Volksbank Romania's assets stagnated in the first three months of the year at EUR 5.3 billion
Volksbank Romania's assets stagnated in the first three months of the year at EUR 5.3 billion, compared to December, but the bank's operational profits, calculated before the cost of risk, fell by 4% compared to the first quarter of 2009. In December 2009, the bank's assets amounted to EUR 5.25 billion. In the first three months of the year, the assets of Volksbank International, the company which controls the Romanian bank, stagnated at EUR 13.9 billion, according to the financial report of Austrian group Volksbank. (Romanian source)
ATE Bank Romania posted for Q1 net profits of RON 0.2 million
ATE Bank Romania posted for Q1 of this year net profits of RON 0.2 million, compared to a loss of EUR 1.2 million in the corresponding period of last year. The profit, which was calculated according to the international financial reporting standards, was fueled by the doubling of operations revenues, which amounted to EUR 6.3 million, according to information released by ATE Bank in Athens. The Romanian assets of ATE Bank climbed by EUR 17 million in Q1, reaching EUR 353 million. (Romanian source)
Installments which are more than 90 days overdue increased to 6.7% of Piraeus Bank's portfolio at the end of Q1
Installments which are more than 90 days overdue increased to 6.7% of Piraeus Bank's portfolio at the end of Q1, compared to 5.8% at the end of last year, according to the data posted by the parent bank in Athens. The Greek reported a loan volume of EUR 3.38 billion, down 3% from a year ago. Throughout 2009, the portfolio has decreased constantly, from EUR 3.57 billion at the end of 2008. (Romanian source)
Raiffeisen Capital Investment has lowered the target price for Transelectrica shares by 9%, down to RON 19.2 per share
Raiffeisen Capital Investment has lowered the target price for Transelectrica shares by 9%, down to RON 19.2 per share. The decision was prompted by pessimistic estimates regarding the company's revenues. However, RCI maintained the " hold '' advice given to investors in Transelectrica shares. Analysts estimate that Transelectrica will post net profits of RON 38.9 million, 60% below the initial estimates. (Romanian source)
Eureko to put Euroclinic Hospital&Medical Centers up for sale
The Eureko group will put Euroclinic Hospital&Medical Centers up for sale for EUR 30 million, according to sources close to the healthcare services market. EHMC owns a hospital and several clinics. In 2008, Eureko negotiated with several foreign company the sale of Euroclinic, but the advent of the economic crisis forced the company to end all negotiations. EHMC posted profits in 2009, for the first time since its opening in 2005, and a 35% increase in turnover. (Romanian source)
Adrian Vasilescu, NBR: The VAT increase from 19% to 24%, proposed by the IMF, would have led to a two-digit inflation rate and would have turned Romania into " Europe's black sheep ''
The VAT increase from 19% to 24%, proposed by the IMF, would have led to a two-digit inflation rate and would have turned Romania into " Europe's black sheep '' without the possibility of borrowing money from external markets although it depends on foreign capital, says Adrian Vasilescu, the councilor of the NBR Governor. " With a 15% inflation, we'd be Europe's black sheep. We cannot go borrow a single dollar or a Euro. We are a country that depends on foreign capital. We cannot make things work only with the capital accumulated in this country because it is little '' said Adrian Vasilescu. The NBR representative said an accelerated increase in inflation rate would lead to an exit from recession that would be delayed " by years ''. Also, the NBR official admits that the measures set by the Government are not anti-crisis measures. (Romanian source)
Romanian banks bought eurobonds worth more than EUR 1.5 billion issued by the Ministry of Finance
Romanian banks bought off the foreign markets eurobonds worth more than EUR 1.5 billion issued by the Ministry of Finance, according to data centralized by the National Bank of Romania. The banks hold securities issued by the Romanian Government amounting to 14.7% of their aggregated assets, RON 40.7 billion of which being accounted for by domestic issues and RON 6.4 billion by eurobonds. The latest issue of eurobonds matures in five years, features a coupon of 5% and a total yield of 5.17% per year. Investors subscribed EUR 4.9 billion during this issue. (Romanian source)
