Romanian Daily

Steady 20% growth for Swedish bearings

IulianBulandra — 2006-07-28T06:14:00+00:00

Rulmenti Suedia, one of the main distributors of the SKF ball bearings brand and of industrial solutions in Romania, estimates a 20% growth pace for its business, comparable with growth seen in the last few years.

"We estimate the company's turnover will this year reach 2.8 million euros. In 2005, we posted turnover worth 2.4 million euros. Rises in turnover are not usually very spectacular in this business. It is a constantly growing business," says Eugen Kaptalan, the company's general manager. According to data provided by the Ministry of Finance, Rulmenti Suedia posted turnover worth over 1.8 million euros in 2004.

Eugen Kaptalan says the company will this year invest in constructing new headquarters and a new hall, scheduled for completion in December.

"The investment revolves around one million euros. We have taken out bank loans that we will pay from our profit, in order to cover the investment. Our company has grown on its own, originating from an idea imported from Hungary," Kaptalan added.

The Cluj-based company offers expert solutions to large industrial companies in Romania. Customers of Rulmenti Suedia include companies such as Kronospan, Tenaris, Silcotub, Carpatcement, Holcim, Somes Dej, Azomures, European Drinks, the Hunedoara-based Mittal Steel and Ductil Steel. The Swedish solutions are distributed by the Cluj-based company throughout Transylvania by local distributors they work with.

"The fact that we offer services and training assistance makes it essential to have our quarters as close to our clients as possible. If us or our distributors have to travel more than 150 kilometres to reach a client, we have not maximised profitability," explained Kaptalan.

"In addition to the new products and services that SKF is bringing to the Romanian market, we are thinking about starting collaborations with other companies and brands as well, broadening our range of services. We have two Dutch companies in mind, Dutchi and Bahco," Kaptalan added.

The main competitors of Rulmenti Suedia on the Romanian market are companies such as Fag, Ina and Timken. Rulmenti Suedia was established in 1998 and is owned by two Hungarian businessmen, Czegladi Sandor and Dohanjos Marika. The company presently has 16 employees.

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Private Pensions Funds Must Have Capital of €1.5 mln

IulianBulandra — 2006-07-27T10:28:00+00:00

The companies that manage private pension funds must have at the moment of submitting their authorization request a minimum share capital equivalent in lei to the amount of 1.5 million euros, calculated at the reference rate of the National Bank of Romania (BNR), stipulates a draft norm of the Private Pensions System Supervision (CSSPP), according to Rompres and ING Financial News. The sums destined for participation in the share capital of the pension company should come solely from their own sources and must not represent drawn credits or borrowed money, under irrespective what titles, from other individuals, authorized individuals, corporate entities or entities without legal personality.

The private pensions funds and their managers are not allowed in their publicity materials to make either estimations or prognosis as for future performances, or comparisons between different optional pensions funds or managers, CSSPP says in its draft norm published on the institution's site.

As well, the private pensions funds and the pensions companies that manage them are forbidden to use expressions such as "guaranteed results," "guaranteed gains" or any other wordings that can create the illusion that a gain has been granted, formulas of the kind "the biggest pensions funds managing company", "the best optional pensions scheme", "the best performing fund" and/ or other similar publicity, as well as the use of previous, present or potential participants' statements.

Almost three million Romanians, now insured in the public pensions system, are to contribute, starting next year, to the privately managed pensions funds, according to estimations made by CSSPP managing director Mircea Oancea.

The first funds in the privately managed pensions system are expected to be collected in July 2007 and it is estimated that 1.5 million people, up to 35 years old, will participate in this pillar II system (privately managed pensions) in the first year since being set up.

It is mandatory for them to adhere to a private fund, in addition to an approximately equal number of people, aged between 35 and 45, who will also opt to participate in a private fund, as well.

Likewise, some 500,000 participants are expected to adhere to pillar III (occupational / optional pensions) in its first year of activity.

The Government in June approved modifications to the law on privately managed pensions funds.

According to the new rules, people aged up to 35 years, insured in the public pensions system in line with Law No 19/2000, are compelled to join a privately managed pensions fund.

