The business in Romania blog writes about the Romanian business landscape, doing business in Romania, investing in Romania business and debating on business issues in Romania.
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Saturday, October 30, 2004
MinMet plc, the international mining and exploration group, announces that subsequent to an evaluation of its operation
in Romania, it has granted a Romanian licence to Transgold S.A ("Transgold"),
its partner in the Baia Mare project. This licence permits Transgold to utilise
the EMML Process on the existing Baia Mare project and also to investigate its
application on additional resources in Romania. Transgold will, in particular,
target the long established producing gold district of the Carpathian Belt.
Eurogold is a 50% shareholder in Transgold.
Under this new licence, all future operational aspects involving test work,
permitting, transportation of ore and processing in Romania will be financed by
Transgold. MinMet will continue to receive a modified royalty of up to US$2/t
for ongoing projects focused around Baia Mare and has agreed with Transgold an
additional royalty of US$10/oz of gold produced from new projects in Romania
utilising the EMML Process.
Posted by Mihai Botea : 10/30/2004 02:24:00 PM
in Romania, it has granted a Romanian licence to Transgold S.A ("Transgold"),
its partner in the Baia Mare project. This licence permits Transgold to utilise
the EMML Process on the existing Baia Mare project and also to investigate its
application on additional resources in Romania. Transgold will, in particular,
target the long established producing gold district of the Carpathian Belt.
Eurogold is a 50% shareholder in Transgold.
Under this new licence, all future operational aspects involving test work,
permitting, transportation of ore and processing in Romania will be financed by
Transgold. MinMet will continue to receive a modified royalty of up to US$2/t
for ongoing projects focused around Baia Mare and has agreed with Transgold an
additional royalty of US$10/oz of gold produced from new projects in Romania
utilising the EMML Process.
Posted by Mihai Botea : 10/30/2004 02:24:00 PM
Friday, October 29, 2004
On my way from Munich last week I saw in 8 hours about 8 trucks full of Logans going out of the country...Seems Dacia is doing pretty well.
As one reputated auto magazine from Romania said, with 7500 Euro (the price of an average Logan) you can only buy heated windows, leather and nice paining for a Mercedes....but the car is extra-price.
You can see a nice history of Dacia being bought by Renault here.
Posted by Mihai Botea : 10/29/2004 06:14:00 PM
As one reputated auto magazine from Romania said, with 7500 Euro (the price of an average Logan) you can only buy heated windows, leather and nice paining for a Mercedes....but the car is extra-price.
You can see a nice history of Dacia being bought by Renault here.
Posted by Mihai Botea : 10/29/2004 06:14:00 PM
Alexander Krasner (Alro president), Peter Braun (vice president) and Sam Manaktala (a board member) from ALRO Slatina resigned today, unofficial sources say. The resignations will be made official on 18 November. It is expected that also the financial manager will resign.
The resignations might be connected to Russian businessman Vitali Mischitsky, the man that is believed to be the "man from behind" in ALRO's ownership.
More details in the following days.
Posted by Mihai Botea : 10/29/2004 06:05:00 PM
The resignations might be connected to Russian businessman Vitali Mischitsky, the man that is believed to be the "man from behind" in ALRO's ownership.
More details in the following days.
Posted by Mihai Botea : 10/29/2004 06:05:00 PM
Bulgaria is qualified to join the European Union but Romania should accelerate its reforms so that it can sign an accession treaty as planned early next year, the Dutch EU presidency said.
"I think that developments in Bulgaria are extremely positive in economic fields and other fields so Bulgaria really qualifies for membership," Dutch Deputy Prime Minister Gerrit Zalm said after a meeting with Bulgarian Prime Minister Simeon Saxe-Coburg.
"We also have Romania which is more or less in the same package,"Zalm, whose country holds the rotating EU presidency, added.
"I hope that Romania will speed up its progress, then I think we can expect to sign the treaty in the first half of next year," said Zalm, standing in for Prime Minister Jan Peter Balkenende who is recovering form an operation.
Balkenende is expected to take up his duties as of tomorrow when he will be present at a signing ceremony in Rome for the new EU constitution.
"We should not blame Bulgaria for things that are not happening enough in Romania so my hope is more in Romania's progress than wanting to keep Bulgaria waiting," Zalm told Saxe-Coburg.
Sofia has already completed the negotiations with the EU and hopes to sign an accession treaty with the EU early next year.
In contrast to Bulgaria Romania still has to complete some areas of its entry dossier, notably in environmental, competition and legal fields. The two countries are scheduled to join the EU at the beginning of 2007.
Posted by Iulia Stoicescu : 10/29/2004 02:04:00 PM
"I think that developments in Bulgaria are extremely positive in economic fields and other fields so Bulgaria really qualifies for membership," Dutch Deputy Prime Minister Gerrit Zalm said after a meeting with Bulgarian Prime Minister Simeon Saxe-Coburg.
"We also have Romania which is more or less in the same package,"Zalm, whose country holds the rotating EU presidency, added.
"I hope that Romania will speed up its progress, then I think we can expect to sign the treaty in the first half of next year," said Zalm, standing in for Prime Minister Jan Peter Balkenende who is recovering form an operation.
Balkenende is expected to take up his duties as of tomorrow when he will be present at a signing ceremony in Rome for the new EU constitution.
"We should not blame Bulgaria for things that are not happening enough in Romania so my hope is more in Romania's progress than wanting to keep Bulgaria waiting," Zalm told Saxe-Coburg.
Sofia has already completed the negotiations with the EU and hopes to sign an accession treaty with the EU early next year.
In contrast to Bulgaria Romania still has to complete some areas of its entry dossier, notably in environmental, competition and legal fields. The two countries are scheduled to join the EU at the beginning of 2007.
Posted by Iulia Stoicescu : 10/29/2004 02:04:00 PM
Ok, as I am quite a liberal person, I want to add some transparency to this blog's purpose and way of working.
Basically, we are a group of people who like to post news and analisys about business in Romania, the investing environment and more (you will find some off-topic posts here as well, and this is very fine).
This blog is currently non-profit one and it will remain this way for quite a long time I imagine.
Its purpose is to become an important source of information for foreign people interested in the Romanian business environment and for Romanian people interested in their country's business.
The ADS that you see on the top of the blog are Google ads and I hope they are relevant for you. You might use them to find more information on Romania.
Also, the money generated by these ADS will be reinvested in the blog (advertising, a more friendly domain-name, some incentives, some redesign, some strategic partnerships, etc.) The destination of those money (when they will be available) will be discussed in a completely democratic way between the contributors of this blog.
I encourage you to provide us with feedback at mihai.botea@gmail.com.
All the best,
The Business-Romania-Blog Team.
Posted by Mihai Botea : 10/29/2004 01:22:00 PM
Basically, we are a group of people who like to post news and analisys about business in Romania, the investing environment and more (you will find some off-topic posts here as well, and this is very fine).
This blog is currently non-profit one and it will remain this way for quite a long time I imagine.
Its purpose is to become an important source of information for foreign people interested in the Romanian business environment and for Romanian people interested in their country's business.
The ADS that you see on the top of the blog are Google ads and I hope they are relevant for you. You might use them to find more information on Romania.
Also, the money generated by these ADS will be reinvested in the blog (advertising, a more friendly domain-name, some incentives, some redesign, some strategic partnerships, etc.) The destination of those money (when they will be available) will be discussed in a completely democratic way between the contributors of this blog.
I encourage you to provide us with feedback at mihai.botea@gmail.com.
All the best,
The Business-Romania-Blog Team.
Posted by Mihai Botea : 10/29/2004 01:22:00 PM
Fake Puma and Adidas burned down to ashes....
80% of perfumes, branded clothes, shoes and mobile phones are fake...
97% of fake computer games come from Romania....
244 millions euro annual estimated loss....
More details HERE.
Posted by Mihai Botea : 10/29/2004 11:38:00 AM
80% of perfumes, branded clothes, shoes and mobile phones are fake...
97% of fake computer games come from Romania....
244 millions euro annual estimated loss....
More details HERE.
Posted by Mihai Botea : 10/29/2004 11:38:00 AM
Seems Reader's Digest International has done some good job expanding to Romania and other East European Countries. Here is why:
In the first quarter, RDI revenues were $215 million, versus $216 million in the year-ago period. Operating profits improved to $1 million, despite an estimated $(2) million in incremental promotion expense timing, versus a loss of $(1) million in last year's quarter. Excluding the effects of foreign currency translation, revenues declined by 8 percent. Profits improved in most international markets, led by gains in the larger markets-Germany, Australia, the United Kingdom, France and Poland. Most markets benefited from lower operating costs and improved marketing execution. These improvements were partially offset by further investment in new initiatives launched last year including new market launches in Romania, Croatia, Slovenia and Ukraine, which are all performing ahead of internal expectations. The company also invested in tests of a Reiman-style magazine in Brazil and a new "English as a Second Language" product in several markets.
Read full press release here.
Posted by Mihai Botea : 10/29/2004 11:17:00 AM
In the first quarter, RDI revenues were $215 million, versus $216 million in the year-ago period. Operating profits improved to $1 million, despite an estimated $(2) million in incremental promotion expense timing, versus a loss of $(1) million in last year's quarter. Excluding the effects of foreign currency translation, revenues declined by 8 percent. Profits improved in most international markets, led by gains in the larger markets-Germany, Australia, the United Kingdom, France and Poland. Most markets benefited from lower operating costs and improved marketing execution. These improvements were partially offset by further investment in new initiatives launched last year including new market launches in Romania, Croatia, Slovenia and Ukraine, which are all performing ahead of internal expectations. The company also invested in tests of a Reiman-style magazine in Brazil and a new "English as a Second Language" product in several markets.
