Turkish timber firm to pour millions into Romania |
Turkish parent company of door and timber product manufacturer Prolemn will be investing around 115 million Euro in expanding its wood processing operations in Romania. Prolemn general manager Dogan Gures told The Diplomat that after so far investing 50 million Euro in its factory in Reghin, the firm will expand their operations by 15 million at this site, while parent company Kastamanu Entegre (part of Hayat Holding) will invest 50 million Euro each in two other wood processing factories in Romania, as yet undisclosed locations. |
Connex calls on Ericsson as 3G partner |
Ericsson has been selected by Connex as the equipment and services supplier to roll out its third generation (3G) voice and data network in Romania. Financial arrangements were not available and the contract does not have “a limited timeframe”, Ilyana Guzman, group
function communicator at Ericsson's office told The Diplomat, adding the deal included WCDMA Core Network, WCDMA Radio Access Network, Network Rollout, system integration, competence development and support services. |
Italians ready to pick up state banks |
Italian Banca Intesa is aiming to penetrate the Romanian banking market through acquisition, according to Ziarul Financiar. This could see the firm picking up one of the two banks remaining to be privatised, national savings bank CEC, which has the largest network and Banca Comerciala Romana, which is worth somewhere in the region of one billion Euro. Meanwhile CEC is preparing to sell ten to 15 per cent of its
value on the Romanian Stock Exchange. |
Inflation just misses target |
Inflation for the whole of 2004 was 9.3 per cent, according to the office for national statistics, following a 0.6 per cent rise in December. This official figure just misses the target of nine per cent.
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Tariceanu tells Romania to slow down |
Prime Minister Calin Popescu-Tariceanu wants Romania to grow at a slower rate than the reported eight per cent growth in GDP in 2004, which he said was "not entirely healthy". The new premier believes a 5.25 per cent growth, similar to the World Bank's suggestions, is "better
as the economy cannot yet bear such high economic growth rates year on year." Part of the leap in growth was due to Romanians working abroad, which contributed up to two billion Euro to the economy last year. |
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Making it big:Tourism |
Romania received 1.6 million foreign
tourists last year, representing a 44 per
cent increase on 2003. The nation's
annual income from international
tourism is now about 800 million USD
and contributes four per cent to
Romanian GDP. The value of investment
in this field was between 300-400 million
Euro, twice more than last year, which
also saw 30 new hotels and 378 pensions
open. |
Petrom helps double annual FDI to
three billion |
Foreign invesments in 2004 will pass
three billion Euro, according to initial
results from the Romanian Agency for
Foreign Investments (ARIS), thanks
mainly to the privatization of Petrom. “Petrom put Romania on a real
competitive footing,” said Alexandru
Popa, last year's president of ARIS. “We
are starting to appreciate the real value
the international community expected of
Romania.” |
State to sell phone shares |
Fixed line operator Romtelecom is likely
to see its remaining 45.9 per cent stake
floated on the stock exchange by 2006, as
the new Ministry for Communications
and IT aims to sell its shares. The
majority 54.01 per cent is owned by
Greek phone firmOTEGroup. |
Tuborg continues
awarding environmental grants |
Tuborg Romania and the Romanian
branch of the Balcanic Association for
the Environment will continue awarding
grants to researchers specializing in
environmental protection. This year,
Tuborg Romania decided to grant over
one billion ROL (25,000 Euro) to these
projects, said Shachar Shaine the
company president, pictured above with
Roxana Cozma, Counselor for relations
with NGOs in the Ministry of Environment and Prof FK Vosniakos,
president of the Balcanic Association for
the Environment |
Home ownership loans receive EBRD
cash… |
European Bank for Reconstruction and
Development (EBRD) has lent Greekowned
Banc Post a second 20 million
Euro to support housing loans for
Romanians to buy, build or renovate their
homes and a further ten million Euro to
HVB Bank to fund its mortgage
programme. In Romania, mortgages now
account for around one billion Euro in
value, but lack long term financing. The
EBRD loan to Banc Post hopes to plug
this security gap with its 11 year-long
grant, while the HVB loan is over 12
years. |
…and so does small enterprise |
In addition the European Bank for
Reconstruction and Development has
leant Volksbank ten million Euro to help
it finance small and medium enterprises
(SMEs) and a further 22.5 million Euro to
Banca Transilvania to also assist finance
in this sector and in corporate and retail
businesses. |
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Carplant faces closure
without a buyer |
Craiova Daewoo will end its car
production this year unless the factory
can find a new buyer by the end of
December. The Ministry of Economy and
Commerce has the majority 51 per cent
stake in Daewoo Romania, which
includes the land's value. But the local
factory, which makes brands such as the
Matiz and Cielo, is suffering under debts
of around 800 billion USD to South
Korean creditors. |
EU grants loans for infrastructure |
European Investment Bank (EIB) is
granting a 16 million Euro loan to BRD – Groupe Societe Generale to fund small
and medium-sized projects in
environmental protection, energy and
energy savings and general infrastructure
improvement. This is the fourth loan
granted through BRD, and a figure
totalling 100 million has so far been
handed to the French-owned bank. The
EU long term finance institution has now
clocked up 3.3 billion Euro in loans to
Romania since 1990. |
Shiver me timbers! Here comes the
new Captain! |
President Basescu revisited his naval past
by checking out the two latest purchases
by the Romanian fleet: two frigates bought from the United Kingdom. King
Ferdinand has a top of the range cannon,
a landing pad for elicopters and 5,300
tons. 203 sailors are currently aboard the
vessel, which has seven decks and four
Rolls Royce turbines.
named King Ferdinand and Maria, |
Fixed phone network
opens for competition |
Fixed line operator RomTelecom will
make its wire network infrastructure
available to competitors. Its local loop
will be deregulated, allowing fixed
telephone firms more access to
customers in return for maintenance
costs, reports
Ziarul Financiar.
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Dutch bank on SME loans |
Netherlands Development Finance
Company (FMO) has given Banca
Transilvania a ten million Euro in credit,
so the bank can award loans to small and
medium enterprises. Last summer the
FMO granted a long term credit line to
BancaTiriac. |
Strong currency sees interest rates slashed |
Owing to inflation and the increasing value of the leu, the National Bank (BNR) has cut interest rates from 21 to 17 per cent, with a possibility that further cuts could take place in the near future. |
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