For people aged up to 45 years, who are already insured and contribute to the public system of pensions, the contribution to a privately managed pension fund remains optional.

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FDI Rise by 93.3% in Jan-May '06

IulianBulandra — 2006-07-27T10:28:00+00:00

The foreign direct investments for the first five months of 2006 rose by 93.3% y/y, up to EUR 2.9 bn, according to data released by the National Bank of Romania.

In May 2006, the value of the foreign direct investments worth EUR 600 Mn, compared to EUR 500 Mn registered in May

2005.

Romanian current account deficit in January – May was covered by 85.7% from foreign direct investments.

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8 mln Bank Cards in Circulation

IulianBulandra — 2006-07-27T10:25:00+00:00

Almost.8 million bank cards are currently in circulation in Romania, according to figures provided by the National Bank (BNR), according to ING Financial News The increase rate in the first four months of this year was 158,000 cards a month, compared to 94,000 cards a month in the same period a year ago.

Bucharest accounted for 24 percent of the total number of cards at the end of April, up from 22.5 percent in April 2005 and 20.2 percent in April 2004.

A growing number of Romanians prefer to make payments by cards, which mainly include Visa, MasterCard and Euroline.

Transactions recorded at retail shops have grown by 105 percent to about eight million, while their value amounted to 455 million dollars, a 127 percent increase compared to the end of April 2005.

The overall value of transactions - both at ATMs and retail shops - has reached 5.4 billion dollars, marking an annual increase of 68 percent. There were 64 million such transactions at the end of this April, a 27 percent rise on end-April 2005.

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Online Banking is Growing Fast

IulianBulandra — 2006-07-27T10:25:00+00:00

Despite the enthusiasm of many Romanians for the Internet, many people retain their suspicion of new ways of doing things especially virtual ones. It is little surprise then, that despite the obvious advantages no queuing, 24-hour-a-day service online banking has yet to really catch on in Romania, according to ING Financial News. At the moment, people still prefer to go to the branch than bank from home.

But with the rise of internet literacy in general, and the obvious convenience of the system, local levels of online banking are beginning to increase, and should quickly gain converts, Business Review says in its latest edition.

By the end of March, about 118,000 clients were using distance payment instruments, like the internet, mobile or home banking, according to data released by the Ministry of Communications and Information Technology.

At that time, 26 banks were fighting on the market with 22 solutions for internet banking, 12 for home banking, three for mobile banking and only two for internet and home banking.

About 2.2 million transactions were made through these systems in the first quarter of the year, with a total value of 25 billion euros.

This shows a 220 percent increase in the number of transactions and a 360 percent increase in value, compared with the previous year.

Although Internet banking services are not offered by all the institutions operating on the local market, the service is rapidly gaining in popularity.

As shown by Raiffeisen, the latest entrant on this market, the investment made in offering the service is somewhere up to 1 million euros, but bank charges decrease by 25 to 50 percent for internet banking users compared with the ones who go to the front desk.

The security of the systems which offer the service has to be tested annually by individuals or companies authorized by the state to be e-system auditors.

The challenge for the banking industry has been to design this new service channel in such a way that its customers will readily learn to use and trust it.

Unlike the high street bank, online banking sites never close; they're available 24 hours a day, seven days a week, and they're only a mouse click away, no matter the geographical position of the client.

This means that utilities charges, telephone bills and other similar payments can be made at any hour of the day.

Among the disadvantages of the system is the fact that banking sites can be difficult to navigate at first, while learning to trust the security of the system is an important issue too.

In her opinion, Romanians' interest in internet or online banking services will increase along with the internet access penetration rate, while the perspectives of the country's future EU accession will speed up the process.

TerraBanking, the Internet banking service offered by Romexterra Bank, is currently used by 2,480 clients, said representatives of the institution.

They consider that this type of product registers an increase of the market penetration rate, which reflects how far the clients are familiarizing themselves with the solution as well as the efforts of the banks in this respect.