Read full press release here.
Posted by Mihai Botea : 10/29/2004 11:17:00 AM
Thursday, October 28, 2004
BUCHAREST, Oct 27 (Reuters) - The month-on-month rise in Romanian consumer prices is forecast at 0.8 percent on average for the last quarter, which will secure a single digit inflation goal, Finance Minister Mihai Tanasescu said on Wednesday.
"The average monthly inflation is estimated at 0.8 percent over October to December. This allows us to bring inflation to under 10 percent this year," Tanasescu told reporters.
Latest data showed year-on-year inflation stood at 11.1 percent last month versus 14.1 percent at the end of 2003.
Posted by Mihai : 10/28/2004 03:14:00 PM
"The average monthly inflation is estimated at 0.8 percent over October to December. This allows us to bring inflation to under 10 percent this year," Tanasescu told reporters.
Latest data showed year-on-year inflation stood at 11.1 percent last month versus 14.1 percent at the end of 2003.
Posted by Mihai : 10/28/2004 03:14:00 PM
After a series of tops where Romania is constantly on last places, finally some good news: We are on second place (after Russia) for NATO programs.
Currently, Romania is involved in about 15 NATO programs with a total value of about 15 billion ROL. Russia is involved in about 40 projects.
Most projects involve innovations in areas like: new materials, nanotechnology, informatics.
Posted by Mihai Botea : 10/28/2004 02:36:00 PM
Currently, Romania is involved in about 15 NATO programs with a total value of about 15 billion ROL. Russia is involved in about 40 projects.
Most projects involve innovations in areas like: new materials, nanotechnology, informatics.
Posted by Mihai Botea : 10/28/2004 02:36:00 PM
Source: seeurope.net
EU candidate countries Romania and Bulgaria will continue to post moderate government deficits over the next two years, while Croatia and Turkey are forecast to improve their public finances, the European Commission said. All four will record sustainable growth this year, next, and in 2006, the commission said in its autumn economic forecasts. 'In Romania and even more so in Bulgaria, general government deficits are projected to remain quite moderate,' it said. 'In Croatia and particularly in Turkey, where deficits are presently at higher levels, government deficits are expected to narrow further.' Both Romania and Bulgaria will be within the 3 pct of GDP deficit limit set under the EU's stability and growth pact. Romania's government deficit is expected to rise slightly to 1.7 pct of GDP in 2005 from 1.6 pct this year and to reach 2.2 pct in 2006. Bulgaria's deficit is seen at just 1.0 pct in 2005 compared with a projected surplus of 0.5 pct in 2004. In 2006, the budget balance is expected to be at zero. In Croatia, the budget deficit is expected to amount to 3.9 pct in 2005, down from 4.5 pct this year, and to fall to 3.6 pct during 2006. The commission said cost savings from reforms of the health sector and public administration will result a narrower deficit in 2005. Turkey's deficit for 2005 is expected to fall to 5.7 pct from a projected 7.2 pct this year, and then to decline to 5.0 pct in 2006. 'Continued fiscal discipline and declining financing costs will be key in this respect,' said the commission. Rising labour productivity and an increase in efficiency of capital stock will provide a basis for the continued expansion of GDP in the candidate countries. Growth will also be boosted by private consumption and investment, it said. Bulgaria's GDP growth rate for 2004 is expected to amount to 5.5 pct, rising to 6.0 pct in 2005 and falling off slightly to 4.5 pct in 2006. Croatia meanwhile is expected to record growth of 3.8 pct this year, 4.0 pct next year and 4.5 pct in 2006. In Romania and Turkey, the growth rates for this year will be exceptionally high but will be followed by some deceleration in 2005 and 2006. In Romania, 2004 growth is seen at 7.2 pct. In 2005, this is expected to tail off to 5.6 pct and then in 2006 to 5.1 pct. Turkey's growth rate will be 8.5 pct this year, according to the commission's forecasts. In 2005, growth is expected to amount to 5 pct and then in 2006 to 5.3 pct.
Posted by Mircea B : 10/28/2004 01:54:00 PM
EU candidate countries Romania and Bulgaria will continue to post moderate government deficits over the next two years, while Croatia and Turkey are forecast to improve their public finances, the European Commission said. All four will record sustainable growth this year, next, and in 2006, the commission said in its autumn economic forecasts. 'In Romania and even more so in Bulgaria, general government deficits are projected to remain quite moderate,' it said. 'In Croatia and particularly in Turkey, where deficits are presently at higher levels, government deficits are expected to narrow further.' Both Romania and Bulgaria will be within the 3 pct of GDP deficit limit set under the EU's stability and growth pact. Romania's government deficit is expected to rise slightly to 1.7 pct of GDP in 2005 from 1.6 pct this year and to reach 2.2 pct in 2006. Bulgaria's deficit is seen at just 1.0 pct in 2005 compared with a projected surplus of 0.5 pct in 2004. In 2006, the budget balance is expected to be at zero. In Croatia, the budget deficit is expected to amount to 3.9 pct in 2005, down from 4.5 pct this year, and to fall to 3.6 pct during 2006. The commission said cost savings from reforms of the health sector and public administration will result a narrower deficit in 2005. Turkey's deficit for 2005 is expected to fall to 5.7 pct from a projected 7.2 pct this year, and then to decline to 5.0 pct in 2006. 'Continued fiscal discipline and declining financing costs will be key in this respect,' said the commission. Rising labour productivity and an increase in efficiency of capital stock will provide a basis for the continued expansion of GDP in the candidate countries. Growth will also be boosted by private consumption and investment, it said. Bulgaria's GDP growth rate for 2004 is expected to amount to 5.5 pct, rising to 6.0 pct in 2005 and falling off slightly to 4.5 pct in 2006. Croatia meanwhile is expected to record growth of 3.8 pct this year, 4.0 pct next year and 4.5 pct in 2006. In Romania and Turkey, the growth rates for this year will be exceptionally high but will be followed by some deceleration in 2005 and 2006. In Romania, 2004 growth is seen at 7.2 pct. In 2005, this is expected to tail off to 5.6 pct and then in 2006 to 5.1 pct. Turkey's growth rate will be 8.5 pct this year, according to the commission's forecasts. In 2005, growth is expected to amount to 5 pct and then in 2006 to 5.3 pct.
Posted by Mircea B : 10/28/2004 01:54:00 PM
I recently found the Romanian Leader Website at www.romanianleader.com.
It is a very interesting website, featuring analisys for economic and business news, leaders profiles for Romanian entrepreneurs and Romanian businessmen and more.
Unfortunatelly, only in Romanian...no english version yet.
Posted by Mihai Botea : 10/28/2004 01:51:00 PM
It is a very interesting website, featuring analisys for economic and business news, leaders profiles for Romanian entrepreneurs and Romanian businessmen and more.
Unfortunatelly, only in Romanian...no english version yet.
Posted by Mihai Botea : 10/28/2004 01:51:00 PM
Unicredito Italiano SpA said it plans to cut about 3,000 jobs as part of its 2004-2007 business plan.
In a presentation to analysts, Unicredito said annual cost savings are scheduled to reach 263 mln eur in 2007 and rise to 293 mln after 2007, it said.
In other measures to improve synergies, the group will set up a central operating centre in Romania for its East and Central European business, it said.
On real estate rationalisation, Unicredito said it will 'optimise' its non-core assets, and the corporate structure will be rationalised with the reduction of number of units.
The bank will take a 'prudent' attitude and will not revalue its real estate nor revalue its stake in the Bank of Italy, it said.
Net profits for the group should rise by an annual average of 2-4 pct in 2005 to 2007 thanks to the change in accounting, which includes a less than 2 pct rise expected for 2005.
Under IAS, net interest income should rise, operating costs should rise because of the impact of stock option plans, goodwill depreciation will fall, and net provisions on new doubtful loans will rise, the bank said
Posted by Iulia Stoicescu : 10/28/2004 01:12:00 PM
In a presentation to analysts, Unicredito said annual cost savings are scheduled to reach 263 mln eur in 2007 and rise to 293 mln after 2007, it said.
In other measures to improve synergies, the group will set up a central operating centre in Romania for its East and Central European business, it said.
On real estate rationalisation, Unicredito said it will 'optimise' its non-core assets, and the corporate structure will be rationalised with the reduction of number of units.
The bank will take a 'prudent' attitude and will not revalue its real estate nor revalue its stake in the Bank of Italy, it said.
Net profits for the group should rise by an annual average of 2-4 pct in 2005 to 2007 thanks to the change in accounting, which includes a less than 2 pct rise expected for 2005.
Under IAS, net interest income should rise, operating costs should rise because of the impact of stock option plans, goodwill depreciation will fall, and net provisions on new doubtful loans will rise, the bank said
Posted by Iulia Stoicescu : 10/28/2004 01:12:00 PM
Not as bad as Japan, but this morning I heard that an earthquake shaked Romania...pleople all around me are talking about this...
Well, I was sleeping so I didn't feel a think but I imagine it was pretty bad (5.8 degrees on a Richter scale).
