Financial Press Review, January 21

The chance given by listing Fondul Proprietatea, more efficient public spending and the hope that the economy will recover are just some of the main topics in today’s financial press.

Under the front page headline ‘Listing Fondul Proprietatea – Bucharest Stock Exchange chance at a come-back,’ the Ziarul Financiar reads that ‘with this event, the stock exchange has taken its first step towards development.’

‘The impact of this listing in the real economy will also depend on whether the Government understands the need to keep foreign investors interested in Romania, by future listings of public companies, such as Romgaz, Hidroelectrica or Nuclearelectrica, where the Government is the majority stockholder.’

‘In case there will be other public offers for other important listed companies, and even new listings of public companies, then we can talk about a deeper local stock exchange,’ the Bursa reads.

The Ziarul Financiar presents the main ideas of an interview given by Romania’s representative to the IMF. Mihai Tănăsescu points out that ‘while in many countries public companies bring substantial contributions to the budget, Romania is still giving out public money to help such companies survive.’

‘First we need to redefine the purpose of these companies, see which are viable, which carry national weight and then think up a restructuring process that would require, first and foremost, economic efficiency,’ Mihai Tănăsescu claims.

The same daily complains in an article that we always hear ‘we will’ or ‘we have to’.

‘No balance sheets, no assessment of what has been done, of the resources and the results. Self-sufficiency and stillness, rejecting opinions that were different or even violently attacking those that ask questions or are questioning the efficiency of public servants cannot bring anything good.’

‘Romania’s situation is not desperate, but it needs external help,’ Bursa quotes Cristian Ionescu, Coface managing director.

This statement is the headline of a Curierul Naţional article, which reads: ‘Political stability is still a vital factor in the country’s economic performance.’

‘We need to rid ourselves of political and most importantly fiscal instability.’

Under the headline ‘Nuclearelectrica is pretty much the only one left in the reactor project,’ the same daily discusses the withdrawal of some foreign investors from the project to build reactors 3 and 4 at Cernavodă.

GDF Suez in France, RWE in Germany and Iberdrola in Spain have decided against joining the project, the Bursa reads.

‘All companies gave the same official reason’ – the Curierul Naţional reads – insufficient funds and other major foreign investments.

But the unofficial reason could well be the authorities’ inconsistency about the new energy policy, especially about setting up the two national power companies, which has been put off for almost two years because of the debt of some companies.’

‘The decision of the investors does not doubt the quality of the project, recently recognized by the EU,’ or the dedication of the said groups to evolve on the Romanian power market, the Bursa prints in relation the yesterday’s press release.

Translated by: Gabriela Lungu
MA Student, MTTLC, Bucharest University