BCR BpL sealed 165,000 savings&loans contracts for the residential sector by June 30
BCR BpL sealed 165,000 savings&loans contracts worth RON 4.6 billion for the residential sector by June 30. The average value of these contracts ranges between RON 25,000 and RON 30,000. BCR BpL says this year it has become a market leader based on the number of active savings&loans contracts. (Romanian source)
40 largest brokerage houses active on the stock market sacked 410 employees last year
40 largest brokerage houses conducting trading activities at the Bucharest Stock Exchange sacked 410 employees last year of a total overall headcount of 1,300 in 20008, in an attempt to cut costs enough so as to offset the dramatic slump in revenues, amid a poor investor interest in stock trading. BT Securities, the brokerage arm of Banca Transilvania, that brokered around 10% of total stock transactions at the Bucharest Stock Exchange, reported revenues of RON 6.6 million, down 19%, and a profit before tax of RON 0.43 million, after sacking 25 employees. (Romanian source)
(ZIARUL FINANCIAR 1 ANDREI CHIRILEASA ANDREI CHIRILEASA) --- Read article here
(ZIARUL FINANCIAR 5 ANDREI CHIRILEASA ANDREI CHIRILEASA) --- Read article here
BSE board approves the introduction of Raiffeisen Centrobank market-linked products in the trading arena
The board of the Bucharest Stock Exchange has approved the listing of market-linked products issued by Raiffeisen Centrobank, this being the second credit institution to list this category of securities at the BSE. Erste Group, the majority shareholder of BCR, listed last week nine series of certificates with gold, oil and DAX index as base assets. The certificates will be index and turbo. (Romanian source)
Provus, a Turkish provider of cards processing services, has bought local company RomCard, which is controlled by four major banks, BCR, BRD, UniCredit Tiriac Bank, Raiffeisen Bank, plus Financiara, a member of the BCR group. The transaction was estimated at several millions euros. RomCard had a turnover of RON 5.6 million last year. (Romanian source)
SIFs were much more reluctant in selling their holdings
The five financial investment companies were much more reluctant this year in selling their holdings, as the few transactions didn't cover the decline in dividends received from banks. After the first half, the profit of the SIF are 70% lower year-on-year. Three SIF (SIF3, SIF4 and SIF5) released data on their assets for the first six months. SIF Oltenia reported the biggest profit of all the three SIFs, of RON 51.6 million, and 71% lower than the year-ago period, when SIF5 sold the holdings in Automobile Craiova and Bancpost. (Romanian source)
Argus Constanta posted net profits of RON 4.4 million for Q1, 2010
Argus Constanta posted net profits of RON 4.4 million for Q1, 2010. The Constanta-based producer of sunflower oil also reported a turnover of RON 37.7 million, up 38% compared to Q1, 2009. According to a MMRB study, the edible oil market is headed by Bunge, while Argus and Cargill are competing for second place. (Romanian source)
Banks will no longer be restrictive with the issuing of loans for the public and private sector in the near future
Banks will no longer be restrictive with the issuing of loans for the public and private sector in the near future even if the industry association have announced they expect to see bankruptcies and plunging turnovers due to the VAT increase and job cuts, said the representatives of the credit institutions. The Coface Romania representatives said last week that the taxation increase will lead to a shrinking consumption and lower sales for companies, with an increased pressure on the private sector. In the absence of positive economic premises, lending will remain restrictive, the Coface analysts said. In May, the volume of the non-governmental loan amounted to RON 203.11 billion, up 1.4% from the previous month and up 2% from May 2009, according to the NBR data. Lucian Oana, SME sales manager at OTP Bank, said the banks are more open when it comes to issuing loans adding that " it's true that for an investment in agriculture the banks are demanding a higher downpayment so there is little demand on this segment ''. The OTP representative said that the average interest for credit lines is on a downwards trend. (Romanian source)
Petrom's CSR projects tend to focus on the company's own employees, according to CEO Mariana Gheorghe
Romania's biggest company, Petrom, sees CSR projects as something aimed always at the future. Petrom's CSR projects tend to focus on the company's own employees, according to CEO Mariana Gheorghe, because no change of attitude is possible without the employees. However, clients, shareholders, investors, the media, authorities, NGOs and local communities are also involved in these projects.