The volume of the transactions made through TerraBanking since it was launched in October 2004 until the end of 2005 was more than 770 million euros, which reflects the increasing trend of the number of users.

In the individual segment, more than 75 percent of payments are made through online banking.

In order to be able to use the service, the client has to go through three levels of security, which involves knowing the username, the PIN code and a supplementary unique security code available only 30 seconds from the time it is generated and only for one transaction.

The latest bank to launch the service on the local market is Raiffeisen Bank.

Raiffeisen Online for individuals was launched at the end of May this year, and representatives of the institution say that there are already more than 5,000 users of this service.

Steven van Groningen, the president of Raiffeisen Bank Romania, said when the service was launched that about 800,000 euros was invested in IT, software and marketing for the service.

He estimated that this would be available to companies too by autumn.

Although Internet banking has had a shy start on the local market, the service is expected to increase in importance and number of clients as the country joins the European Union and the penetration rate of the internet access increases.

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Turceni Shares to be Listed

IulianBulandra — 2006-07-27T10:23:00+00:00

The Ministry of Economy and Trade (MEC) has announced its intention to sell 51% of the social capital of Turceni energy complex to a strategic investor or to a consortium of investors through a mixed method, social capital increase through cash inflow and shares selling through negotiation, ACT Media news agency informs. According to a draft governmental decision drawn by MEC in the case an investor or consortium take over 51% of the Turceni unit, the next stage, not later than a year, the ministry will start the procedures for the initiation, undergoing and closing of a public bid for the selling of at least 5%.

Within the 51%, the strategic investor may take into consideration both the participation of BERD and of International Financial Corporation (IFC) as financial investors, as the two international financial institutions have expressed their interest in the Turceni unit privatisation.

The Turceni unit is the largest in Romania with an installed capacity of 2,310 MW ( seven units of 330 MW each installed power and the eighth unfinished, with removed investment) and an operational capacity of 1,575 MW ( five operational units, one unit under rehabilitation and one group withheld from operation).

For the rehabilitation of the existing capacities the need financing is estimated at 450 million dollars and the compliance with the EU environment requirements will cost 503 million dollars.

« Romania has a strategic interest that at Turceni the production of electricity may be continued for a long time, by using coal as sustainable source of energy and installed power sufficient to ensure safe electricity supply.

The necessary installed capacity is estimated at 1,200 – 1,300 MW, the effective one around 1,100 MW” the governmental decision informed. There are two possible scenarious for the Turceni complex future development.

The first one includes functioning of four groups ( designed in the 70’s) to be rehabilitated and the installation of desulpharing burning gasesunits.

The second scenario speaks about the continuation of the power plant functioning with the four groups,but half of them to be replaced with new ones using high level technology.

The privatisation commission for Turceni will be made up of the minister of economy and trade – chairman and six members : the head of the State Participation and Industry Privatisation Office, a state secretary in MEC, another from finances, a state secretary from Ministry of Work, one from Environment and the general director of Turceni.

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Phishing Attempt on Card Owners Uncovered

IulianBulandra — 2006-07-27T10:23:00+00:00

Romanian Softwin company's data security division BitDefender and the IT experts of the Romanian Commercial Bank (BCR) uncovered early on July 18 a phishing attempt - i.e. an attempt to steal personal data - targeting the owners of cards issued by several Romanian banks, according to Rompres and ING Financial NewsThe method involves an email apparently sent by a bank, a big company or a state institution to its clients, asking them to enter a Web site and re-introduce their personal data (personal numerical code, the bank card and PIN, online payment accounts and their passwords).

In this case, the users got an email message apparently issued by the BCR asking them to enter a special Web page, where they were asked to disclose their card number and PIN and the issuer bank.

The message, while ingenious, has many grammatical mistakes, which indicates the hackers might not be Romanian.

The Web site strives to be convincing, and it features Visa, MasterCard and BCR logos; it also contains a form by which the owner of the card - supposed to be issued by banks like BCR, Ion Tiriac, Alphabank, Carpatica, Transilvania, Eurombank, Citibank and HVB Bank - is invited to disclose his/her personal data.

