Millennium Bank launched a service package which includes a RON-denominated deposit and an investment fund
Millennium Bank launched a service package for retail clients which includes a RON-denominated deposit with a 10% interest a year and a three-month maturity, and an investment fund. The package includes the open-end investment fund Integro, managed by Pioneer Asset Management. Integro is a fund with a moderate investment risk due to its investment portfolio which includes fixed-revenue instruments and shares. Clients can withdraw money from the fund at any moment, without a fee, but the period recommended for the investment is of maximum two years. (Romanian source)
Banca Carpatica is launching OneSmart, the refinancing loan with a mortgage
Banca Comerciala Carpatica is launching OneSmart, the refinancing loan with a mortgage for retail clients. The loan can be RON or Euro denominated and is a solution for the refinancing of one or several loans without fees charged by the bank. The loan can reach EUR 300,000 or its lei equivalent on a period of maximum 35 years. (Romanian source)
BCR, the Romanian bank controlled by Austrian group Erste, has launched its own online trading platform, which lets retail investors trade stocks on the Bucharest, Vienna and Frankfurt markets. BCR is the second biggest broker to launch an online trading platform for small investors in the past year, after KBC Securities. (Romanian source)
Ministry of Finance rejects all bids from banks for the Treasury benchmark bonds tender
Ministry of Finance rejected all bids from banks at the tender for 3-year T-bonds, the third successive operation that was rejected. Banks asked interests above 7%, and the Ministry of Finance disagree. The value of the T-bond issuing was RON 500 million and banks subscribed over RON 810.5 million. The issue of bonds is one of the methods used by the Ministry of Finance to feed the country's budget deficit, which must not pass the 6.8% cap discussed with the IMF. (Romanian source)
UniCredit increased its estimate on Romania's economic contraction this year at 2.5% of the GDP from 0.9%
UniCredit increased its estimate on Romania's economic contraction this year at 2.5% of the GDP from 0.9% due to the negative impact the VAT increase has had on consumption and investments. The Italian group says Romania will see growth again in 2011 with a 1.7% economic increase. Also, the inflation will accelerate at 7.7% by December compared to 4.7% at the end of 2009. UniCredit expects the NBR to keep the key interest at 6.25% by H2/2011. Also, the budget deficit is estimated at 7% for this year compared to 7.4% in 2009 and at 5% for 2011. The government and the IMF have set a 6.8% budget deficit target for 2010. (Romanian source)
Tiriac Leasing resumes financing external car dealers
Tiriac Leasing, one of the top ten leasing companies before the financial crisis, has resumed its business relationship with car dealers which do not belong to the Tiriac group after a one-year pause. The leasing market contracted a dramatic 70% in 2009, falling from EUR 4.8 billion in 2008 to only EUR 1.2 billion. The market has continued to contract over the first quarter of this year. (Romanian source)
Competition Council approves Interbrands' takeover of Wella
The Competition Council announced yesterday, July 8, that it had approved the economic concentration resulting from the takeover of Wella Romania SRL by SC Interbrands Marketing Distributions SA. The Council concluded that there are no serious doubts regarding the compatibility of the economic concentration with a healthy business environment and that the transaction did not lead to the creation or consolidation of a position of domination on the relevant markets. (Romanian source)
Sibiu-based company Moara Cibin, part of the Boromir bakery and milling group, could merge with Amylon Sibiu and two other companies belonging to the same group
Sibiu-based company Moara Cibin, part of the Boromir bakery and milling group, could merge with Amylon Sibiu and two other companies belonging to the same group: Cerealcom Seica Mare and Panmed Medias. Amylon shareholders were summoned on August 16 to discuss the merger. The Boromir group is headed by businessman Constantin Boromiz. (Romanian source)
E ON will continue its investments policy after 5 years of presence in Romania