Florin Ilie, ING Bank: investors and traders are on holiday
Yesterday, the Bucharest Stock Exchange saw another trading session with a poor trade value, that stood at a mere RON 7.15 million. BET index climbed 0.50% to 4,868.50 points, while composite BET -C rose 0.72%. " Trade values are low. People are on holiday. This is the sole explanation '', said Florin Ilie, stock market director at ING Bank Romania, stressing that this applies both to BSE and mature markets. (Romanian source)
NBR governor shows that central bank currency stocks are adequate
The governor of the National Bank of Romania said yesterday that the currency reserves of the central bank has reached a comfortable level, which is essential when taking out external loans. The head of the central bank added that Romania's international reserves shoot up after 2000. (Romanian source)
Ministry of Finance sold RON 470 million T-notes on Thursday
For the first time in years, the Ministry of Finance sold 9-months T-notes on Thursday. The value of the T-notes offered Thursday by the Ministry stood at about RON 470 million, below the planned RON 750 million. The average interest the Ministry will pay to the banks is around 6.99% per year. The demand from bankers for this type of instruments almost doubled from the sold value of RON 1.31 billion, and the maximum level of return accepted by the Ministry of Finance was 7%. (Romanian source)
Romanian banking system recorded RON 204 million loss at the end of May
The aggregated financial results for the Jan-May period this year of credit institutions operating in Romania point to a loss. According to data centralized by the National Bank of Romania, the local banking system recorded a RON 204 million loss. Although the decline is significant, it is much lower than the one recorded in the same period of last year, when it stood at RON 228 million. (Romanian source)
MedLife and IFC have signed a financing contract worth EUR 10 million
MedLife, the leading provider of private healthcare services in Romania, and the International Finance Corporation, part of the World Bank group, signed yesterday, July 15, an EUR 10 million financing contract. The contract will help MedLife implement an investment project worth EUR 20 million between 2010 and 2013. MedLife had a turnover of EUR 26 million in 2009 and is currently operating the biggest private hospital in Romania, Life Memorial Hospital, 5 hyperclinics, 5 labs, 28 healthcare centers, 6 specialized healthcare centers and is working with more than 110 partner clinics from around the country. (Romanian source)
CMU to open a hospital in Baneasa in the first half of next year
Centru Medical Unirea (CMU) will open a hospital in Baneasa in the first half of next year, upon the completion of an EUR 15 million investment project, while also striving to open a polyclinic in Brasov before the end of this year. Both units will feature maternity wards. Alexandru Popescu, Commercial Director of CMU, stated that the hospital will have 80 beds and will be located in CMU's Baneasa campus. (Romanian source)
Hidroelectrica will open, at the end of this month, a new hydro power plant at Plopi, Hunedoara County
Hidroelectrica will open, at the end of this month, a new hydro power plant at Plopi, Hunedoara County. The company had invested EUR 35 million in the new plant and is preparing to invest EUR 130 million in a new project, at Cozmesti, Galati County. (Romanian source)
After more than one year and a half of talks and analyses, the Government decided that every minister should have two secretaries of state, with the exception of the Ministers of Economy, Internal Affairs and Foreign Affairs. This means that the number of secretaries of state will drop from 57 to 32. Prime Minister Emil Boc called this a major achievement in the struggle to save public money. (Romanian source)
Crin Antonescu, President of the National Liberal Party (PNL), ruled out any cooperation with the Democrat-Liberals (PD-L)
Crin Antonescu, President of the National Liberal Party (PNL), ruled out once more any cooperation with the Democrat-Liberals (PD-L), stating that Romania needs an alternative to PD-L's entire power system. Antonescu added that joining the PD-L would lead to politics based on patronage, which is not in the interest of citizens. (Romanian source)