More (official) details here. Also, KIT has a good post about this, with more official links.
Posted by Mihai Botea : 10/28/2004 11:33:00 AM
Well, I was sleeping so I didn't feel a think but I imagine it was pretty bad (5.8 degrees on a Richter scale).
More (official) details here. Also, KIT has a good post about this, with more official links.
Posted by Mihai Botea : 10/28/2004 11:33:00 AM
Wednesday, October 27, 2004
Since there are only 6 days until the US elections I thought it might be interesting to read this article about the experience of an American citizen in Romania during Mr G. W. Bush visit in Bucharest.
He is is the writer and director of the anti-war trilogy of plays that began in January 2003 with The Madness of George Dubya.’ And it seems that it…al started here in Bucharest…
Posted by Cristian C. Francu : 10/27/2004 10:43:00 PM
He is is the writer and director of the anti-war trilogy of plays that began in January 2003 with The Madness of George Dubya.’ And it seems that it…al started here in Bucharest…
Posted by Cristian C. Francu : 10/27/2004 10:43:00 PM
The third annual press freedom index report has been published here.
You can see that Romania is currently on the 70th place, while it was on 59 one year ago...so thinks are going worse, as it seems.
First place (with a score of 0,5) belongs to Denmark, Finland (also the country with the lowest corruption), Iceland, Ireland, Netherlands, Norway, Slovakia (!!) and Switzerland.
The last places belong to North Korea (scored 107,5), Cuba (106,83) and Burma (103,63).
Posted by Mihai Botea : 10/27/2004 02:09:00 PM
You can see that Romania is currently on the 70th place, while it was on 59 one year ago...so thinks are going worse, as it seems.
First place (with a score of 0,5) belongs to Denmark, Finland (also the country with the lowest corruption), Iceland, Ireland, Netherlands, Norway, Slovakia (!!) and Switzerland.
The last places belong to North Korea (scored 107,5), Cuba (106,83) and Burma (103,63).
Posted by Mihai Botea : 10/27/2004 02:09:00 PM
Romania's president, Ion Iliescu, recently made a visit together with Adrian Nastase and Mircea Geoana (PSD's candidates for the presidential / government elections) in Craiova.
Of course, he was asked by the reporters if he was doing election's campaign for Adrian Nastase and Mirce Geoana but he denied this is a very unfriendly way and using a very rood language (Romanian language: "Voi sinteti obsedati de aceasta chestie. Aici am venit in calitate de presedinte al tarii. Unde ai vazut campanie electorala in tot ce facem?! Va rog sa ma lasati in pace cu asemenea chestii!").
Going back to his behaviour, he was in the middle of a typical election's campaign, as all of the PSD staff were getting as close as possible to the crowd and were doing everything they could to become popular.
On the other hand, CURS released their latest elections report where Adrian Nastasse has about 42% and Traian Basescu has about 38%. The error margin is 2,5 percentual points , so if Adrian Nastase is in fact at 39,5% ( 42 - 2,5) and Basescu is at 40,5 (38 + 2,5) we have a winner !!
Cheers !
Posted by Mihai Botea : 10/27/2004 01:59:00 PM
Of course, he was asked by the reporters if he was doing election's campaign for Adrian Nastase and Mirce Geoana but he denied this is a very unfriendly way and using a very rood language (Romanian language: "Voi sinteti obsedati de aceasta chestie. Aici am venit in calitate de presedinte al tarii. Unde ai vazut campanie electorala in tot ce facem?! Va rog sa ma lasati in pace cu asemenea chestii!").
Going back to his behaviour, he was in the middle of a typical election's campaign, as all of the PSD staff were getting as close as possible to the crowd and were doing everything they could to become popular.
On the other hand, CURS released their latest elections report where Adrian Nastasse has about 42% and Traian Basescu has about 38%. The error margin is 2,5 percentual points , so if Adrian Nastase is in fact at 39,5% ( 42 - 2,5) and Basescu is at 40,5 (38 + 2,5) we have a winner !!
Cheers !
Posted by Mihai Botea : 10/27/2004 01:59:00 PM
The guys from www.blogshares.com had a great idea creating a virtual stock market for blogs.
You can add your blog for free (like doing an IPO) and then people can start traiding your stocks.
You also get some cash to start traiding on your own and get rich in fantasy-dollars.
You can start trainding stocks for the Business Romania Blog HERE.
Posted by Mihai Botea : 10/27/2004 11:26:00 AM
You can add your blog for free (like doing an IPO) and then people can start traiding your stocks.
You also get some cash to start traiding on your own and get rich in fantasy-dollars.
You can start trainding stocks for the Business Romania Blog HERE.
Posted by Mihai Botea : 10/27/2004 11:26:00 AM
Tuesday, October 26, 2004
Here is a list of great Business Magazines around the world. Enjoy:
BizJournals
Comprehensive resource for local business.
Business 2.0
Quality magazine about insight, tools, and advantage in e-business.
Business Week
Prominent magazine covering global business news.
Context
Magazine for senior executives about the effects of technology and digital strategy for modern businesses.
Dismal Scientist
Quality economic analysis and data.
Entrepreneur
Offers entrepreneurs the information, services and expert advice to ensure small business success.
Fast Company
Features the latest business news and trends, leading-edge entrepreneurs and the very fastest growing companies.
Financial Times
Leading newspaper of international business, finance, politics, and economics.
Forbes
Contains articles for CEOs and individual investors alike. Articles include profiles of companies and private investors, as well as helpful statistics.
Fortune
Columns include features on the marketplace, tech movers and shakers, career trends, U.S. politics, and European business.
Harvard Business Review
Premier forum of the business world written by authorities in business and business education.
Inc Magazine
Provides small business resources and advice.
My Business Magazine
Knowledge, tools and resources to help small business owners succeed.
nPost.com
Find interviews with CEOs, Founders, Chairmen about the issues and opportunities facing business today.
Red Herring
Technology business news, analysis, and research.
Reed Business
Portfolio of more than 100 market leading publications, newsletters, directories and reference books.
strategy+business
Business magazine for senior business executives.
Posted by Mihai Botea : 10/26/2004 07:20:00 PM
BizJournals
Comprehensive resource for local business.
Business 2.0
Quality magazine about insight, tools, and advantage in e-business.
Business Week
Prominent magazine covering global business news.
Context
Magazine for senior executives about the effects of technology and digital strategy for modern businesses.
Dismal Scientist
Quality economic analysis and data.
Entrepreneur
Offers entrepreneurs the information, services and expert advice to ensure small business success.
Fast Company
Features the latest business news and trends, leading-edge entrepreneurs and the very fastest growing companies.
Financial Times
Leading newspaper of international business, finance, politics, and economics.
Forbes
Contains articles for CEOs and individual investors alike. Articles include profiles of companies and private investors, as well as helpful statistics.
Fortune
Columns include features on the marketplace, tech movers and shakers, career trends, U.S. politics, and European business.
Harvard Business Review
Premier forum of the business world written by authorities in business and business education.
Inc Magazine
Provides small business resources and advice.
My Business Magazine
Knowledge, tools and resources to help small business owners succeed.
nPost.com
Find interviews with CEOs, Founders, Chairmen about the issues and opportunities facing business today.
Red Herring
Technology business news, analysis, and research.
Reed Business
Portfolio of more than 100 market leading publications, newsletters, directories and reference books.
strategy+business
Business magazine for senior business executives.
Posted by Mihai Botea : 10/26/2004 07:20:00 PM
The Romanian deputies decided on Thursday that the National Company "Henri Coandă Otopeni Airport" will benefit from a tax exemption until the end of 2006. This way, the company will not pay any profit taxes until the beginning of 2007.
The airport originally benefited from a tax ecemption until 2012, but the deputies decided to shorten this period by 6 years. I wonder why ? Did they find it to be in too good condition?
Posted by Mihai Botea : 10/26/2004 07:09:00 PM
The airport originally benefited from a tax ecemption until 2012, but the deputies decided to shorten this period by 6 years. I wonder why ? Did they find it to be in too good condition?
Posted by Mihai Botea : 10/26/2004 07:09:00 PM
Oil and natural gas company Wintershall from Germany will enter in the coming weeks Romania's natural gas market, through the joint venture Wirom Gas, Ziarul Financiar daily informs. Wintershall is now extending its businesses on the Romanian market, from production and trade with natural gas imported from Russia, by setting-up local distributions in southern Romania. Wirom Gas will next week announce the setting-up of the first natural gas distribution in Turnu Magurele (south), the investment standing sat some 1.5 million euros. Wirom Gas, one of the most important importers of gas from Russia, has recently increased its share capital by 1 million euro to be able to set up gas distributions in southern Romanian localities such as Turnu Magurele, Alexandria, Oltenita and Giurgiu. Wirom Gas posted 27.2 million euros in 2003 turnover.
Posted by Mircea B : 10/26/2004 03:45:00 PM
Posted by Mircea B : 10/26/2004 03:45:00 PM
Lakshmi Mittal, who is based in the UK, yesterday set his seal on the consolidation of the global steel industry with a $17.8bn (£10bn) double merger to create the world's largest producer. Ispat Steel, where Mr Mittal has a 77% holding, is reversing into his family's privately held LNM Group and at the same time buying America's International Steel Group.
Ispat is paying $13.3bn in shares for LNM as part of a package that will see the selling shareholders, which include the Mittal family, pick up a one-off dividend of $2bn. Meanwhile, Ispat is offering cash and paper for ISG, which values the US group at around $4.5bn.
