Avicola Crevedia shareholders agreed to borrow RON 22.7 million
Shareholders of poultry producers Avicola Crevedia (AVRE) agreed to borrow EUR 5.4 million from BCR, for refinancing loans from Credit Europe Bank and for the financing of the working capital. The first loan, worth RON 12.7 million, will be used to refinance credits from Credit Europe Bank, while the other one, worth RON 10 million, will be used to boost working capital, the company said in a statement sent to the RASDAQ market. The bank will have to begin talks with Bancpost, UniCredit Tiriac and CEC Bank. (Romanian source)
Vest Energo Bucharest sold assets worth EUR 3.2 million to Ager Leasing
Energy producer Vest Energo Bucharest sold assets worth EUR 3.2 million to Ager Leasing and will get another EUR 8.5 million in financing from the same company, based on a leasing contract signed in April. (Romanian source)
The Bucharest Court of Law has recently approved the request for insolvency filed by snacks and chips distributor Standard Snacks at the demand of a creditor and the Transilvania Insolvency House became the company's judicial administrator. Piraeus Leasing is the company which demanded the insolvency of Standard Snacks for a debt of EUR 100,000. (Romanian source)
A study conducted by GfK shows that 78% of the Romanians do not believe that the economic situation will improve
A study conducted by GfK shows that 78% of the Romanians do not believe that the economic situation will improve. Given the economic crisis, 87% of the Romanians say it is highly unlikely for them to buy a house or a car in the next two years. The Consumer Confidence Index, compiled by GfK, posted for June the biggest drop of the past ten years. (Romanian source)
Foreign banks will meet on July 22 in Brussels with the NBR and IMF officials for the semestrial assessment of the agreement
The heads of the nine foreign banks who pledged last spring to keep their exposure to the Romanian market will meet on July 22 in Brussels with the NBR and IMF representatives for the semestrial assessment of the agreement. " They continue to be very close to the objective they agreed with. None of the foreign banks has not asked me personally for a decrease in exposure '' said Nicolae Cinteza, the head of the Supervision Department at the NBR. The financing of the budget deficit is at stake for now as the banks have invested most of their liquidities in state bonds. The demand for loans from the private sector remains weak. Last year, the NBR and the government decided that Romania should borrow EUR 20 billion from the IMF, the European Union and the World Bank in order to make sure that the refunding of the external debt will be made without pressures on the currency exchange rate. (Romanian source)
The spread between average interests for loans and deposits in RON widened 0.5% in May
Bankers refuse to loosen their pressure on customers, by raising interest margin for RON and leaving those for EUR unchanged, in an attempt to rack fat profits. Practically, bankers put extra pressure on existent customers, as loan demand remains feeble. The spread between average interests for loans and deposits in RON widened 0.5% in May to 4.5%, banks being reluctant in restarting large-scale lending while risks are still high, data from the National Bank of Romania show. (Romanian source)
Erste: Romanian stock market had the weakest performance of all CEE equity markets
Romanian stock market had the weakest performance of all CEE equity markets, that recorded a disappointing performance at large, due to the poor investor confidence, Erste Group said in a report. The bank added that the performance of South-East Europe was weighed down by the negative trendline of the Romanian stock market, that didn't meet expectations. (Romanian source)
Revenues in the shape of interest rates paid as of July 1, 2010, will be charged a 16% tax
After yesterday's meeting between the Romanian Banking Association and the Minister of Finance it was established that only the revenues in the shape of interest rates paid as of July 1, 2010, should be charged a 16% tax. Under these conditions, the revenues from interest rates made until June 30, 2010, shall not be subjected to taxation. The president of the Romanian Banking Association, Radu Ghetea, said the deponents for which higher taxes were charged during the first days in July will receive the money difference back from banks. " At CEC Bank we will do everything possible to change the IT system in accordance with the new taxation method. There will probably be one or two more days during which clients will pay a tax on the entire sum if the interest rate is paid on maturity but the bank will give them their money back '' said Ghetea who is also the President of CEC Bank. (Romanian source)
E.ON Romania has invested EUR 450 million over the past five years
E.ON Romania has invested EUR 450 million over the past five years on the local market. The money was used to rehabilitate, modernize and expand the electricity distribution grid and to buy new tools, machines and IT systems. (Romanian source)
Electrica to develop two wind farms, one in Constanta county and the other in Galati
Electrica to develop two wind farms, one in Constanta county in the area of Chirnogeni and in Galati in the area of Frumusita, each with an output of 500 MW. " The investments in the wind farm at Chirnogeni rise up to EUR 87 million, money that will be ensured 50-50% by owned capital and by a loan '', according to Marian Geanta, development director at Electrica. (Romanian source)
Mega Image is developing a 100,000-sqm distribution center in the south east of Bucharest
Mega Image is developing a 100,000-sqm distribution center in the south east of Bucharest, in Popesti Leordeni, announced Archicom, the firm in charge with the design. Archicom is a Dutch consultancy firm specialized in architecture and project management and has been present on the Romanian market since 2000, when it was appointed a consultant for a series of analyses for the distribution network of Mega Image. (Romanian source)
PSD to file a new motion of censure against the Boc Cabinet
Victor Ponta, President of the Social Democrat Party (PSD), stated yesterday, in Slatina, that the party will file a new motion of censure against the Boc Cabinet. The motion will be filed during the autumn session of the Parliament. Ponta said that only the downfall of the current Cabinet could prevent a possible taxation of pensions. (Romanian source)
Magistrates of the Constitutional Court rejected the complaint filed by 40 Senators from the opposition parties regarding the unconstitutional status of the pensions and wages cut law
The magistrates of the Constitutional Court rejected the complaint filed by 40 Senators from the opposition parties regarding the unconstitutional status of the pensions and wages cut law. The Court had already rejected part of the law as unconstitutional, a decision which President Traian Basescu called " political, not constitutional ''.
PD-L Deputy Mircia Giurgiu to sponsor a bill whose purpose is to make the victims of floods exempt from paying installments
PD-L Deputy Mircia Giurgiu will sponsor a bill whose purpose is to make the victims of floods exempt from paying installments on loans used to buy houses and durable goods or to acquire tools and machines for business purposes. The exemption would expire on January 1, 2012. Giurgiu told the media that banks should show some solidarity, given the situation. (Romanian source)
