romanian source)
Timisoara City Hall gets confirmation from the EC on financing
The European Commission has confirmed the financing of a project launched by the Timisoara City Hall for retooling the city's heating system. The city will receive EUR 27.1 million in grants, half of the project's total worth, while the Romanian Government will provide 45% of the financing. (Romanian source)
Crin Antonescu: PSD is just as irresponsible as the Government
Crin Antonescu, President of the National Liberal Party (PNL), stated that the Social Democrat Party (PSD) is just as irresponsible as the current Government. The statement was triggered by the PSD's refusal to team up with the PNL in order to provide an alternative to the current ruling coalition. Antonescu added that PNL also wants to rule alone, unencumbered by " heirs of the FSN ''. (Romanian source)
Liviu Dragnea, Secretary General of the PSD, advises liberal leaders to " show more restraint in their statements ''
Liviu Dragnea, Secretary General of the PSD, stated that the Social Democrats will continue to cooperate with the National Liberals in the Parliament, but advised liberal leaders to " show more restraint in their statements ''. (Romanian source)
