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August 9th, 2005 Foreign investments up 35% in the first half of 2005
The Romanian Agency for Foreign Investment aims at attracting a volume of foreign direct investments of EUR 3.2 bln - EUR 3.8 bln. August 9th, 2005 CEC expects letters of intent for its privatization by August 31st
The participating banks must be internationally known financial institutions. August 8th, 2005 Romanian government approves strategy to reform public procurement system
The strategy aims at law and institutional adjustment, the adoption of the EU practices in the field and at streamlining efficiency, transparency and competitiveness of the public procurement system. August 8th, 2005 Romanian Competition Council endorses HVB Tiriac
The merger of HVB Bank and Banca Tiriac resulted in the 4th largest player on the Romanian banking market. August 7th, 2005 Romanian government approves setting up of Holocaust institute
The main activity of the institute is the research into and the examination of the Holocaust. August 4th, 2005 Austrian Chancellor voices conviction that Romania and Bulgaria's accession to EU will happen on January 1, 2007
The themes of interest for the Austrian presidency of the EU - the development of the Danube infrastructures - is advantageous for Romania’s accession to the EU and its economic development. August 2nd, 2005
Romanian bank BCR ready for privatization July 28th, 2005 New harsher law to fight tax fraud
Fiscal evasion will be punished by jail July 26th, 2005 Romania's GDP estimated to advance 8.3% in 2005
Romania's industrial output is expected to advance 5.7% in 2005, while agriculture output is projected to grow by 2.8%. July 6th, 2005 Conditions for foreign direct investment in Romania to be improved
Romanian Agency for Foreign Investments and Foreign Investors Council work together to identify the investment priorities for each area and grant more facilities to investors |
News - full article
August 8th, 2005
Romanian Competition Council endorses HVB Tiriac
The merger of HVB Bank and Banca Tiriac, which will create the fourth largest player on the market in terms of assets, is not likely to result in the consolidation of a dominant position, believes the Competition Council, which recently endorsed the operation.
Consent from the competition authorities was necessary to the merger, as the cumulated turnover of the two banks last year exceeded the legal threshold of 10 million euros (the equivalent in RON).
According to the decision by the Council, the parties signed a stock sale contract on June 16, which will see Bank Austria Creditanstalt (the majority shareholder in HVB Bank Romania) acquire 50% plus one share in Banca Tiriac.
At the same time, Dutch Redrum, a company controlled by the businessman Ion Tiriac (the majority shareholder in Banca Tiriac), will receive from Bank Austria a number of shares in HVB Bank Romania, accounting for 50% minus one share in the latter, in return.
According to the decision, the stock sale contract stipulates that the transactions will take place when certain terms are met, in the absence of which the contract cannot be fulfilled.
This deal will enable Bank Austria to obtain sole control over Banca Tiriac, and the entity resulting from the merger, HVB Tiriac, will become the fourth largest bank in the system with over 2bn euros in assets and around 7.5% of the market.
Last year, Banca Tiriac had assets worth €620 M, ranking 11th on the Romanian banking market, and recorded a net profit of €17 M, 40% more than 2003. The volume of credits granted last year surpassed €330 M.
In the last quarter of 2004, the Fitch rating agency improved the long term rating of the bank to B+, which allows the bank to attract important financial resources from the international market. In 2005, the bank will continue to contract international funds which would be used to support the activity of Small and Medium Enterprises and the development of real-estate credits.
HVB Group is one of the largest banking institutions in Europe, with 9.8 million clients and 2,062 outlets. HVB Bank Romania recorded, at the end of 2004, assets of over €887 M and net profits of than €11.6 M, a 7% increase compared to last year.
(Sources: Ziarul Financiar, Mediafax, Bucharest Daily News, Dow Jones)
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