BURSA 08.01.2013
Patrick Young: 2012, a lost year for Romania
     Reporter: Mr. Young, how was, in your opinion, the year 2012, from economic and financial point of view, globally, regionally (Europe) and locally (Romania).
     This has been a tough year for many economies and while the world limped along (with a few areas of eager consumer expansion such as Russia), the situation in the EU was precarious at best and little short of dire in the worst places.
     In terms of Romania, it felt to me like another year that was largely lost to growth which is such a pity when we see the wealth of talent and resources in this wonderful country.
     The problem for every government in 2012 has been the need to realize (not achieved by any major government so far) that the old era of the delusional European "third way" of a quasi-socialist government spending to control vast swathes of the economy is simply unaffordable. Now some nations are suffering appalling shocks because the money has run out, e.g. Greece, while others such as Spain have horrific problems with youth unemployment and overall joblessness. Then again, investors are not very motivated to invest in countries where they don't see much potential for reform and here governments have been cowardly in "biting the bullet. Put simply: the era of spendthrift government is over.
     Patrick Young: How do you think the things will evolve in 2013, from the same perspective of financial and economic issues at global, regional and local level?
     Well here we are chatting away with the USA dangling precariously on the precipice of the fiscal cliff. The USA exemplifies the "spend like a footballer's wife' approach to government. In just 30 years "pork barrel' politics have multiplied the US balance sheet from a total debt of 908 billion dollars thirty years ago to now borrowing 100 billion dollars per month. No, don't even think of translating those numbers into Lei, they are grim enough in US dollars! The US government spending limit was increased from 14.3 trillion to 16.4 trillion dollars as recently as 2011. In terms of spending what you cannot afford, it is difficult to tell who is worse when comparing western Europe with the USA! ...and don't get me started about Japan with debt well in excess of 200% to GDP. That is an ugly ratio for any nation!
     Even if the US government manages to turn around its addiction to spending, US consumers may simply stay away from the shops. In Western Europe, there is a total vacuum in economic leadership and governments such as France live in a Shangri-la world where economic gravity can apparently be defied.
     In summary, I am deeply concerned as, unfortunately, many of the chapters in "The Gathering Storm" which I edited a few years back are becoming reality.
     At a regional level, the "New Europe" is going to suffer the tail winds of any storm battering either the West or the Far East. Moreover, the region's economic powerhouse Poland is already encountering difficulties sustaining growth. Only in Russia does there seem to be sustainable consumer demand currently and even that may yet shut down if a sudden western recession hurts demand for oil and gas.
     Overall, I see a challenging year ahead although as a natural optimist I also must stress that there are great opportunities to be found, particularly in the New Europe and especially in Romania. However, funding acquisitions is tough and that will keep a lot of investors on the sidelines.
     Reporter: What do you think about Romanian Capital Market evolution in 2012? Please give some perspectives for 2013.
     Patrick Young: I really don't want to sound overly cynical here but the truth is the Romanian capital market is in crisis.
     Brokers and bankers have been fleeing Romanian investment markets. BVB and SIBEX are both seen as utterly peripheral (at best) to investors and it is difficult to justify maintaining capital markets teams in the face of markets which simply don't even begin to fulfill their potential.
     Adjusting prices may help create a blip but the difficult is that Romania's exchanges are like a pair of corner shops when what we need is a supermarket.
     From what I can see, there is no coherent plan or thinking to actually create a tangible Romanian capital market. As I understand it, there are less than 85,000 customer accounts in Romanian exchanges. Even during a bruising year for stocks, the Warsaw SE added more than 25,000 accounts in one month.
     Put simply: nobody trusts or sees the benefit of the Romanian capital market and there is no leadership to define it going forward. That is a tragedy for the many good people employed in the industry who are being held back by a complete lack of understanding how to go about providing capital markets services to the Romanian and regional economy. It is a very frustrating affair but confidence is a very precious thing and alas, as a whole, Romanian markets do not engender confidence in investors either at home or abroad. The images of Romanian investing in the minds of foreign investors currently is one of liars, fraudsters and cheats...and let's face it that was the one big story which emanated from the Romanian marketplace last year.
     One positive, albeit complex, step will be the creation of a new unitary regulator. I say this not to criticise CNVM but rather that a new unitary regulator can hopefully help mark a new beginning for Romania's markets in every sense. It will be hard work to create this new body but it can do a lot of good and I wish it every success.