The budget deficit climbed by nearly EUR 1 billion in April
The budget deficit climbed by nearly EUR 1 billion in April, reaching 2.2% of the GDP, as expenses soared 3.4% during the first four months of 2009 and revenues continued to contract. At the end of April, the state budget was performing pretty much as expected by the economic analysts, who stated that the authorities have managed to meet the RON 8.25 billion deficit target for the first quarter, mainly by postponing certain payments to the private sector and sacrificing investments. The budget deficit climbed to 1.5% of the GDP in March and passed even the 1.9% of the GDP posted in 2009. ING Bank analysts stated that this year's budget dceficit could pass last year's 7.4% of the GDP. (Romanian source)
The Government adopted the IMF forecast that stipulates a 0.5% economic contraction for 2010
The Government adopted the IMF forecast that stipulates a 0.5% economic contraction for 2010 and the Ministry of Finance will adjust the budget based on this figure. Gheorghe Gherghina, a Secretary of State with the Ministry of Finance, stated that the latest nominal GDP received by the Ministry from the National Forecast Commission (CNP) was RON 510.4 billion, down 0.5% year on year. (Romanian source)
The percentage of unpaid debt accounting for payments left behind in the total of retail and business loans reached 5.5% in April from 3.88% at the end of last year. The level is more than double the figures seen last April, according to the NBR data. For the first time, the debts from the refunding of foreign currency loans exceeded in volume those accrued from RON-denominated loans. " We are somewhat surprised by the weak dynamics of the RON-denominated loans. It came amid a drop in interest rates although we have to admit that costs continue to be high '' said Nicolae Alexandru Chidesciuc, the Chief Economist of ING Bank. (Romanian source)
Voestalpine announced a greenfield investment project in Giurgiu steel processing unit
Voestalpine announced, last week, a greenfield investment project in Giurgiu steel processing unit, a project estimated at approximately EUR 20 million. The unit will process steel parts for the automotive, home appliances and constructions industries. The main clients of the new unit are expected to be car makers Dacia and Ford, their suppliers and companies from the home appliances and construction industries. (Romanian source)
Enel Distributie Dobrogea will spend up to RON 12.3 million for installing new average and low tension installations in Calarasi or upgrading the existing ones
Enel Distributie Dobrogea will spend between RON 8.1 and RON 12.3 million for installing new average and low tension installations in Calarasi or upgrading the existing ones. The 17-month contract will be put up for bidding in an open tender. (Romanian source)
Elena Udrea, Minister of Tourism and Regional Development: If the Government is proved wrong and unable to enforce the anti-crisis measures, it should resign
Economic recession, street pressure and the need to balance the budget are among the top issues for the Boc Cabinet and the PD-L at this moment and the Prime Minister and party must find a solution to them at any cost. Elena Udrea, Minister of Tourism and Regional Development, stated yesterday, May 30, that if the Government is proved wrong and unable to enforce the anti-crisis measures, it should resign. (Romanian source)
Most Bucharest residents give passing marks to Mayor Sorin Oprescu
Most Bucharest residents give passing marks to Mayor Sorin Oprescu, but the number of those who claim to be very satisfied with the Mayor's performance is quite small. 5 out of 10 is the most frequent mark offered by Bucharest's residents, according to a survey conducted by the Sociology Division of the Political Sciences College of the SNSPA. (Romanian source)
Victor Ponta, President of the Social Democrat Party (PSD), stated on Saturday, in Vaslui, that the PSD will no longer pursue alliances with other parties and that " the only alliance acceptable to social democrats is that of PSD and PSD ''. The PSD leader also said that Mircea Geoana and his brother-in-law, the President of Eximbank, are the only two PSD members who kept their jobs under the new ruling coalition. (Romanian source)
