Romania attracted last year Foreign Direct Investment worth USD 6.3 billion, down 54% compared to 2008
According to the international investment report for the year 2010, which was presented on Friday in Bucharest by UNCTAD, Romania attracted last year foreign direct investment worth USD 6.3 billion, down 54% compared to 2008. Doina Ciomag, Executive Secretary of FIC, stated that Romania is still in recession and there's little chance of positive growth this year.
Doina Ciomag, Executive Director of FIC: "There's little chance of positive growth this year"
The aggregated value of foreign direct investment attracted this year will be smaller than that of last year, as data for the first half of the year indicate that Romania is still in recession. Although the international economy is recovering slightly, Romania's economic situation was not particularly favorable to investment. Doina Ciomag, Executive Secretary of FIC, stated that there's little chance of positive growth this year.
The number of transactions made with BCR cards at retailers were 33% higher in June compared to the same month last year
The number of transactions made with BCR cards at retailers were 33% higher in June compared to the same month last year and the traded volume hiked 26%, the bank announced. " The percentage of transactions made with cards at retailers reached 28.06% of the transactions carried out with cards in June 2010 compared to 20% in June 2009 '' said the BCR representatives. (Romanian source)
BRD shares are among the most liquid stocks traded on the BVB
Shares listed on the Bucharest Stock Exchange climbed by an average 0.75% at the end of last week, while the BET-FI index, which tracks the state investment funds, fell 2.35%. The most liquid stocks were those of SIF 5, BRD, SIF 2, SIF 1 and SIF 3. (Romanian source)
BCR Banca pentru Locuinte has begun to pay its clients the state premium for the savings&loans contracts signed in 2009
BCR Banca pentru Locuinte announced on Friday that it had begun to pay its clients the state premium for the savings&loans contracts signed in 2009. " The loans issued by BCR BpL offer fixed installments, which are not influenced by the currency exchange rate, and small interest rates of 5%-6%, depending on the tariff '' said Alexandru Ciobanu, the President of BCR Banca pentru Locuinte. Raiffeisen Banca pentru Locuinte is also active on the Romanian savings&loans market. (Romanian source)
CEC Bank launches the house building credit for the Prima Casa program
CEC Bank launches the house building credit for the Prima Casa program, thus providing clients with the possibility of financing the construction of houses. The beneficiaries can build houses individually or via associations of at least seven beneficiaries. (Romanian source)
ATE Bank is the only lending institution on the Romanian market to fail the European stress test
ATE Bank is the only lending institution on the Romanian market to fail the European stress test. Officials from the National Bank of Romania (BNR) and financial analysts say that the result of the stress test will have no impact on the Romanian banking system. Adrian Vasilescu, adviser of BNR's Governor, stated that ATE Bank Romania plays a positive role on the local market, despite being a small bank. The four French banks included in the test, BNP Paribas, GSG (owner of BRD), Credit Agricole and BPCE, plus French-Belgian bank Dexia, have passed the test. (Romanian source)
The monetary mass amounted to RON 195,087.5 million at the end of June 2010
According to the NBR, the M3 monetary mass amounted to RON 195,087.5 million at the end of June 2010. Compared to May 2010, it went up 1.2% (1% in real terms) and compared to June 2009 the monetary mass hiked 8.2% (3.6% in real terms). Also, the volume of the non-governmental loan issued by credit institutions went up 3.8% in June 2010 (3.6% in real terms) compared to May 2010, at RON 210,808.8 million. The RON-denominated loan increased by 0.5% (0.3% in real terms) while the foreign currency loan denominated in lei hiked 5.8% (in Euros the foreign currency loan went up 1.2%). (Romanian Source)
The parent banks of the nine credit institutions owned by foreign capital and operating in Romania have restated their support for their Romanian branches
The parent banks of the nine credit institutions owned by foreign capital and operating in Romania have restated their support for their Romanian branches, during a meeting of the Initiative group for European banking coordination. The nine banks had asked in March, 2009, for a 5% variation band in exposure and the request was approved by the IMF, EC and BNR. (Romanian source)
Peter Sanfey, the Chief Economist for South-Eastern Europe of the European Bank for Reconstruction and Development, stated that the EBRD has revised its growth estimate for Romania's GDP. The new estimate is -3% for the year 2010 and zero growth next year. The revision was triggered by the recent VAT hike and public sector wage slashing. (Romanian source)
Representatives of the Government and US company Bechtel agreed to sign in August a protocol for continuing to finance the construction of the Transylvania Highway
Representatives of the Government and US company Bechtel agreed to sign in August a protocol for continuing to finance the construction of the Transylvania Highway. The protocol will also set which highway sectors are to be completed this year. (Romanian source)
Transelectrica signed an EUR 17.88 million contract with Romelectro and CG Holdings Belgium NV System Division for upgrading the circuits of a Brasov substation
Transelectrica, operator of the national power grid, has signed an EUR 17.88 million contract with Romelectro and CG Holdings Belgium NV System Division for upgrading the circuits of a Brasov substation. The project will be financed with both borrowed funds and with the company's own resources. (Romanian source)
German discount store network LIDL bought a 8,600-sqm land in central Focsani, where it will developed a 1,800-sqm store on the place of the former bus station
German discount store network LIDL bought a 8,600-sqm land in central Focsani, where it will developed a 1,800-sqm store on the place of the former bus station. The bus station was relocated in April this year, after the shareholders of the transport firm decided at the end of 2009 to sell the land to LIDL. LIDL, the second largest discount food retailer at European level after Aldi, bought the Plus stores in Romania and Bulgaria at the beginning of the year. The German network has put EUR 70 million in the share capital of the local subsidiary LIDL Romania, and most of the cities where it received building authorizations have less than 100,000 residents. (Romanian source)
Government passed the law of small reforms of the Justice system
Government passed the so-called " law of small reforms '' of the Justice system, a series of measures designed to speed up the process of finding solutions to civil and criminal cases and to reduce the cost of justice. (Romanian source)
Government passes enforcement guidelines for the emergency act regarding the insulation of residential buildings, financed by Government-backed loans
The Government has recently passed the enforcement guidelines for the emergency act regarding the insulation of residential buildings, financed by Government-backed loans, according to Prime Minister Emil Boc. The Prime Minister added that the Government is prepared to back the loans for up to five years. (Romanian source)
The Ministry of Agriculture and Rural Development stated it would lay off 3,174 people by mid-September
The Ministry of Agriculture and Rural Development stated it would lay off 3,174 people by mid-September. Mihail Dumitru, the Minister of Agriculture, said that the laid off employees would be paid no severance because they do not have a collective bargain. (Romanian Source)
The Social Democrat Party asked the UDMR to state its official position regarding the statements made by Laszlo Tokes
The Social Democrat Party (PSD) asked the Democratic Union of Romanian Magyars (UDMR) to state its official position regarding the statements made by Laszlo Tokes. The PSD would also request the sacking of Tokes from all his jobs and would seek the harsh punishing of the European MP, who is seen by the PSD as a threat to the Romanian state. (Romanian source)
