Alpha Bank analysts affirmed price target for BRD shares
The downtrend of the stock market in the previous month has pushed BRD-Societe Generale trading multiples to below market average, while Banca Transilvania shares reached their fair value, Alpha Bank analysts said. They have affirmed their price target for BRD shares at RON 15.5/share, and an upside potential of 44% from current market level. Alpha Bank has revised its outlook from " hold '' to " buy ''. As for Banca Transilvania shares, Alpha Bank has lifted its price target from RON 1.4 to RON 1.5 /share. (Romanian source)
GE Garanti Bank's assets reached more than EUR 1 billion
GE Garanti Bank's assets reached more than EUR 1 billion according to a bank's press release. This year the bank plans to increase its asset volume by 50% and its volume of loans and deposits by 40% compared to 2009. Also, by the end of 2011, the bank plans to double its number of agencies locally at 100 units. In 2009, the bank saw an important growth rate in terms of assets and issued loans, number of clients, products and services. (Romanian source)
E.ON Moldova Distributie registered losses of around 9.3 million RON in the months of June and July because of the extreme weather in the Moldova area, and it began a program for investments in the area
E.ON Moldova Distributie registered losses of around RON 9.3 million in the months of June and July because of the extreme weather in the Moldova area, and it began a program for investments in the area in order to establish the damaged networks, the works will be closed in 2010. Over 250 kilometers were affected in the distribution network of electricity from 279 localities, in the counties Suceava, Bacau, Neamt, Botosani, Iasi and Vaslui. (Romanian source)
Adrem Invest reached in 2009 a turnover of over EUR 10 million, up 40% compared to 2008
Adrem Invest reached in 2009 a turnover of over EUR 10 million, up 40% compared to 2008, in a year when most of the businesses suffered because of the financial crisis. The secret of last year's rise was a major contract for the reading and installing of meters for CEZ, which supplies the Oltenia region with electricity, an area with over a million consumers. CEZ was the first company to outsource the service of reading and installing meters in order to cut costs. (Romanian source)
Trenkwalder Sobis posted EUR 8.4 million profit for H1
Recruiting firm Trenkwalder Sobis, the local branch of Austrian group Trenkwalder, has posted revenues of EUR 8.4 million for the first half of the year, three times higher than in the first quarter. Personnel leasing is expected to bring the company EUR 17 million in aggregated revenues by the end of this year, twice bigger than last year. (Romanian source)
Target Capital estimates a target price for Albalact Alba Iulia of RON 0.252 per share
Target Capital estimates a target price for Albalact Alba Iulia of RON 0.252 per share, up 16% compared to the last price for which the company's shares were traded on the market. The company's shares fell during the past few months, as did the stock exchange. Since the year began, the price of Albalact's shares has decreased by 42%. (Romanian source)
NBR releases severe warning during the politicians' holiday
The NBR releases severe warning during the politicians' holiday: the state is barely managing to get money to pay the state employees' salaries, the pensions and other social obligations. The budget unbalance is structural, in other words they won't be fixed unless the economy recovers. " A mere economic growth won't correct this structural deficit '' said NBR Governor Mugur Isarescu at a debate organized by Saptamana Financiara and Financiarul. Isarescu presented a series of observations related to the state of the economy and of the society in its whole. The problems have to be discussed thoroughly, not resumed in superficial statements under the pressure of ratings and populism, was one of the messages. The Governor said there is a contradiction between statistically low taxation (30% of the GDP) and the companies' excessive taxation. The solution of higher taxes and contributions to increase budget revenues is not feasible and won't help correct the state's deficit, warned Isarescu yesterday. (Romanian source)
(JURNALUL NATIONAL 1 Daniela Ivan Daniela Ivan) --- Read article here
(JURNALUL NATIONAL 3 Daniela Ivan Daniela Ivan) --- Read article here
Consumer lending demand is very poor
