BCR plans to extend network to 728 outlets by year-end
Despite the sluggish retail market, BCR plans to boost chain to 728 outlets by year end, in an effort to facilitate customers' access to financial services as well as to keep its market share in certain areas, according to updated prospectus of external and internal financing program of the bank. For the time being, BCR has 668 retail outlets across the country and 48 business outlets for SMEs and large companies. BCR had at the end of last year a market share of 23% of the retail industry and 19.7% in the consumer lending segment. (Romanian source)
Credit brokers don't expect lending market to pick up soon
Credit brokers don't expect lending market to pick up soon, because customers think twice before taking out a loan from a bank. Liviu Andrei, director of Alliance Finance Broker, said the for the time being, the debt consolidation loans, used for bringing all credit lines under one loan, at a lower interest and for a longer period of time, are the most popular. As for the real estate loans, the first months of summer had seen a slight demand in loans under " Prima Casa '' scheme, said Liviu Andrei. (Romanian source)
Cetelem launched a offer for clients whose revenues have decreased
Cetelem, the biggest consumer lending company on the Romanian market, has launched an offer for clients whose revenues have decreased and who need to have their loans restructured. Gitles Zeitoun, CEO of Cetelem, stated that the only condition for clients who apply for this offer is not to be behind in their payments. (Romanian source)
Only 6% of the Romanians are paying their bills by card according to a GfK Romania study
77% of the Romanians who pay bills use the supplier's offices, according to an Omnibus study conducted in June by GfK Romania. Other methods used to pay bills are payments at the post office (39% of the respondents) and at banks (25%). Only 5% of the people use ATMs for payment and only 2% use Internet banking services. Those who go to banking units to pay their bills say this method is simple (26%) or fast (20%) and some of them also choose it because they don't have a bank card or don't know how to use it (14%). Only 6% of the respondents pay their bills by card, most of them preferring cash. (Romanian source)
Emporiki Bank offers discount to the application analysis fee for refinancing loans
Emporiki Bank offers a 1% discount for the application fee for persons applying for refinancing loans who accept receiving their monthly income in an open account at the bank. For an unsecured personal loan, the discount is 1% to 2.5%. (Romanian source)
NBR gave the green light for banks to send bids for T-notes by email instead of by fax
After three years of trials and discussions, the National Bank of Romania has agreed to allow banks to submit their bids for the treasury notes online and not via fax, as of August 2. Also starting with August 2, banks interested in participating in the market operations conducted by NBR or those that require access to deposit or credit facilities offered by the central bank will send the necessary documents through electronic means. (Romanian source)
Steel producer ArcelorMittal Galati could join Termoelectrica in building an electricity production unit in Galati
Steel producer ArcelorMittal Galati could join Termoelectrica in building an electricity production unit in Galati, following CEZ's decision to pull out of the project. The steelworks is very interested in the construction of the 400 MW power plant because it is the second biggest electricity consumer in Romania, after Alro Slatina. (Romanian source)
NBR: The decrease of the currency reserves so budget revenues would surge is unconstitutional
The NBR has to analyze a legislation proposal which mentions the increase of budget revenues through the decrease of currency reserves, an initiative that the Central Bank is rejecting as it is breaching the NBR charter, the EU Treaty and the Constitution, said Adrian Vasilescu, the Councilor of the NBR Governor, Mugur Isarescu. The draft bill was initiated by Liberal Senator Ioan Ghise and aims to complete and modify the state budget law for 2010. " The NBR noticed that the draft bill does not state whether the NBR's participation in the increase of budget revenues would happen via lending or via the NBR's financing of the state budget. What's certain is that both situations breach the NBR charter law '' said Vasilescu. NBR Governor Mugur Isarescu explained last week that the purpose of the international reserves is to represent an element of credibility for the state. Also, Romania would not borrow money under advantageous conditions from international markets in the absence of these reserves. (Romanian source)