The deal will leave the Mittal family with an 88% holding in the new entity that will be called Mittal Steel.
The group, which will have a market capitalisation of about $21bn, will have an annual production capacity of some 70m tonnes - outstripping the world's current leader, Acelor.
Last year LNM, Ispat and ISG produced 48.8m tonnes of steel, according to the International Iron and Steel Institute.
"We are changing the entire world steel map," said ISG chairman Wilbur Ross. The formation of Mittal Steel would create the same sort of change in the global steel industry that the creation of ISG, which includes assets of companies such as Bethlehem Steel and Weirton Steel, had done in the US, Mr Ross said.
Mr Mittal was equally upbeat. "We are creating a new global powerhouse in the steel sector," he said. Mittal Steel will employ some 165,000 people in 14 countries in North America, Asia, Europe and Africa.
Mr. Mittal also is the owner of the ISPAT SIDEX Steel company in Galati, Romania and of TEPRO company in Iasi, Romania.
Posted by Mihai Botea : 10/26/2004 01:03:00 PM
Ispat is paying $13.3bn in shares for LNM as part of a package that will see the selling shareholders, which include the Mittal family, pick up a one-off dividend of $2bn. Meanwhile, Ispat is offering cash and paper for ISG, which values the US group at around $4.5bn.
The deal will leave the Mittal family with an 88% holding in the new entity that will be called Mittal Steel.
The group, which will have a market capitalisation of about $21bn, will have an annual production capacity of some 70m tonnes - outstripping the world's current leader, Acelor.
Last year LNM, Ispat and ISG produced 48.8m tonnes of steel, according to the International Iron and Steel Institute.
"We are changing the entire world steel map," said ISG chairman Wilbur Ross. The formation of Mittal Steel would create the same sort of change in the global steel industry that the creation of ISG, which includes assets of companies such as Bethlehem Steel and Weirton Steel, had done in the US, Mr Ross said.
Mr Mittal was equally upbeat. "We are creating a new global powerhouse in the steel sector," he said. Mittal Steel will employ some 165,000 people in 14 countries in North America, Asia, Europe and Africa.
Mr. Mittal also is the owner of the ISPAT SIDEX Steel company in Galati, Romania and of TEPRO company in Iasi, Romania.
Posted by Mihai Botea : 10/26/2004 01:03:00 PM
Monday, October 25, 2004
According to ARIS, the total foreign investments in romania for the first 8 months was 1,43 billion EURO. Until the end of the year the total figure is expected to exceed 2 billion EURO (25% higher than previous year).
Directforeign investments for the first 8 months total 1,39 billion EURO, 43% higher than in previous year.
The main areas of interest are the auto industry, the furniture industry, electronics & IT and the real estate market. Most of the investments presented above are greenfield investments and have benefited from tipical advantages offered to investors in Romania.
Posted by Mihai Botea : 10/25/2004 05:40:00 PM
Directforeign investments for the first 8 months total 1,39 billion EURO, 43% higher than in previous year.
The main areas of interest are the auto industry, the furniture industry, electronics & IT and the real estate market. Most of the investments presented above are greenfield investments and have benefited from tipical advantages offered to investors in Romania.
Posted by Mihai Botea : 10/25/2004 05:40:00 PM
Romania has one of the largest growth rates for the Internet users compared to other countries in Eastern and Central Europe.
The number of Internet users rose from 350.000 / week in 1998 to 1.450.000 / week in 2002.
Romanian Internet users specialy use services like e-mail (49%), chat (46%) and information search (37%). Internet is accessed from public places by 50% of Romanian internet users, while 25% use it from their office and 20% use it from home. Most Internet users are youngsters between 18 and 29 years old and adults between 30 and 39 years old.
Most powerful web networks are developed by:
Mirabilis Media (portal.ro, programetv.com, net-info.ro, masini.ro, culinar.ro, kiosk.ro, med-info.ro, interviuri.ro, reportaje.ro, analyser.ro, adserver.ro);
Imedia (eva.ro, toplinks.ro, funcards.ro, businessromania.com, emoka.ro, amore.ro, adlink.ro),
Netbridge Investments (trafic.ro, okazii.ro, aman2.ro, hit.ro, boom.ro) Club.ro (bestjobs.ro, eturism.ro, ecasa.ro, garaj.ro, noi2.ro, bazar.ro, bizclub.ro, rogenerator.ro, marketer.ro);
Vodanet (mymail.ro, mybid.ro, bloombiz.ro, visualart.ro, gamecraft.ro, adclick.ro)
Media Pro (Apropo.ro, prosport.ro, mediafax.ro, zf.ro).
To read more about this study (Romanian language only) please visit this page.
The study was released by Roland Berger Strategy Consultants.
Posted by Mihai Botea : 10/25/2004 01:04:00 PM
The number of Internet users rose from 350.000 / week in 1998 to 1.450.000 / week in 2002.
Romanian Internet users specialy use services like e-mail (49%), chat (46%) and information search (37%). Internet is accessed from public places by 50% of Romanian internet users, while 25% use it from their office and 20% use it from home. Most Internet users are youngsters between 18 and 29 years old and adults between 30 and 39 years old.
Most powerful web networks are developed by:
Mirabilis Media (portal.ro, programetv.com, net-info.ro, masini.ro, culinar.ro, kiosk.ro, med-info.ro, interviuri.ro, reportaje.ro, analyser.ro, adserver.ro);
Imedia (eva.ro, toplinks.ro, funcards.ro, businessromania.com, emoka.ro, amore.ro, adlink.ro),
Netbridge Investments (trafic.ro, okazii.ro, aman2.ro, hit.ro, boom.ro) Club.ro (bestjobs.ro, eturism.ro, ecasa.ro, garaj.ro, noi2.ro, bazar.ro, bizclub.ro, rogenerator.ro, marketer.ro);
Vodanet (mymail.ro, mybid.ro, bloombiz.ro, visualart.ro, gamecraft.ro, adclick.ro)
Media Pro (Apropo.ro, prosport.ro, mediafax.ro, zf.ro).
To read more about this study (Romanian language only) please visit this page.
The study was released by Roland Berger Strategy Consultants.
Posted by Mihai Botea : 10/25/2004 01:04:00 PM
According to the latest data released by the central bank (BNR), Romania’s current account deficit rose 46.4 percent to EUR 2.1 billion over January - August against the same period last year, accounting for a worrying 6.6 percent of the GDP considering the 5.5 percent ceiling established with the IMF. Increasing concern is related to a recent S&P statement according to which a further deterioration of the Romania’s current account gap might result in a downgrade. The deterioration is mainly grounded on the increasing trade balance stemming from strong domestic consumption, which is to further increase to the end of the year considering the usual booming imports of household goods.
Posted by Mihai Botea : 10/25/2004 11:50:00 AM
Posted by Mihai Botea : 10/25/2004 11:50:00 AM
The Romanian government said it has given the country's former King Michael 30 million euros (38 million dollars) to compensate him for the seizure of his property by the former communist regime in 1948.
The government also returned to the ex-sovereign the small castle of Peles near Sinaia, 150 kilometers (90 miles) north of Bucharest.
But the former king's lawyer, Adrian Vasiliu, dismissed the amount. "The amount offered by the government and which includes the impressive and luxurious Peles castle, now a national museum, is symbolic," he said. "This compensation amounts to far less than the actual value of the property confiscated by the communists."
In 1999, the former king took legal action in a bid to recover his family's property.
A court later ruled that the 17th-century Savarsin castle, used as a residence by late dictator Nicolae Ceausescu, be restored to the ex-king.
On August 23, 1944 King Michael, aged 23, ordered the arrest of Romanian strongman and Adolf Hitler ally Marshal Ion Antonescu so his country could switch to the Allied camp.
He was subsequently forced to appoint a Communist-dominated government and in 1947 to abdicate and leave the country.
He returned to the country in 2002 and now lives in central Bucharest as a private citizen.
Posted by Iulia Stoicescu : 10/25/2004 10:25:00 AM
The government also returned to the ex-sovereign the small castle of Peles near Sinaia, 150 kilometers (90 miles) north of Bucharest.
But the former king's lawyer, Adrian Vasiliu, dismissed the amount. "The amount offered by the government and which includes the impressive and luxurious Peles castle, now a national museum, is symbolic," he said. "This compensation amounts to far less than the actual value of the property confiscated by the communists."
In 1999, the former king took legal action in a bid to recover his family's property.
A court later ruled that the 17th-century Savarsin castle, used as a residence by late dictator Nicolae Ceausescu, be restored to the ex-king.
On August 23, 1944 King Michael, aged 23, ordered the arrest of Romanian strongman and Adolf Hitler ally Marshal Ion Antonescu so his country could switch to the Allied camp.
He was subsequently forced to appoint a Communist-dominated government and in 1947 to abdicate and leave the country.
He returned to the country in 2002 and now lives in central Bucharest as a private citizen.
Posted by Iulia Stoicescu : 10/25/2004 10:25:00 AM
Sunday, October 24, 2004
BUCHAREST, Oct 22 (Reuters) –
Romania's centrist opposition alliance is closing the gap with the ruling leftist Social Democrat Party and its ally, the small centre-left Humanist Party ahead of elections, an opinion poll showed on Friday.
