The number of transactions carried out with BCR cards at retailers went up 33%
The transactions by BCR cards at retailers reached 28.06% of the transactions made by card in June 2010 compared to 20% during the same period in 2009. During the aforementioned period the number of transactions carried out with BCR cards at retailers has gone up 33%. BCR issues 25 types of credit and debit cards and has the largest ATM and POS network (more than 2,000 ATMs and 1,700 operational terminals at retailers). (Romanian source)
BRD-Groupe Societe Generale launches the contactless payment technology in Romania
BRD-Groupe Societe Generale introduces the contactless payment technology in Romania, which is widely used in western Europe, by launching Instant Pay, based on the MasterCard PayPassa technology. The contactless Instant Pay card is issued as a sticker or a pendant and can only be used for payment in Romania or abroad in places where the MasterCard PayPassa logo is displayed. The usage area of contactless cards is very wide, ranging from retail (small stores and hypermarkets) to public transport. The benefit of using this card in supermarkets is the shorter time necessary for the transaction, due to the elimination of steps such as: scanning the card, typing the PIN number and waiting for the authorization of the transaction. (Romanian source)
Bancpost lowers interests for EUR-denominated deposits
Bancpost has cut interests for EUR-denominated deposits. The maximum interest for the four-month deposit dropped from 4.5% to 4.2%, while for the three-month deposit with a progressive interest, the average return dropped 1% from 3% to 2%. (Romanian source)
Stress tests revealed that most of the European banks are healthy, but will lending be resumed?
Stress tests revealed that most of the European banks are healthy, but will lending be resumed? The banks have to raise billions of dollars via long-term financing to be able to grant such loans, writes The Wall Street Journal. Some analysts say the stress tests do not influence lending. " Although the interest rates for Eurozone loans are at historic lows, lending has not been resumed. This happens because there is no demand, not because of the offer or the costs '' says Ionut Dumitrescu, Chief Economist at Raiffeisen Bank. (Romanian source)
The price of old apartments, especially that of studios, dropped in H1 in almost all big cities
The price of old apartments, especially that of studios, dropped in H1 in almost all big cities. In Timisoara, the prices fell dramatically but in Cluj-Napoca the home owners stick to their price. On average, the price of a studio dropped 7.2% nationwide from the first week of 2010 until mid July, according to a study posted by www.imobiliare.ro. The price of studios dropped the most, followed by that of old two-bedroom apartments, with a 4.8% depreciation of offers. One-bedroom apartments remain in demand as their price dropped only 2.5% at EUR 915/sqm. The downwards trend will continue in the near future. In Bucharest, the price of new large apartments dropped the most. The price demanded for such two-bedroom apartments plunged 8.2%. (Romanian source)
Partnership between Prospectiuni and Societe des Petroles du Senegal
The geological prospects company owned by Ovidiu Tender, Prospectiuni Bucuresti (PRSN), is one of the most important domestic companies in the sector of oil services for the gas and oil industry and it signed at the middle of June a memorandum for agreement with Societe des Petroles du Senegal for the establishment of a long run partnership in the sector of geological, geophysical, and geochemical services. The same memorandum states that Prospectiuni has expressed interest for obtaining a lease to explore gas and oil for Diourbel (a region in Senegal). Prospectiuni is the main supplier of services of this type for the domestic companies specialized in gas and oil, such as OMV Petrom, Romgaz and Rompetrol. (Romanian source)
ATE Bank Romania has a liquidity and capital adequacy ratio above the minimum level demanded by the NBR
ATE Bank Romania has a liquidity and capital adequacy ratio above the minimum level demanded by the NBR and passed all the tests it was submitted to by the Central Bank, say the officials of the local subsidiary after the Athens-based parent bank did not manage to pass the stress test drafted by the Banking Supervision European Committee. ATE Bank is the only bank on the local market which failed to pass the stress tests whose results showed that the Greek credit institution needs EUR 242.6 million to handle the most severe test scenario. The stress tests performed last year in the U.S. showed that 10 banks, among them Bank of America and Citigroup, needed USD 74.6 billion. (Romanian source)
NBR: Insufficient demand is the main cause of activity decline in the industry and construction sector
Insufficient demand is the main cause of activity decline in the industry and construction sector. Other restrictive factors are the financial blockage and the significant impact of fiscal adjustments which became effective in July, according to a survey conducted by the NBR among companies. The companies in the industrial and construction sectors pointed out to the high interest rates and the trend of the exchange rate as the main factors with a negative impact. The results of the survey suggest that the chances for a more intense industrial activity in July are low. The construction sector remains on its upwards trend mostly given by seasonality. (Romanian source)
