Foreign Investors Council: In Romania, the average speed of trucks is 35 kilometers per hour, compared to 60-70 kmph in Western Europe
Spending 1,000 kilometers lasts twice more in Romania than in Western European countries. According to the Foreign Investors Council, the average speed of trucks in Romania is 35 kilometers per hour, compared to 60-70 kmph in Western Europe.
Forecasts of local brokerage houses' financial analysts point to a weaker second quarter in terms of profitability for Banca Transilvania
Forecasts of local brokerage houses' financial analysts point to a weaker second quarter in terms of profitability for Banca Transilvania. The median of the forecasts for the Q2 net profit stands at RON 7.1 million as the bank's first-quarter earnings was two times higher, of RON 16 million. However, first-quarter estimates indicate a net profit of RON 23.1 million, double from the year-ago period. Banca Transilvania, the largest lender with Romanian capital in the local market, will announce today its first-half results, sooner than planned. (Romanian source)
Alpha Leasing recorded in 2009 a net loss of RON 7.92 million. The company had total assets of RON 407 million and a market share below 0.5% at the end of 2009. (Romanian source)
Three largest mutual funds in the market attracted over 87,000 new investors over the past year and a half
The biggest mutual funds in the market, BCR Monetar, BCR Obligatiuni and Raiffeisen Monetar attracted over 87,000 new investors over the past year and a half, to around 105,000 customers, more than half of the market total. By contrast, the number of active accounts at the stock market is around 95,000, down from 2007, which indicates an increase in the popularity of mutual funds compared to equity investments. (Romanian source)
Erste Group and Raiffeisen have a net exposure of EUR 3.77 billion to bonds issued by the Romanian state
Erste Group and Raiffeisen International, two of the largest Austrian banks on the local market, have a net exposure of EUR 3.77 billion to bonds issued by the Romanian state and by local authorities, representing more than a fifth of Romania's public debt. Erste, BCR's majority shareholder, had at the end of March an exposure of EUR 2.49 billion to Romanian bonds, accounting for 14.3% of the public external debt which amounted to EUR 17.4 billion during the same period. (Romanian source)
SIF Moldova sold yesterday a BRD stake worth RON 2.6 million
SIF Moldova sold yesterday a stake of BRD shares worth RON 2.6 million (EUR 612,000), as the financial investment company was an active Banca Transilvania shares buyer over the past few months. Since the beginning of the month, SIF Moldova bought 1.1 million TLV shares, representing 0.1% of total bank equity, investments standing at RON 1.57 million (EUR 370,000). (Romanian source)
Danya Cebus saw a turnover of EUR 118 million and a EUR 3.1 million profit thus becoming one of the largest contractors on the local market
Danya Cebus saw a turnover of EUR 118 million and a EUR 3.1 million profit thus becoming one of the largest contractors on the local market. Its turnover hiked 9% compared to 2008 when the company completed the Cotroceni Park mall, the most expensive ever built in Romania, following an investment of EUR 300 million. The company collaborated with Adama for the building of Evocasa Selecta on Ferdinand Bvd in Bucharest and plans two other projects (Armonia and Optima) in Titan, as well as the Evocasa Viva complex in Brasov. In 2008, the company became the contractor of the Planorama project in Colentina and Odyssea in Sisesti (north-western Bucharest). Meanwhile these contracts were terminated. (Romanian source)
IMF mission chief is worried about Romania's capacity to attract European funds
Jeffrey Franks, IMF mission chief, is worried about Romania's capacity to attract European funds. Romania is unable to absorb European funds and is at risks of losing as much as EUR 20 billion in the coming years, due to poor management. This is the conclusion of IMF officials. Last week, EC, and IMF organized in Brussels a meeting with the parent banks of Erste, Raiffeisen, EFG, NBG, UniCredit, Societe Generale, Alpha Bank, Volksbank and Piraeus. (Romanian source)
The government should borrow at least EUR 5.2 billion from banks next year to be able to pay pensions and salaries
The IMF officials are in Bucharest, assessing the Romanian economy to see whether all the commitments have been fulfilled. The government should borrow at least EUR 5.2 billion from banks next year to be able to pay pensions and salaries and a further EUR 8 billion to pay older debts. Since the banks are charging interest rates of at least 7% a year for RON-denominated loans and 5% for EUR-denominated loans, the government will most likely resort to the European Commission and the IMF again. Most of the money borrowed in the current loan agreement - EUR 11 billion - are meant to increase the National Bank's reserve so the RON would not collapse and lending would be resumed. (Romanian source)
BNR: Almost 43% of the industrial companies and 58% of the construction companies point to the demand deficit as being main cause of low activity
Although insufficient demand is the main cause for the activity decline in the industry and the construction sector, the financial blockage and the significant impact of fiscal adjustments operated in July are other important restrictive factors, writes the survey conducted by the National Bank (BNR) among companies. " Some 43% of the industrial companies and 58% of the total number of construction operators point to the demand deficit as being main cause of low activity. The financial blockage continues to have a major negative influence, taking its toll on the construction sector more (35% compared to 17% in the industrial sector) '' shows the situation survey conducted by the BNR.