Romania's centrist opposition alliance is closing the gap with the ruling leftist Social Democrat Party and its ally, the small centre-left Humanist Party ahead of elections, an opinion poll showed on Friday.
An IRECSON survey of 4,000 people between Oct. 10-18 showed the ruling ex-communist PSD still topping voter preferences with 38.98 percent, followed closely by the centrist opposition alliance, 3.5 percentage points behind compared to five in a previous poll conducted by Gallup.
The survey was conducted nationwide and has a margin of error of 1.5 percent.
Romania, which aims to join the European Union in 2007, holds both presidential and parliamentary elections in November.
Following are the results of the four latest opinion polls:
PARTY POLL CONDUCTED BY
IRECSON GALLUP ISS INSOMAR 2000 POLLS
Oct 18 Oct 15 Oct 10 Oct 5 lower senate
PSD 38.98* 43* 43.62* 39* 37.61 37.09
PNL 35.41** 38** 35.99** 29** 6.89 7.48
PD - - - - 7.03 7.58
PRM 8.75 13 12.76 11 19.48 21.01
UDMR 4.27 4 4.47 5 6.80 6.90
PUR - - - - - -
Won't vote/
undecided 7.55 32 - 12 - -
-------------------------------------------------------------
PRESIDENT
Adrian
Nastase 37.39 - 43.53 49 -
Traian
Basescu 33.07 - 33.86 20 -
Corneliu
Vadim Tudor 9.67 - 13.16 23 33.17
NOTES:
* indicates joint result for the PSD-PUR alliance
** indicates joint result for the PNL-PD alliance
----
It seems that the diffrence between the PSD+PUR UNION and the Justice and TRUTH ALLIANCE is getting smaller...
It seems that the difference between the PSD+PUR UNION and the Justice and TRUTH ALLIANCE is getting smaller...
And I am not wondering if Basescu may win the second ballot against Nastase…I am wondering if he can really do it from the first one as he announced… ;-)
The race has therefore narrowed - prompting a more vituperative debate all round. Both camps have proposed live TV debates as well, with ever increasing lists of questions they would like to see the other side answer.
I can't wait for the debates...
And for the Romanians abroad in the diaspora:
Posted by Cristian C. Francu : 10/24/2004 10:48:00 PM
Romania is the world biggest exporter of beluga caviar.
The Associated Press
CONSTANTA, Romania (AP) - Romania will be the world's biggest exporter of beluga caviar after having taken steps to protect its sturgeon population, officials said Thursday.
Exports of beluga caviar are regulated through an international system of permits run by the Switzerland-based Convention on International Trade in Endangered Species of Wild Fauna and Flora.
This year, Romania will be the world's largest exporter of beluga caviar, with 3,410 (7,500 pounds) kilograms of caviar. The Balkan country is followed by Kazakhstan with 2,360 kilograms (5,190 pounds), according to figures released Thursday by the group, which has issued export quotas for September and October.
Export quotas for Romania were increased in 2004 after the country took measures to protect the white sturgeon population, including tough penalties for poaching. Last year, about 1,000 people were prosecuted for poaching fish, said Virgil Munteanu, governor of Romania's Danube Delta reservation.
Countries in the Caspian Sea region have agreed to reduce their exports by 50 percent this year to compensate for illegal harvests of sturgeon, John Sellar, an enforcement officer with the Convention, said by telephone from Switzerland.
He said the exporters also agreed at a recent conference in Bangkok, Thailand, to regulate exports more strictly. The 2004 quotas will have to be exported by the end of March 2005.
Illegal exports of beluga caviar, which is the black variety, are estimated to be worth tens of millions of dollars, with a kilogram of caviar costing about US$500 (euro400) per kilogram (2.2 pounds) wholesale, Sellar said.
On the Net:
Convention on International Trade in Endangered Species of Wild Fauna and Flora, http://www.cites.org/
Romanian sturgeons,
http://rosturgeons.danubedelta.org/index1E.htm
CONSTANTA, Romania (AP) - Romania will be the world's biggest exporter of beluga caviar after having taken steps to protect its sturgeon population, officials said Thursday.
Exports of beluga caviar are regulated through an international system of permits run by the Switzerland-based Convention on International Trade in Endangered Species of Wild Fauna and Flora.
This year, Romania will be the world's largest exporter of beluga caviar, with 3,410 (7,500 pounds) kilograms of caviar. The Balkan country is followed by Kazakhstan with 2,360 kilograms (5,190 pounds), according to figures released Thursday by the group, which has issued export quotas for September and October.
Export quotas for Romania were increased in 2004 after the country took measures to protect the white sturgeon population, including tough penalties for poaching. Last year, about 1,000 people were prosecuted for poaching fish, said Virgil Munteanu, governor of Romania's Danube Delta reservation.
Countries in the Caspian Sea region have agreed to reduce their exports by 50 percent this year to compensate for illegal harvests of sturgeon, John Sellar, an enforcement officer with the Convention, said by telephone from Switzerland.
He said the exporters also agreed at a recent conference in Bangkok, Thailand, to regulate exports more strictly. The 2004 quotas will have to be exported by the end of March 2005.
Illegal exports of beluga caviar, which is the black variety, are estimated to be worth tens of millions of dollars, with a kilogram of caviar costing about US$500 (euro400) per kilogram (2.2 pounds) wholesale, Sellar said.
On the Net:
Convention on International Trade in Endangered Species of Wild Fauna and Flora, http://www.cites.org/
Romanian sturgeons,
http://rosturgeons.danubedelta.org/index1E.htm
Posted by Cristian C. Francu : 10/24/2004 10:38:00 PM
Friday, October 22, 2004
Source: seeurope.net
2004-10-22 10:56:23
The sale of 51% in Petrom, Distrigaz Nord, Distrigaz Sud and two branches of Electrica will bring 2.25 billion euros to the Romanian economy by the end of the year, with the State directly receiving 958 million euros. It has taken Romania fourteen years to reach the peak of privatization, although Hungary and the Czech Republic, for example, had already managed this by 1995-1996. German company Ruhrgas, part of the world's largest utilities company E.ON, yesterday signed the 304 million-euro privatisation contract for a 51% stake in the natural gas distributor, Distrigaz Nord. The deal with Ruhrgas is the Romanian State's first real privatization in that it involves the sale to a private company of the majority share in a state-owned company. The Germans will pay 125 million euros for the direct acquisition of 30% in Distrigaz Nord and will also make a cash contribution of 179 million euros, which will increase their stake to 51%. The foreign investor will also take on net financial debts of 13 million euros According to officials from the Ministry of Economy and Trade, the transaction (the purchasing of the 30% stake and the capital increase) will be completed by the end of the year. Until that time, Ruhrgas representatives will be actively involved in all major strategic decisions of the company. The privatization contract for Distrigaz Nord SA Targu Mures was signed yesterday at Victoria Palace (the Government headquarters) by Dorin Mucea, head of the Office for State Participations and Industry Privatisation, with Burckhard Bergmann, chairman of the E.ON Ruhrgas Board, and Achim Saul, head of Ruhrgas Sales Division for Central and Eastern Europe. The Ruhrgas offer values the entire Distrigaz Nord stock at 416 million euros. The offer by the Germans is very similar to the proposition made by Gaz de France, which took over Distrigaz Sud for 311 million euros, paying 128 million euros for 30% of the shares. The price appears much higher since the value of the regulatory asset base released by the Natural Gas Regulation Authority is bigger in the case of Distrigaz Sud than in the case of the other gas distributor. However, Ruhrgas will take over a company that seems to be cleaner, whose net debts are seven times smaller than those of Distrigaz Sud, and which has more clients and a bigger network (17,000km). "As a future member of the E.ON group, Distrigaz Nord will benefit from our powerful position and from our expertise in this field. We are coming to Romania as a long-term investor and not only as a majority shareholder, but as a partner as well," said Burckhard Bergmann, an E.ON board member. In the final stage of the tender, Italian energy group Enel, which was said to have good chances to win either Distrigaz Nord or Distrigaz Sud (having bid for both), came in second in both cases.
Posted by Mircea B : 10/22/2004 09:14:00 PM
2004-10-22 10:56:23
The sale of 51% in Petrom, Distrigaz Nord, Distrigaz Sud and two branches of Electrica will bring 2.25 billion euros to the Romanian economy by the end of the year, with the State directly receiving 958 million euros. It has taken Romania fourteen years to reach the peak of privatization, although Hungary and the Czech Republic, for example, had already managed this by 1995-1996. German company Ruhrgas, part of the world's largest utilities company E.ON, yesterday signed the 304 million-euro privatisation contract for a 51% stake in the natural gas distributor, Distrigaz Nord. The deal with Ruhrgas is the Romanian State's first real privatization in that it involves the sale to a private company of the majority share in a state-owned company. The Germans will pay 125 million euros for the direct acquisition of 30% in Distrigaz Nord and will also make a cash contribution of 179 million euros, which will increase their stake to 51%. The foreign investor will also take on net financial debts of 13 million euros According to officials from the Ministry of Economy and Trade, the transaction (the purchasing of the 30% stake and the capital increase) will be completed by the end of the year. Until that time, Ruhrgas representatives will be actively involved in all major strategic decisions of the company. The privatization contract for Distrigaz Nord SA Targu Mures was signed yesterday at Victoria Palace (the Government headquarters) by Dorin Mucea, head of the Office for State Participations and Industry Privatisation, with Burckhard Bergmann, chairman of the E.ON Ruhrgas Board, and Achim Saul, head of Ruhrgas Sales Division for Central and Eastern Europe. The Ruhrgas offer values the entire Distrigaz Nord stock at 416 million euros. The offer by the Germans is very similar to the proposition made by Gaz de France, which took over Distrigaz Sud for 311 million euros, paying 128 million euros for 30% of the shares. The price appears much higher since the value of the regulatory asset base released by the Natural Gas Regulation Authority is bigger in the case of Distrigaz Sud than in the case of the other gas distributor. However, Ruhrgas will take over a company that seems to be cleaner, whose net debts are seven times smaller than those of Distrigaz Sud, and which has more clients and a bigger network (17,000km). "As a future member of the E.ON group, Distrigaz Nord will benefit from our powerful position and from our expertise in this field. We are coming to Romania as a long-term investor and not only as a majority shareholder, but as a partner as well," said Burckhard Bergmann, an E.ON board member. In the final stage of the tender, Italian energy group Enel, which was said to have good chances to win either Distrigaz Nord or Distrigaz Sud (having bid for both), came in second in both cases.