Jeffrey Franks: The IMF plans to revise its economic decrease estimate for Romania yet a contraction below 3% would be too pessimistic
The IMF forecast regarding the recession this year is being revised but a 3% contraction as mentioned by the EBRD is a much too pessimistic scenario, says Jeffrey Franks, the head of the IMF mission in Romania. The visit of the IMF officials began yesterday, July 26, at the NBR. The IMF officials met with the Director of the Supervision Department at the NBR, Nicolae Cinteza, then with Governor Mugur Isarescu. The IMF experts say it is premature to revise the budget deficit target established for this year at 6.8% of the GDP. The Capital Economics specialists expect to see a 2.5% economic decline in Romania this year and the GDP stagnation in 2011 would be considered good news. ING Bank Senior Economist Nicolae Alexandru Chidesciuc said that given the current context of the Romanian economy, a 3% decline of the GDP is the most reasonable. Although the decrease of the flat tax is considered to be one of the most significant measures of the Boc administration, analysts do not believe that the Romanian authorities can take such a step. According to BCR Chief Economist Lucian Anghel, fiscal measures also have to be given a time span: " It is very important for the business environment to know that an important tax will be that high for a five-year period, for instance. '' (Romanian source)
The Romgermed clinic will spend EUR 5 million from its own funds on investment projects this year
The Romgermed clinic will spend EUR 5 million from its own funds on investment projects this year, which makes it a rather special case since most of its competitors are suffering from cash flow problems. Dorian Schwartz, the clinic's majority shareholder, admitted that Romgermed's investments cannot compare in scope with those of CMU (EUR 30 million) or MedLife and Medicover (EUR 40 million each). (Romanian source)
Carrefour will open two supermarkets by the end of this week
French retailer Carrefour, the third largest player on the local retail market after Metro and Rewe, opened today its 5th Carrefour Market supermarket in Bucharest, in the Pantelimon neighborhood, and plans on opening another one in Alexandria by the end of this week. The French group will thus operate 28 Carrefour Market supermarkets on the local market. In August, however, the retailer will open another hypermarket in Drobeta-Turnu Severin, which will be the 23rd in Romania. The French group posted sales of EUR 1.13 billion in Romania last year, with 22 hypermarkets and 25 operational supermarkets, which was 4.6% lower than in 2008. (Romanian source)
Klaus Reisenauer and Kurt Wagner invested EUR 25 million in commercial centers in small cities
Sibiu-born Klaus Reisenauer and Kurt Wagner invested EUR 25 million in retail parks in cities such as Tecuci, Calarasi, Fagaras, Botosani, Giurgiu and Valcea through Oasis Retail Development Consulting. They used their own money, as well as loans from BCR and Investkredit Bank AG. The two opened commercial centers in small cities in 2009 and 2010, under the brand Prima Shopping Center and Family Center. Their secrets are the good locations in the center of cities and German discount retailers such as Kaufland (food products), Plus (food products), Takko (clothes), Deichmann (footwear), and DM Drogerie (drug stores) as anchor stores. Their only big project started this year is Prima Shopping Center in Sibiu - firstly as an Obi DIY store, which will open next month, followed by the development of a retail park. (Romanian source)
The Ministry of Labor will attempt to change the members of the commissions tasked with checking the handicapped persons who are given state aid
The Ministry of Labor will attempt to change the members of the commissions tasked with checking the handicapped persons who are given state aid. The Ministry wants to staff the commissions with doctors from different counties than the beneficiaries, according to Secretary of State Nicolae Ivaschescu. (Romanian source)
A local councilor from the Timis County, Beniamin Ursu, was arrested for peddling influence. Ursu is a local councilor in Ghiroda and is a member of the Democrat-Liberal Party (PD-L). He demanded EUR 8,000 from an citizen in exchange for certain permits from the Timisoara City Hall. (Romanian source)
Government to slap an additional tax on big fortunes
The big fortunes are facing additional taxes. Prime Minister Emil Boc announced yesterday, July 26, that the Government is working on a bill that would see the big fortunes taxed according to their true value. The proposal to slap additional taxes on the big fortunes was made by the National Union for Romania's Progress (UNPR). (Romanian source)
Some district mayors accuse Sorin Oprescu of cooperating with the PD-L
Some district mayors accuse Bucharest Mayor Sorin Oprescu of cooperating with the PD-L in an attempt to get his own projects approved by the General Council. Oprescu replied that he would cooperate with every party in order to deliver on his campaign promises. (Romanian source)
