Issue no. 44 (Period: 12 –19 April, 2013)
Economic News
JP Morgan ups 2013 economic increase
forecast for Romania
JP Morgan improved its forecast on economic
increase for Romania
this
year
from
a
previous 1.5 percent, to
1.9 percent, after the
2012 GDP was revised
by Romania’s Statistics
Institute.
JP Morgan expects agricultural to contribute
0.6 percentage points to the increase. For
2014, the bank kept its 2.3 percent economic
growth estimation for Romania, and on the
long term, Romania has a potential to achieve
a 4 percent economic increase. JP Morgan’s
forecast mentions the problematic absorption
of European funds, as it can cause damage to
economic increase by losing large amounts of
money.
So far, the most optimistic economic increase
prognosis came from UBS, with a 2.8 percent
increase
forecast
for
2013.
Internal
estimations however point to an increase
ranging from 0.5 to 1.6 percent for this year,
with the more optimistic estimation coming
from Romanian authorities.
source: Romania – insider.com
Greece’s Piraeus confirms sale of ATE
bank Romania for EUR10.3M
Greece’s Piraeus Bank has sold its 93.27%
stake in ATE Bank Romania to local
businessman Dorinel Umbrarescu for EUR10.3
million, the Greek lender said in a statement.
source: zfenglish.com
IMF outlook: 1.6% growth in Romania in
2013, in-line with govt prediction,
globally road to recovery still bumpy
According
to
the
International Monetary
Fund’s (IMF) new World
Economic Outlook for
2013.
Romania,
like
other
emerging economies and some regional EU
Member States, continues to show stronger
growth than the neighboring eurozone, but,
as ever, there are dangers to economic
increase. For Romania, the IMF predicts real
GDP growth of 1.6 percent this year and 2
percent in 2014. The estimate is the same as
the Romanian government’s 2013 prediction.
Locally, estimates for GDP increase this year
have ranged from as low as 0.5 percent up to
as high as 2.8 percent, however most
forecasts fall in the 1 – 2 percent range.
Growth last year in Romania was of 0.3
percent according to the IMF. Romania lies
below the IMF’s emerging Europe averages,
which are for 2.2 percent growth in 2013 and
2.8 percent in 2014. Looking further ahead,
the IMF predicts a 3.5 percent GDP growth
rate in Romania by 2018.
source: Romania-insider.com
Fitch Affirms Romania At BBB-, with
stable outlook
Fitch Ratings Thursday affirmed Romania’s
long-term foreign currency default rating at
BBB-, with stable outlook, as a poor growth
outlook and structural shortcomings hindered
a potential upgrade of the sovereign ratings.
source: zfenglish.com
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Real Estate Market News
Papalekas
construct
buys
projects
from
Lufin
Local investor in green energy takes over
French supermarket chain Interex in
Romania
In a deal worth €5m,
the
Romanian
businessman
Ioannis
Papalekas bought three
plots
and
two
residential
projects
from Lufin Construct, which filed for
insolvency in January 2012.
Romanian businessman
Sorin Bonciu, active in
the real estate and
renewable
energy
sectors, has bought the
French supermarket
chain Interex in Romania, via two companies.
Papalekas acquired a 3,000 sqm plot near
Bucharest’s Herastrau Park, one of the most
expensive residential areas in the capital.
Before the crisis hit, plots in the area were
valued at between €3,000 – €4,000/sqm. The
deal includes a plot on Theodor Pallady
Avenue and another in Voluntari, a Bucharest
suburb. Papalekas also picked up two
apartment projects on Fabrica de Glucoza
street.
“Bomax Group took over, with the transaction
value
confidential,
the supermarket
chain Interex, owned by the French retailer
with a turnover of EUR 40 million. The
intention is to rent or sell them to a food or a
Do-It-Yourself retailer,” said Laura Hantari,
Bomax Group representative, quoted by local
newspaper Ziarul Financiar.
source: Romania-insider.com
source: business-review.ro
EUR6M
Banks foreclose on 2,000 homes monthly
Romanian businessman Bogdan Pitigoi is
developing a 10,000-square meter logistic
park in Iasi county and the investment is
worth 26.3 million lei (some EUR6 million).