Posted by Mircea B : 10/22/2004 09:14:00 PM
German company Ruhrgas, part of the world's largest utilities company E.ON, yesterday signed the 304 million-euro privatisation contract for a 51% stake in the natural gas distributor, Distrigaz Nord.
The deal with Ruhrgas is the Romanian State's first real privatisation in that it involves the sale to a private company of the majority share in a state-owned company.
The overall financial volume of the engagement amounts to EUR 303 million. Through the privatisation, E.ON Ruhrgas is acquiring, in a first step, a 30 % share in Distrigaz Nord for the amount of EUR 125 million. This share will be increased to 51 % through a definite capital increase by EUR 178 million. The remaining 49 % of the share capital will remain in public ownership. The transaction is subject to the approval of the Romanian cartel authorities.
According to officials from the Ministry of Economy and Trade, the transaction (the purchasing of the 30% stake and the capital increase) will be completed by the end of the year.
The Ruhrgas offer values the entire Distrigaz Nord stock at 416 million euros. The offer by the Germans is very similar to the proposition made by Gaz de France, which took over Distrigaz Sud for 311 million euros, paying 128 million euros for 30% of the shares.
The price appears much higher since the value of the regulatory asset base released by the Natural Gas Regulation Authority is bigger in the case of Distrigaz Sud than in the case of the other gas distributor.
The regional gas company Distrigaz Nord, so far 100 % publicly owned, is responsible for natural gas trade and distribution in the northern part of Romania.
It supplies approx. 4.6 billion m3 of natural gas annually to approx. one million customers and operates an approx. 17,000 km gas pipeline grid.
The Romanian gas market is the strongest sales market in central and eastern Europe. With a share of 37 %, natural gas is the most important primary fuel in the country.
Approx. 16 billion m3 of natural gas were consumed in 2003. Demand is expected to increase continuously over the next few years. Romania currently covers approx. 70 % of its natural gas demand by gas from indigenous sources, which are, however, declining. Approx. 30 % of the natural gas is imported from Russia.
Besides Distrigaz Nord, E.ON Ruhrgas has already acquired shares in the Romanian power and heat generator CCNE and in the Romanian gas supplier S.C. Congaz S.A.
Posted by Iulia Stoicescu : 10/22/2004 11:56:00 AM
The deal with Ruhrgas is the Romanian State's first real privatisation in that it involves the sale to a private company of the majority share in a state-owned company.
The overall financial volume of the engagement amounts to EUR 303 million. Through the privatisation, E.ON Ruhrgas is acquiring, in a first step, a 30 % share in Distrigaz Nord for the amount of EUR 125 million. This share will be increased to 51 % through a definite capital increase by EUR 178 million. The remaining 49 % of the share capital will remain in public ownership. The transaction is subject to the approval of the Romanian cartel authorities.
According to officials from the Ministry of Economy and Trade, the transaction (the purchasing of the 30% stake and the capital increase) will be completed by the end of the year.
The Ruhrgas offer values the entire Distrigaz Nord stock at 416 million euros. The offer by the Germans is very similar to the proposition made by Gaz de France, which took over Distrigaz Sud for 311 million euros, paying 128 million euros for 30% of the shares.
The price appears much higher since the value of the regulatory asset base released by the Natural Gas Regulation Authority is bigger in the case of Distrigaz Sud than in the case of the other gas distributor.
The regional gas company Distrigaz Nord, so far 100 % publicly owned, is responsible for natural gas trade and distribution in the northern part of Romania.
It supplies approx. 4.6 billion m3 of natural gas annually to approx. one million customers and operates an approx. 17,000 km gas pipeline grid.
The Romanian gas market is the strongest sales market in central and eastern Europe. With a share of 37 %, natural gas is the most important primary fuel in the country.
Approx. 16 billion m3 of natural gas were consumed in 2003. Demand is expected to increase continuously over the next few years. Romania currently covers approx. 70 % of its natural gas demand by gas from indigenous sources, which are, however, declining. Approx. 30 % of the natural gas is imported from Russia.
Besides Distrigaz Nord, E.ON Ruhrgas has already acquired shares in the Romanian power and heat generator CCNE and in the Romanian gas supplier S.C. Congaz S.A.
Posted by Iulia Stoicescu : 10/22/2004 11:56:00 AM
Thursday, October 21, 2004
BUCHAREST, Oct 20 (Reuters) - Romania's main opposition centrist alliance has chosen businessman Calin Tariceanu as its choice for prime minister if it wins a general election on Nov. 28, a senior official in the alliance said on Wednesday.
Analysts and investors were keenly waiting to find out who the Truth and Justice Alliance would choose to face popular Foreign Minister Mircea Geoana, who is the choice of the ruling leftist Social Democrats.
Romania, which aims to join the European Union in 2007, holds general and presidential elections one month before it hopes to wrap up European Union membership talks.
"The official announcement ... will be made later in the day. Calin Tariceanu is the one to be nominated," the source in the opposition Liberal party told Reuters.
The Liberal Party is one of two parties in the alliance. The other is the Democrat Party. The alliance is running behind the Social Democrats in opinion polls.
Tariceanu, 52, for many years ran the local unit of French car maker Citroen. He was recently appointed to lead the Liberals after former presidential candidate Theodor Stolojan withdrew for health reasons.
Tariceanu, who is also a member of parliament, handed over his responsibilities at Citroen last year when a law to halt conflicts of interest came into force.
Posted by Mihai : 10/21/2004 12:59:00 PM
Analysts and investors were keenly waiting to find out who the Truth and Justice Alliance would choose to face popular Foreign Minister Mircea Geoana, who is the choice of the ruling leftist Social Democrats.
Romania, which aims to join the European Union in 2007, holds general and presidential elections one month before it hopes to wrap up European Union membership talks.
"The official announcement ... will be made later in the day. Calin Tariceanu is the one to be nominated," the source in the opposition Liberal party told Reuters.
The Liberal Party is one of two parties in the alliance. The other is the Democrat Party. The alliance is running behind the Social Democrats in opinion polls.
Tariceanu, 52, for many years ran the local unit of French car maker Citroen. He was recently appointed to lead the Liberals after former presidential candidate Theodor Stolojan withdrew for health reasons.
Tariceanu, who is also a member of parliament, handed over his responsibilities at Citroen last year when a law to halt conflicts of interest came into force.
Posted by Mihai : 10/21/2004 12:59:00 PM
Transparency International has released this year's edition of its Corruption Perceptions Index (http://www.transparency.org/cpi/2004/dnld/media_pack_en.pdf ) and Global Coruption Report (http://www.globalcorruptionreport.org/download.htm )
While Finland, New Zealand and Denmark appear to be the least corrupt countries in the world, Romania ranks 89th, below Iran, The Dominican Republic, Senegal, Mongolia, Namibia, Cuba, Ghana, Sri Lanka, Syria, Mali, Morocco and so on and so forth.
Haiti appears to be the most corrupt country in the world.
Posted by Iulia Stoicescu : 10/21/2004 11:07:00 AM
While Finland, New Zealand and Denmark appear to be the least corrupt countries in the world, Romania ranks 89th, below Iran, The Dominican Republic, Senegal, Mongolia, Namibia, Cuba, Ghana, Sri Lanka, Syria, Mali, Morocco and so on and so forth.
Haiti appears to be the most corrupt country in the world.
Posted by Iulia Stoicescu : 10/21/2004 11:07:00 AM
Wednesday, October 20, 2004
source: Ziarul Financiar.
The total capitalisation of the Bucharest Stock Exchange has increased some 500 million euros since the beginning of the year as a result of the surge in value of some of the biggest companies listed on the market. The total value of the companies trading on the Stock Exchange reached 5.5 billion euros, following the new all-time highs recorded in the BET and BET-C indexes, which mirror the evolution of listed stocks.
Brokers say this is due to new money coming from foreign investors that significantly raised demand for shares in recent weeks. After six consecutive days of general growth, most brokers admit they had not expected this phenomenon and that the market will not be able to keep up with the pace for long.
The BET index, which follows the progress of the market's top ten companies, climbed 10% since early this month, putting Stock Exchange growth this year at almost 65%. This is also the average size of profits made by foreigners that invested dollars or euros, since the exchange rate kept at a very stable level.