" Prima Casa '' program hurt by lengthy procedures
The lengthy and slow procedures used by local authorities to issue building permits is the main issue holding back people who want to build a house via the " Prima Casa '' program, according to Prime Minister Emil Boc. The PM added that 24,277 people are now house owners thanks to this program. (Romanian source)
Enel Green Power Romania and Elcomex to build a wind farm
Enel Green Power Romania announced, at the end of the week, that it reached an agreement with Elcomex, a group from our country in the energy sector, for the development of a large scale wind farm in the Dobrogea area. The project, of 272 MW, located in Constanta county, at around 30 km from the shore of the Black Sea, will be connected to the national grid owned by Transelectrica, as soon as it will be operational. (Romanian source)
Romania attracted EUR 221 million in investments from private equity funds in 2009
Romania attracted EUR 221 million in investments from private equity funds in 2009, ranking third in Central and Eastern Europe, ahead of Hungary and Bulgaria, according to a study conducted by the European Private Equity and Venture Capital Association. Most of the money went to the FMCG, IT&C and energy industries. (Romanian source)
Freight transport company Dumagas was taken over by investment fund Bancroft Private Equity
Dumagas, one of the biggest freight transport companies in Romania, with a turnover of EUR 28 million in 2009, was taken over by investment fund Bancroft Private Equity. The investment fund has paid more than EUR 20 million for the majority stake in the company, according to market sources. Among Dumagas' biggest clients are Butangas, Dorna Lactate, Tnuva, Ikea, and Ford Romania. (Romanian source)
Romsys and IBM shall provide IT Services to the Romanian Post for EUR 9 million
Romsys, a local provider of IT solutions and services, will provide repair and maintenance services for the IT&C equipment owned by the Romanian Post, under an EUR 6.9 million deal. IBM Romania has also signed a contract with the Romanian Post for providing consultancy solutions regarding software integration. The contract is estimated at EUR 2.3 million. (Romanian source)
Condmag contributed with RON 4 million to Flowtex Technology's equity boost
Condmag Brasov AB approved at the end of last week the investing of RON 4.07 million in Flowtex Technology's capital boost, according to a report sent on Friday to the Bucharest Stock Exchange. Condmag is the majority shareholder of Flowtex Energy, with a stake of 92,21%. Businessman Gheorghe Caluburean controls 44,6% of Condmag through Dafora Medias.
Romelectro started hiring personnel for a new business division
Romelectro, a company that deals in the supply of services for the energy industry, stated that they began hiring in order to establish a new business division specialized in the delivery of projects for the production of energy from renewable sources and does not exclude the possibility that in the future it have its own green power project. (Romanian source)
Unitary pension law was abandoned at the Chamber of Deputies
The deadline for the submitting of the draft bill regarding the unitary pension system was postponed by the Permanent Bureau of the Chamber of Deputies until September 1. According to Secretary Dumitru Pardau, the demand came from the President of the Labor Commission, Liberal Victor Paul Dobre, and was approved by all those present. Dobre said the draft bill should undergo a series of corrections. He said there are three problems on which the Boc administration should focus: " The first is the fact that the law includes unconstitutional texts according to the latest decision adopted by CCR. The second refers to an amendment submitted by the Minister of Finance according to which the pension point should be established each year via the social insurance budget. The third aspect is represented by special pensions '' says Dobre. (Romanian Source)
PSD excludes the option of forming a cabinet with PD-L or PNL
Victor Ponta, President of the Social Democrat Party (PSD), rejected at the end of last week the idea of a national unity government. Ponta added that the PSD rejects the idea of forming a cabinet with either PD-L or PNL. (Romanian source)
Radu Roatis, a member of the National Liberal Party (PNL), was reinstated as head of the National Sanitary Veterinary and Food Safety Authority (ANSVSA). Roatis was fired in February, 2009, but the court ruled in his favor in the subsequent lawsuit. (Romanian source)
