Financial Press Review, 26 July

Below the headline “Government releases 6 billion RON into the economy in June”, the Ziarul Financiar writes: “Capital spending, meaning state investments, gave signs of revival in June, after more than two and a half years of permanent fall, but spending on goods and services has also increased”.

The Bursa points out another revival sign: “loans to companies and population increased by 2.9 percent in June”. “This is a sign that the economy is improving”, the daily quotes Aurelian Dochia, analyst.

“The number of people that have fallen behind on credit payments has increased by 4 percent, reaching a new historic highest: 4.5 billion RON. “For the first time, back payments for foreign currency loans, including Swiss francs, have exceeded 1 billion RON”, the Bursa reads.

Below the headline “Would you like to know Romgaz’s profits or Nuclearelectrica’s business in these past years? Fondul Proprietatea can show you”, the Ziarul Financiar estimates that “publishing the financial results of the 20 biggest companies in FP’s portfolio is the best measure of Franklin Templeton since taking over management in September 2010. The sheets and annual reports were usually published at the end of the year.

The price of the shares is well below the value of the assets because of the lack of transparency in unlisted companies from the FP portfolio.

A Ziarul Financiar headline reads: “Back stage of Petrom’s offer: the less known causes of the failure and who will pay the bill”. The daily writes that “we have the most regulated market in the world. Foreign investors seek easy access, not headaches”, a broker explains. “Will there be another mediator?”, the daily reads. “The parameters will probably be changed, maybe even the sale method”, says Victor Cazana, manager of State Participants and Industry Privatization Office.

Minister of Economy Ion Ariton said that the offer will be resumed next year.
“For now”, the Ziarul Financiar reads, “the manager of State Participants and Industry Privatization Office claims that the state will carry on its privatization program and hopes to respect the calendar it assumed: launching the sale offer of 15 percent of Transelectrica shares in October”.

Below the headline “War over Health Care body”, the Capital writes that patients “find it hard to grasp that there is a fraud octopus monopolizing Health Care state funds”, while the attempt to finish the electronic system is constantly sabotaged from the inside. “Generic medicine, cheaper, but just as good, is encouraged all over Europe, but discouraged in Romania – Minister Officials travelling in exotic locations know why”, the Capital reads.

Translated by Gabriela Lungu
MA Student, MTTLC, Bucharest University