Retail lending increased 4.2% in the first quarter
Retail lending increased in the first quarter by 4.2% to RON 104.7 million, 10 times faster than in the year-ago period. Loans in foreign currency increased by RON 5.4 million, or 8.75% to RON 67 billion. Almost 40% of total loans in foreign currency was given out by banks in Bucharest. According to data from the National Bank of Romania, foreign currency lending increased in the first quarter by RON 2.1 billion, to RON 25.8 billion. Overdue loans soared 67% in the first quarter to RON 13.6 billion, according to data from the National Bank of Romania. (Romanian source)
Councilor to NBR governor, Adrian Vasilescu said that Romania would fail to rationalize pensions and wages this year and next year
Councilor to the governor of the National Bank of Romania, Adrian Vasilescu, said that Romania would fail to rationalize pensions and wages this year and next year. He added that Romania cannot fight on two different financial fronts, namely the reduction of the budget gap and fiscality. And for the time being, the reduction of the budget gap takes precedence. (Romanian source)
CEZ could buy four micro hydro power plants by the end of the year
CEZ could buy four micro hydro power plants worth an aggregated 25 MW by the end of the year, the company's second foray into the renewable energy sector. CEZ is currently building a wind power park worth EUR 1.1 billion near two Constanta County villages. The decision came on the heels of law 220/2008, which sets a system of promoting the production of energy from renewable sources. For every MWh of green power, the producer gets a green certificate from Transelectrica. CEZ has recently pulled out of an EUR 400 million project to build a gas-fired plant in Galati, which also involved Termoelectrica. (Romanian source)
The top ten industrial parks of the country have attracted billions in foreign investment over the past years and created more than 22,000 jobs.
The top ten industrial parks of the country have attracted billions in foreign investment over the past years and created more than 22,000 jobs. Industrial parks and cheap labor made Romania a magnet for foreign companies, such as Nokia, Emerson or P&G. Even local companies took advantage of the industrial parks. Mobexpert has a plant in the Mures Industrial Park and employs 1,300 workers. (Romanian source)
Elena Udrea wants an internal audit of PD-L Bucharest
Elena Udrea, the new head of PD-L's Bucharest organization, announced on her personal blog that she had decided to ask for an internal audit of the organization and also for a census of active members and a poll in order to assess the party's standing with Bucharest's residents. Udrea explained that PD-L is no longer the engine of change in Bucharest and that a lot of work needs to be done to change the party's status. (Romanian source)
PNL wants the case of former Minister of Youth, Monica Iacob-Ridzi, discussed in the Parliament
Deputy Ciprian Dobre, from the National Liberal Party (PNL), announced yesterday, during a press conference that the PNL MPs want the case of former Minister of Youth, Monica Iacob-Ridzi, discussed in the Parliament. Dobre added that this is the second year that the PD-L and Monica Iacob-Ridzi are avoiding the criminal investigation of their deeds. (Romanian source)