E ON, the main supplier and distributor of natural gas and electricity in the northern area of the country, will continue to develop the business in Romania and invested the most on the domestic market, according to the general manager of E ON Romania, Frank Hajdinjak. E.ON negotiates at the present with the state company Electrica for the takeover of 17% into E ON Moldova Furnizare and E ON Moldova Distributie, by exercising the right of option in the two companies, according to the privatization contract. The E ON energy group, based in Germany, entered the Romanian market in 2005 by the purchase of the natural gas distributor Distrigaz Nord and the distribution of electricity Electrica Moldova. E ON holds stakes in the following Romanian companies: Congaz, Distrigaz Vest Timisoara and Colonia Cluj-Napoca. (Romanian source)
Imotrust Arad sold an asset for EUR 9 million to a retail operator
Imotrust Arad sold an asset for EUR 9 million to a retail operator, the company announced on Thursday, without stating the type of the asset, its location or the buyer's name. The company also sold a plot of land for EUR 7 million this year, also to a retail operator, via Pic Arad and RND Auto Oradea, two of its branches. Imotrust Arad plans to begin four real estate projects this year worth EUR 18.6 million and to continue works for a residential compound. Some of the investments will be secured via a capital increase of RON 30.8 million. (Romanian source)
Bogaris sold 2,500 hectares of farming land for EUR 2 million
Spanish group Bogaris has recently sold 2,500 hectare of farming land in Corbii Mari, near the Bucharest-Pitesti motorway, after it decided to give up on its agricultural business in Romania and to produce olive trees in Chile and Portugal. The company did not want to post the value of the transaction but according to sources on the market the land was sold for EUR 2 million to a Spanish investor, the equivalent of EUR 800/hectare. Bogaris announced in 2007 that it would invest EUR 650 million in several real estate projects on the local market in Constanta, Alexandria, Ploiesti, Giurgiu and Ramnicu Valcea. Meanwhile, the company has completed two commercial projects in Alexandria and Giurgiu and the Ploiesti-based land was sold. The commercial project in Ramnicu Valcea will begin this year while the residential project announced in Constanta was postponed although the Zoning Plan had been obtained. The Constanta-based project would have 2,000 apartments in 15 blocks of flats and the investment amounts to EUR 450 million. (Romanian source)
Final Distribution began the second stage in the project for the development and expansion of logistic space in Baicoi, Prahova, which will be completed at the end of September 2010
Final Distribution, the importer of Gerard in Romania, began the second stage of the project for the development and expansion of logistic space in Baicoi, Prahova, which will be completed at the end of September 2010. The company will benefit from a storage space of 1,000 sqm and an exterior platform for unloading of merchandise which will span on 3,500 sqm. The total investment for the office buildings during the first stage of the project and the new expansion will cost EUR 800,000. (Romanian source)
The law that investors in green energy wanted the most was signed by the President
Law 220/2008, featuring the system used to promote the production of green energy, was signed by President Basescu at the beginning of this week. This is one of the laws that investors in green energy wanted the most to see signed by the President. The new form of the law features some changes from the original text passed in 2008. Investors in green energy say that Law 220 produced only partial effects and that the lack of friendly regulations was one of the reasons why the renewable energy industry is still held back in Romania. The promotion system is based on the issue of green certificates. Transelectrica will issue green certificates to producers for every MWh of green energy. Electricity providers, such as Electrica, must produce a certain amount of green energy every year, which is decided by the ANRE. The main beneficiaries of this law are CEZ, Energias de Portugal and Enel, which are building wind power parks. (Romanian source)
The Social Democrat Party is reluctant to team up with the National Liberals for a potential government
Victor Ponta, President of the Social Democrat Party (PSD), stated that the Social Democrats cannot wait for time to work in their favor through the natural erosion of popularity of the current ruling parties. He also stated that the PSD would categorically not join the PD-L and voiced his reluctance of joining the PNL. (Romanian source)
Senator Olguta Vasilescu, a spokeswoman for the Social Democrat Party (PSD), stated during a press conference held yesterday that the tax, amounting to EUR 4 per 100 kilometers of highway, which the Minister of Transport, Radu Berceanu, is planning to levy beginning with 2011, is unjustified. The Senator warned that no EU money would be spent until 2011 to build 100 kilometers of highway. (Romanian source)