"It was only natural for the market to grow because the dividend period is coming and we've had our share of market decreases. We were expecting Banca Transilvania to go up, though we didn't dream of seeing it surge 12% in one week," said Răzvan Paşol, president of Intercapital Invest.
The Stock exchange thus resumed its bullish trend in the past three weeks, after an interval in August and September that brokers put down to lower interest by foreign investors.
The first signs of comeback were evident earlier this month, when the European Commission released its annual country report in which it granted Romania functioning market economy status.
"Each year, it has been foreigners that have pushed the market up. This is visible in the statistics on foreign investment, which show the market stopped growing when money from abroad stopped coming in. It is a good sign, however, that in August and September when no more money came from abroad, Romanian investors were able to support the market and there were no slumps in quotations," said Rareş Nilaş, head of BT Securities, the brokerage firm owned by Banca Transilvania.
Brokers also identify the banking rate cuts for ROL, which made investment in stocks more interesting, as another factor in the market's recent growth. "I believe that current trading prices also include investor estimates of future rate drops," says Daniel Pocorea, a trader with BRD Securities. In recent years, rate cuts have always coincided with market surges, albeit with some delay.
The growth of the Bucharest Stock Exchange matches the latest macroeconomic data and is very encouraging to investors. "Whichever way we look at it, the macroeconomic situation is favourable, whether we are talking about the country report, rate cuts or economic growth. I believe there is still room for growth, but the pace of growth in the past few days is indeed reason for concern, and which, should it continue, may even pose a threat to market growth," Pocorea concluded.
Posted by Mihai Botea : 10/20/2004 05:59:00 PM
The total capitalisation of the Bucharest Stock Exchange has increased some 500 million euros since the beginning of the year as a result of the surge in value of some of the biggest companies listed on the market. The total value of the companies trading on the Stock Exchange reached 5.5 billion euros, following the new all-time highs recorded in the BET and BET-C indexes, which mirror the evolution of listed stocks.
Brokers say this is due to new money coming from foreign investors that significantly raised demand for shares in recent weeks. After six consecutive days of general growth, most brokers admit they had not expected this phenomenon and that the market will not be able to keep up with the pace for long.
The BET index, which follows the progress of the market's top ten companies, climbed 10% since early this month, putting Stock Exchange growth this year at almost 65%. This is also the average size of profits made by foreigners that invested dollars or euros, since the exchange rate kept at a very stable level.
"It was only natural for the market to grow because the dividend period is coming and we've had our share of market decreases. We were expecting Banca Transilvania to go up, though we didn't dream of seeing it surge 12% in one week," said Răzvan Paşol, president of Intercapital Invest.
The Stock exchange thus resumed its bullish trend in the past three weeks, after an interval in August and September that brokers put down to lower interest by foreign investors.
The first signs of comeback were evident earlier this month, when the European Commission released its annual country report in which it granted Romania functioning market economy status.
"Each year, it has been foreigners that have pushed the market up. This is visible in the statistics on foreign investment, which show the market stopped growing when money from abroad stopped coming in. It is a good sign, however, that in August and September when no more money came from abroad, Romanian investors were able to support the market and there were no slumps in quotations," said Rareş Nilaş, head of BT Securities, the brokerage firm owned by Banca Transilvania.
Brokers also identify the banking rate cuts for ROL, which made investment in stocks more interesting, as another factor in the market's recent growth. "I believe that current trading prices also include investor estimates of future rate drops," says Daniel Pocorea, a trader with BRD Securities. In recent years, rate cuts have always coincided with market surges, albeit with some delay.
The growth of the Bucharest Stock Exchange matches the latest macroeconomic data and is very encouraging to investors. "Whichever way we look at it, the macroeconomic situation is favourable, whether we are talking about the country report, rate cuts or economic growth. I believe there is still room for growth, but the pace of growth in the past few days is indeed reason for concern, and which, should it continue, may even pose a threat to market growth," Pocorea concluded.
Posted by Mihai Botea : 10/20/2004 05:59:00 PM
Tuesday, October 19, 2004
The Distrigaz, Petrom and Electrica privatisation are three very important steps in the Romanian privatisation process, meant to eliminate the state-owned monopols in some vertical industries in Romania.
Below is a detailed presentation of the Ditrigaz privatisation, courtesy of REUTERS.
---------------------------------------------
BUCHAREST, Oct 18 (Reuters) - France's Gaz de France (GDF) will pay a total of 311 million euros to get a majority stake in Romania's gas distributor Distrigaz Sud, the Romanian Economy Ministry said on Monday.
Privatisation of Romania's two main gas firms Distrigaz Sud and Distrigaz
Nord is a key move under accords with international lenders and a major step in
reforming the debt-ridden energy sector.
"Gaz de France will pay 128 million euros for a 30 percent stake (in
Distrigaz) and another 183 million euros to boost its participation to 51 percent,"
the ministry said in a statement.
Under the deal, to be signed during the visit of French Prime Minister
Jean-Pierre Raffarin to Bucharest, Gaz de France is committed to use the funds it
injects in Distrigaz for investments, upgrading and environment protection.
"That means Gaz de France has evaluated Distrigaz Sud at 426 million euros,
taking into account that on April 30, 2004, it (Distrigaz Sud) had a net
financial debt of 95 million euros," the statement said.
The transaction will be finalised by the end of the year, it added.
Romania in August chose GDF and Germany's Ruhrgas as winners in the sale of
its two main distributors.
Distrigaz Sud had a 462 million euros sales in 2003, when its net profit,
computed in line with International Accounting Standards totalled 21 million
euros.
Posted by Mihai Botea : 10/19/2004 05:55:00 PM
Below is a detailed presentation of the Ditrigaz privatisation, courtesy of REUTERS.
---------------------------------------------
BUCHAREST, Oct 18 (Reuters) - France's Gaz de France (GDF) will pay a total of 311 million euros to get a majority stake in Romania's gas distributor Distrigaz Sud, the Romanian Economy Ministry said on Monday.
Privatisation of Romania's two main gas firms Distrigaz Sud and Distrigaz
Nord is a key move under accords with international lenders and a major step in
reforming the debt-ridden energy sector.
"Gaz de France will pay 128 million euros for a 30 percent stake (in
Distrigaz) and another 183 million euros to boost its participation to 51 percent,"
the ministry said in a statement.
Under the deal, to be signed during the visit of French Prime Minister
Jean-Pierre Raffarin to Bucharest, Gaz de France is committed to use the funds it
injects in Distrigaz for investments, upgrading and environment protection.
"That means Gaz de France has evaluated Distrigaz Sud at 426 million euros,
taking into account that on April 30, 2004, it (Distrigaz Sud) had a net
financial debt of 95 million euros," the statement said.
The transaction will be finalised by the end of the year, it added.
Romania in August chose GDF and Germany's Ruhrgas as winners in the sale of
its two main distributors.
Distrigaz Sud had a 462 million euros sales in 2003, when its net profit,
computed in line with International Accounting Standards totalled 21 million
euros.
Posted by Mihai Botea : 10/19/2004 05:55:00 PM
France and Romania agreed on Monday to set up an international committee to help French couples caught out in the middle of adoption proceedings by a Romanian ban on foreign adoptions.
EU candidate Romania approved a law in June under which children can only be adopted abroad by their grandparents, cementing a moratorium on foreign adoptions imposed in 2000 after fears the babies were at risk of abuse.
The law meant that dozens of French couples, who had started adoption procedures before the moratorium, were caught out.
"I proposed to set up an international committee, under the incontestable authority of a credible organisation, which could examine different cases," French Prime Minister Jean-Pierre Raffarin said during a visit to Romania.
The EU, which Romania hopes to join in 2007, warned the Balkan country against easing the ban on adoptions when Romanian officials said in July they were considering allowing parliament to approve the adoption abroad of very ill babies.
Around 130 French couples are estimated to have been caught in the middle of adoption proceedings by the ban, with 35 of these having already met their prospective Romanian child.
Posted by Iulia Stoicescu : 10/19/2004 04:36:00 PM
EU candidate Romania approved a law in June under which children can only be adopted abroad by their grandparents, cementing a moratorium on foreign adoptions imposed in 2000 after fears the babies were at risk of abuse.
The law meant that dozens of French couples, who had started adoption procedures before the moratorium, were caught out.
"I proposed to set up an international committee, under the incontestable authority of a credible organisation, which could examine different cases," French Prime Minister Jean-Pierre Raffarin said during a visit to Romania.
The EU, which Romania hopes to join in 2007, warned the Balkan country against easing the ban on adoptions when Romanian officials said in July they were considering allowing parliament to approve the adoption abroad of very ill babies.
Around 130 French couples are estimated to have been caught in the middle of adoption proceedings by the ban, with 35 of these having already met their prospective Romanian child.
Posted by Iulia Stoicescu : 10/19/2004 04:36:00 PM
Romanian Economy Ministry officials said that the government is determined to keep the deadline, which expired Monday, at 12:00 GMT.
Posted by Iulia Stoicescu : 10/19/2004 04:10:00 PM
The companies qualified in the final stage in the privatization of regional power suppliers Electrica Oltenia SA and Electrica Moldova SA are:
- Spain's Union Fenosa SA (UNF.MC),
- Germany's E.On AG and
- CEZ AS (BAACEZ.PR) of the Czech Republic
So far, only CEZ has indicated it is willing to make a final bid.