Banks have ended up foreclosing on 2,000
homes per month as they seek to recoup
money from bad payers, according to ZF
calculations based on the difference between
the rise in the number of loans and the actual
sales reported by banks.
Romanian businessman
Logistic park in Iasi
source: zfenglish.com
builds
source: zfenglish.com
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Renewable Energy News
Enel to invest EUR80M in Solar Power
Projects after investing EUR500M in wind
farms
Enel
Green
Power
(EGP), the renewable
energy
division
of
Italian utilities group
Enel, intends to enter
the
Romanian
solar
energy sector and develop farms with a total
capacity of 55 MW between 2013 and 2017
after in the past few years it has invested
over EUR500 million in wind power projects.
source: zfenglish.com
Romania to strike off co-generation tax
from electricity bills in move to cut
renewable energy incentives
The co-generation tax,
which
is
currently
included
on
all
electricity
bills
in
Romania, will be taken
out, but it is yet unclear
whether it will be paid via another way, or if it
will be canceled completely. The Romanian
Prime Minister announced that the tax, which
is meant to support renewable energy in
Romania, will be taken out the electricity bill.
The co-generation tax was introduced in 2011
and amounts to RON 0.0185/kWh, plus VAT.
For every 100 kWh used, a co-generation tax
of RON 2.29 – or EUR 0.5 is due.
The decision is part of a series of measures
aimed at decreasing support for the
renewable energy industry. A first step was a
cut in the number of green certificates given
as an incentive to renewable energy
producers. The country’s energy authority
ANRE
believes
investors
are
being
overcompensated in Romania by the green
certificates scheme for renewable energy
projects.
source: Romania-insider.com
Romanian Power Market Operator (OPCOM)
An average of 28.23 €/MWh has been recorded on Day Ahead Market prices during the period 12/4
– 19/4/2013, a decrease of 5.98€/MWh comparing to the week 5/4 - 12/4/2013 (34.21 €/MWh).
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Corporate News
IBM
wins
EUR
16
mln
server
maintenance contract with Romania’s
Tax Administration
Local media: Daimler wants to open
factory in Romania
IBM Romania recently
landed a EUR 16.1
million contract with
the
Romanian
tax
Administration ANAF for
maintenance
and
technical assistance for ANAF”s servers across
the country. The contract is funded by the
country’s budget and was awarded to the
lowest
price
offer.
According
to the
announcement published on the online public
bids website elicitatie.ro, only one bidder
submitted an offer.
German
car
maker
Daimler is reportedly
planning to open a
factory in Romania,
according
to
Ziarul
Financiar,
quoting
sources on the local market. The news comes
after Prime Minister Victor Ponta recently said
a prestigious German car maker was to open
a
factory
in
the
country,
with
a memorandum of
understanding
already
signed. The PM did not mention the name of
the company.
IBM
Romania
will
manage
the
over
1,000 servers which support ANAF’s tax
collection activity. The bid for this contract
was launched in October 2012, but was
suspended for a month after HP Romania
complained of restrictive conditions and of
conditions which, according to HP, were
openly in favor of IBM Romania. The bid was
re-started after the task books were modified,
a month later.
The investment would
be
somehow
unexpected, as in 2008, Daimler chose
Hungary over Romania as the site of a new
car factory. The factory in Romania however
would be dedicated to producing car parts,
according to Romanian media.
Romania is already home to two large
international car makers, Renault and Ford,
both of which entered the market by taking
over existing production facilities.
source: Romania-insider.com
Several investors interested in buying
Blue Air
Businessman
Dan
Adamescu,
Mirica
Dumitrescu - owner of Romanian airline
Medallion Air, which operates charter flights,
an investor from Doha, a representative of an
Italian-based airline and a law firm in Belgium
are interested in taking over low-cost airline
Blue Air, according to market sources.
source: Romania-insider.com
source: zfenglish.com
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