The whole scheme relies on the card owner's fear that money from his/her account might have been spent without his/her knowledge.

In order to prevent possible cyber-attacks, the users are advised not to click on a message link and be careful whenever they receive any kind of messages related to financial activities, apparently sent by the banks, since most banks clearly explain in their policies that they will never send emails asking for personal data.

Phishing causes more than 50 billion dollars in damages worldwide a year.

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Rovinari Power Plant, Profit 89 mln RON in 2005

IulianBulandra — 2006-07-27T10:21:00+00:00

The Rovinari power plant registered a gross profit of 89 million RON ( almost 24,69 euros) in 2005 to a turnover of 705,65 million RON ( almost 196,01 million euros) the company’s data show, ACT Media news agency reports.Own capital of the power plant are worth 552,70 million RON. The average number of employees was of 3,956. Last year, the external audit was the KPMG company.

Rovinari power plant produces and supplies electrical energy on coal and in June it was involved in the Energia scandal.

The minister of economy and trade Codrut Seres stated that several traders buy cheap energy from power plants and resells it at higher prices to Electrica.

In 2004, the net profit of the power plant was of 30,70 million RON for a turnover of 462,82 RON.

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Biodiesel Business in Sibiu

IulianBulandra — 2006-07-27T10:20:00+00:00

The German MAN Ferrostaal consortium starts the construction of a farm and of a biodiesel plant in the Sibiu county, ACT Media news agency reports.The German investment will reach 138 million euros for the construction of a refinery for vegetable rape oil, raw material for biodiesel.

The local council Atel, the county council Sibiu, the MAN consortium and Dafora company joined into a joint-stock company – Biodiesel Transylvania – to construct the biodiesel plant.

“ The works on the refinery should be started this month, but due to problems connected to authorisation, the project will start in August – September” Sergiu Moldovan, the mayor of Atel informed.

According to him, the project will be finalised in 12 months.

The new company Biodiesel Transylvania will run an investment of 138 million euros to build a refinery for rape oil, raw material for biodiesel.

The direct investment will be over 88 million euros, the rest of the sum being used to support vegetable rape cultivation.

The German company is not the only one interested in Romania. Biomart, a branch of the Portuguese Martifer will start at the end of the year biodiesel production in Romania.

The plant, placed in Calarasi county will produce 100,000 tons biodiesel/year, after an investment of 50 million euros.

Rompetrol has plans in this direction, not for export but for their own filling stations.

Starting with 2007, Rompetrol hopes to sell 60,000 tons biodiesel. .Biodiesel is a natural fuel, produced in Europe since 1992.

The EU directives include the reduction of dependency on energy import and decreasing of greenhouse gas emissions.

Member states will have to replace 20% of traditional fuel with biofuel by 2020.

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RAAN to Buy Energy from Romelectro

IulianBulandra — 2006-07-27T10:20:00+00:00

The Nuclear company for Nuclear Activities (RAAN) will buy next month electrical energy from Romelectro according to a contract signed on Wednesday at the energy stock market, ACT Media news agency reports.The bid organised by OPCOM ( operator on the electrical energy market) offered RAAN three supply offers, all from energy dealers.

They include Enol Grup SA, Ezpada SRL and Romelectro, the bid being won by Romelectro. The starting price was 132 lei/MWh andsupplied energy flow of 30 MW.

Romelectro is one of the dealers from which Electrica bought energy up to July 1, 2006 when they cancelled the contract following the Energia scandal started after an investigation of the Control Corps of the minister of economy showed that several traders had bought cheap energy from power plants and sold it at higher prices to Electrica.

Romelectro is one of the dealers involved in the scandal.

To stop any such business, the minister of economy Codrut Seres ordered that all energy producers sell energy through the OPCOM.

Autonomous State-owned Company for Nuclear activities Drobeta Turnu Severin, 100% state – owned company was set up through government decision nr. 365/1998 with amendments, with main operation aim to produce heavy water and derivatives, electrical and thermal energy production for industrial and home use, as well as techonological engineering activities for nuclear objectives research in the nuclear domain.

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