CEZ wants to bid for both companies and is ready to invest up to EUR1 billion in Romania into various energy projects, Vladimir Schmalz, the head of CEZ mergers and acquisition department, was quoted as saying by daily paper Ziarul Financiar earlier this month.
The two companies supply electricity to the southwestern and northeastern parts of the country respectively.
Posted by Iulia Stoicescu : 10/19/2004 04:10:00 PM
On Monday when the French Prime Minister Jean-Pierre Raffarin visit Romania, the French construction group Vinci SA Monday it has signed a contract, to finance, design, build and operate a new highway in Romania, without any tender.
The 36 km highway between Comarnic and Predeal, located in a mountainous area popular with tourists, is expected to cost EUR 480 million to build.
The contract to build and manage the road will run for 30 years, divided into five years of initial studies and construction, and 25 years of operation.
Other financial details are expected to be released later, Vinci said.
Posted by Iulia Stoicescu : 10/19/2004 03:47:00 PM
The 36 km highway between Comarnic and Predeal, located in a mountainous area popular with tourists, is expected to cost EUR 480 million to build.
The contract to build and manage the road will run for 30 years, divided into five years of initial studies and construction, and 25 years of operation.
Other financial details are expected to be released later, Vinci said.
Posted by Iulia Stoicescu : 10/19/2004 03:47:00 PM
Monday, October 18, 2004
source: REUTERS
BUCHAREST, Oct 18 (Reuters) - U.S. company AES has said it needs more
time to draft a competitive final offer in the sale of Romanian power firms
Electrica Oltenia SA and Electrica Moldova SA, newspaper Adevarul reported on
Monday.
The privatisation of electricity distributors is a key element in the
restructuring of the Balkan state's ailing power industry, as demanded by
international lenders and by the European Union, which Romania hopes to join in 2007.
"AES had no intention to withdraw from the race. But we need time to submit a
competitive offer," AES Vice President Joseph Brandt was quoted as saying. He
said AES aims to lodge the bid by Nov. 1.
In early October the Economy Ministry extended the bidding deadline for
Electrica by two weeks to Oct. 18 following requests by some of the prospective
bidders, and said that Greece's Public Power Corporation and AES had
withdrawn from the race.
The five qualified prospective bidders are Greece's Public Power Corporation,
Czech firm CEZ, Germany's E.ON , Spain's Union Fenosa
International and AES.
Romania launched the sale of Electrica Moldova and Electrica Oltenia in
April. Electrica Moldova has 1.31 million customers and Electrica Oltenia 1.36
million.
The ministry is offering 24.62 percent in each distributor to a strategic
investor, which must raise its stake to 51 percent through a share capital
increase.
Posted by Mihai Botea : 10/18/2004 10:49:00 PM
BUCHAREST, Oct 18 (Reuters) - U.S. company AES
time to draft a competitive final offer in the sale of Romanian power firms
Electrica Oltenia SA and Electrica Moldova SA, newspaper Adevarul reported on
Monday.
The privatisation of electricity distributors is a key element in the
restructuring of the Balkan state's ailing power industry, as demanded by
international lenders and by the European Union, which Romania hopes to join in 2007.
"AES had no intention to withdraw from the race. But we need time to submit a
competitive offer," AES Vice President Joseph Brandt was quoted as saying. He
said AES aims to lodge the bid by Nov. 1.
In early October the Economy Ministry extended the bidding deadline for
Electrica by two weeks to Oct. 18 following requests by some of the prospective
bidders, and said that Greece's Public Power Corporation
withdrawn from the race.
The five qualified prospective bidders are Greece's Public Power Corporation,
Czech firm CEZ
International
Romania launched the sale of Electrica Moldova and Electrica Oltenia in
April. Electrica Moldova has 1.31 million customers and Electrica Oltenia 1.36
million.
The ministry is offering 24.62 percent in each distributor to a strategic
investor, which must raise its stake to 51 percent through a share capital
increase.
Posted by Mihai Botea : 10/18/2004 10:49:00 PM
About one week ago I meant to write a post as I was very confused by how the prices for various products in Romania can go up so fast due to petroleum price increase. Basicallz, the petroleum price increased by 10%, while the price for meat and other day-to-day products increased bz more than 15%. As I imagine the transport has a little impact in the general price for meat, for example, it is hard for me to understand this argument.
But I hope the article bellow, courtesy of Ziarul Financiar, will put more light into this problem.
To be continued in a following issue....
----------------------------------------
The skyrocketing petroleum price is raising questions as to whether the inflation curbing pace planned will be possible to attain in 2005, right at a time when Romania is about to push the December to December rate below 10%, after 14 years of failures in this regard.
The Government has recently adjusted the inflationary forecast for next year upwards from 6% to 7%. The economic memorandum agreed upon with the IMF at the end of September, included a 6% inflationary target for late December 2005, with quarterly decline targets estimated at 8.1%, 8%, 6.5% and 6%. What is the official explanation for the change of forecast?
"We have a prudent 2005 inflationary target because there are potential growth risks, one of which is the international petroleum price if it maintains high," stated Finance Minister Mihai Tanasescu yesterday.
Under the circumstances, the State will also find itself deprived of its "reference fuel price" lever next year, which it used to pull in the past but ceased to work now that the main company on the market, Petrom was privatised.
Even if no significant price changes are made around the time of elections, there is no way they will be possible to avoid early in 2005, given that the new shareholder, OMV, cannot afford to operate at a loss.
Contrary to the initial expectations, the rise in the petroleum price turns out to be a lasting phenomenon, whose shocks will not be possible to dampen in spite of Petrom's domestic production of petroleum. Furthermore, a fast-growing economy like that of Romania will keep increasing consumption.
None of the major producers sees any significant price cuts being operated, as the crisis is made worse by the concurrent political instability in Iraq, Nigeria and Venezuela.
How can this effect be alleviated, which has already been delayed for as long as possible by not operating significant increases of Petrom's' prices?
At first, a temporary excise cut may seem to be the solution, but such an issue cannot be raised before Brussels, which expects to see excises rally to the levels in the EU on schedule.
If a new period of increased inflationary pressures looms ahead, how will NBR be able to continue reducing the benchmark interest?
At the same time, how can the expectations of the market about the inflationary trend be kept in check, considering it already sees prices increasing in a chain reaction as imminent?
The difficulty of proceeding with the disinflation once the 10% threshold was about to be reached was anticipated. The unexpected skyrocketing of the petroleum price, however, might turn out hard to overcome, particularly because it overlaps an inflation with a major structural component that is hard to tame as it is.
Inflationary rises were registered in countries like Hungary and Poland in those times when they were moving from the two-digit to one-digit inflationary rates. The Hungarian inflation therefore increased to 11.2% after having dropped to 10.3%. Poland's similarly resumed growth to 9.8% from 8.6%.
Posted by Mihai Botea : 10/18/2004 10:41:00 PM
But I hope the article bellow, courtesy of Ziarul Financiar, will put more light into this problem.
To be continued in a following issue....
----------------------------------------
The skyrocketing petroleum price is raising questions as to whether the inflation curbing pace planned will be possible to attain in 2005, right at a time when Romania is about to push the December to December rate below 10%, after 14 years of failures in this regard.
The Government has recently adjusted the inflationary forecast for next year upwards from 6% to 7%. The economic memorandum agreed upon with the IMF at the end of September, included a 6% inflationary target for late December 2005, with quarterly decline targets estimated at 8.1%, 8%, 6.5% and 6%. What is the official explanation for the change of forecast?
"We have a prudent 2005 inflationary target because there are potential growth risks, one of which is the international petroleum price if it maintains high," stated Finance Minister Mihai Tanasescu yesterday.
Under the circumstances, the State will also find itself deprived of its "reference fuel price" lever next year, which it used to pull in the past but ceased to work now that the main company on the market, Petrom was privatised.
Even if no significant price changes are made around the time of elections, there is no way they will be possible to avoid early in 2005, given that the new shareholder, OMV, cannot afford to operate at a loss.
Contrary to the initial expectations, the rise in the petroleum price turns out to be a lasting phenomenon, whose shocks will not be possible to dampen in spite of Petrom's domestic production of petroleum. Furthermore, a fast-growing economy like that of Romania will keep increasing consumption.
None of the major producers sees any significant price cuts being operated, as the crisis is made worse by the concurrent political instability in Iraq, Nigeria and Venezuela.
How can this effect be alleviated, which has already been delayed for as long as possible by not operating significant increases of Petrom's' prices?
At first, a temporary excise cut may seem to be the solution, but such an issue cannot be raised before Brussels, which expects to see excises rally to the levels in the EU on schedule.
If a new period of increased inflationary pressures looms ahead, how will NBR be able to continue reducing the benchmark interest?
At the same time, how can the expectations of the market about the inflationary trend be kept in check, considering it already sees prices increasing in a chain reaction as imminent?
The difficulty of proceeding with the disinflation once the 10% threshold was about to be reached was anticipated. The unexpected skyrocketing of the petroleum price, however, might turn out hard to overcome, particularly because it overlaps an inflation with a major structural component that is hard to tame as it is.
Inflationary rises were registered in countries like Hungary and Poland in those times when they were moving from the two-digit to one-digit inflationary rates. The Hungarian inflation therefore increased to 11.2% after having dropped to 10.3%. Poland's similarly resumed growth to 9.8% from 8.6%.
Posted by Mihai Botea : 10/18/2004 10:41:00 PM