The demand for consumer loans is very sluggish, but financiers have no plans in lowering interests any longer to attract new customers, citing higher loan impairment costs. In case of credit companies, the annual percentage rate for RON-denominated loans reaches 35%-40%, widely above the benchmark lending rate of the National Bank of Romania of 6.25%. As for EUR-denominated loans, the APR can reach up to 30%. (Romanian source)
Mihai Ionescu, President of the National Association of Romanian Exporters and Importers (ANEIR): " Romanian exports have left the recession behind ''
The trends of exports between November 2009 and June 20101 was marked by continuous growth, which made Mihai Ionescu, President of the National Association of Romanian Exporters and Importers (ANEIR), state before a series of guests gathered at the Ministry of Economy that Romanian exports have left the recession behind. Car maker Automobile Dacia, which is controlled by French group Renault, and mobile phones maker Nokia Romania, the local branch of Nokia, are Romania's top exporters, according to an ANEIR report. (Romanian source)
Radu Ghetea says people whose interest rates are pegged to the Robor index should expect some adjustments in the coming months
People whose interest rates on loans are pegged to the Robor index should expect some adjustments in the coming months, according to Radu Gratian Ghetea, President of the Romanian Banking Association (ARB). The ARB President also noted that the purpose of pegging the interest rate to the inter-banks index, which was banned this summer, allowed the absorption of possible rate peaks. Ionut Dumitru, Chief-Economist of Raiffeisen Bank, stated that an increase in interest rates in the coming months cannot be ruled out and that the National Bank (BNR) has already announced it would intervene in case of a persistent increase in prices, triggered by the VAT hike. (Romanian source)
Minister of Economy Adriean Videanu said floods and higher VAT would result in a 1.5% contraction of the economy this year
Minister of Economy Adriean Videanu told The Money Channel that the floods and the higher VAT would result in a 1.5% contraction of the economy this year. The revised forecast of the IMF showed that the contraction rate for the year 2011 would be 0.5%. (Romanian source)
Transdanube Industries plans to finance the construction of steel plant in Oltenita
Transdanube Industries plans to finance the construction of steel plant in Oltenita from own sources and loans. Tommaso Serrano, chief executive of TDI said yesterday: " We plan on taking out loans from Romanian and foreign banks to cover 30-40% of the total project costs of EUR 150 million. Loan terms are not very advantageous, but we will continue negotiation with banks such as BCR and UniCredit in Romania, as well as with international financial institutions such as EIB and Citibank ''. (Romanian source)
Clujana to open today a footwear store in Iulius Mall
Romanian footwear producer Clujana will open today a new store in the Iulius Mall which is located in the Gheorgheni neighborhood of Cluj, according to the Cluj County Council. (Romanian source)
Prime Minister Emil Boc says the European Commission's report regarding the state of Romania's justice system is technically correct, but unbalanced politically
Prime Minister Emil Boc stated during Wednesday's meeting of the Cabinet, that the European Commission's report regarding the state of Romania's justice system is technically correct, but unbalanced politically. President Basescu stated, in his turn, that the EC's conclusion that " Romania is in breach of promises made '' is " unacceptable ''. (Romanian source)
Minister of Internal Affairs Vasile Blaga says Elena Udrea could use the position of interim president of PD-L's Bucharest organization as a springboard in order to run for Bucharest Mayor
Minister of Internal Affairs Vasile Blaga says Elena Udrea could use the position of interim president of PD-L's Bucharest organization as a springboard in order to run for Bucharest Mayor. Blaga went on to say that he believes that Udrea has a chance to win the mayoral elections. (Romanian source)
PSD to raise signatures collection campaign ahead of new motion of censure
The Social Democrat Party (PSD) will begin collecting signatures form people who support their upcoming motion of censure against the Government. The signatures collecting actions will be organized in all county organizations and party members will be tasked with explaining to the public " the ten reasons why the Cabinet has to go! ''. (Romanian source)