     Reporter: We know that you are an active entrepreneur. Would you invest in Romania in the future or advise somebody to do it, in the capital market or any other domain?
     Patrick Young: I have been investing in Romania recently along with other nations in the New Europe and maintain staff in Sibiu. Then again I am willing to be a contrarian investor. Romania's many incredible fundamentals (an amazing qualified, diligent, and enthusiastic, talent pool, low costs of operation and good internet connectivity to name just three core facets) are often over-shadowed by the utterly sclerotic bureaucracy and the perception of corruption.
     At present, I continue to look for investments and am interested both in private and publicly held businesses in capital markets and elsewhere. I see a vast amount of untapped opportunity in Romania. Then again, the problem is that the same can be said of Poland, Serbia & the former Yugoslavia, Slovakia and a dozen other countries in the "New Europe." It's a competitive market for investment and to succeed, a nation needs to give investors confidence.
     Reporter: As a shareholder of Sibex, what do you expect from the new Board? Are you satisfied with the results?
     Patrick Young: I had hoped to see immediate action after the EGM to restore confidence in the marketplace but in fact there seems to be total inaction so far. The market has made no attempt to atone for its scandalous past and the board of directors collectively has yet to demonstrate that they understand the core failings of the exchange.
     Ultimately, there is little confidence in using SIBEX. It has not got a sensible product mix for the markets we are in. The management is not credible and the only plan from what I can see is to attempt a little granular tinkering around the edges of existing products when what the exchange needs is a total revolution and restoration from the ground up. True, Rome wasn't burnt in a day and alas SIBEX continues to fester.
     SIBEX is not so much an exchange, more a discredited entity missing a rich seam of opportunity.
     The current plan for SIBEX is reminiscent of buying a man in a coma a pair of running shoes in the anticipation it will make him fit and healthy again.
     Yet with exchange platforms remaining an exciting arena for development, in the right hands there is still a great opportunity to create a regional marketplace even from the current mess which can within a few years be worth 30-50 million Euros and more.
     Naturally, I am a very disappointed small shareholder. I invested in an exchange with a future, found myself soon owning a glorified ponzi scheme and now we have a very sick enterprise with no clear direction. This is another tragedy of the Romanian capital market...
     I sincerely hope 2013 will be better than 2012 but right now I am not very confident. 
 

 
Readers' comments    [ add a comment ] 
1.  interesting...
    (mesaj trimis de eu****** în data de 08.01.2013, ora 12:54)  
 Well a lot of disappointing points regarding SIBEX, but very clear said.
 I love the sentence:"True, Rome wasn't burnt in a day and alas SIBEX continues to fester." that I may concluded for a subtitle for this article " SIBEX contnues to fester..."


 
Aceeasi sectiune (English Section)
AFTER BEING INVESTIGATED BY THE TAX ADMINISTRATION AND THE ANPC, BANKS GET INVESTIGATED BY THE COMPETITION COUNCIL
THE COURT RULED THAT SOME CONTRACTS CONCLUDED BY CELL PHONE COMPANIES INCLUDE ABUSIVE CLAUSES
AFTER THE TRANSACTION BETWEEN BANCA TRANSILVANIA AND BANCPOST
PATRICIA SUÁREZ RAMÍREZ, THE PRESIDENT OF THE ASSOCIATION OF FINANCIAL CONSUMERS OF SPAIN:
THE QUICK RISE OF THE INDEX WHICH SETS THE TREND FOR INTEREST RATES ON LOANS DENOMINATED IN LEI ISN'T STOPPING
THE PARLIAMENT IS ASKING FOR INFORMATION CONCERNING THE INVESTIGATIONS WHICH OMV PETROM HAS BEEN SUBJECTED TO
Actualitate - vezi toate știrile mai jos.
Bănci-Asigurări, 13:11
     * Dolarul a pierdut 2,46 bani în fața monedei naționale
     * Francul a coborât la 3,9642 lei
       Banca Națională a României (BNR) a anunțat, astăzi, un curs de referință de 4,6332 lei pentru moneda europeană, în creștere cu 0,05 bani, comparativ cu ședința de ieri, când euro a fost cotat la 4,6327 lei.  detalii
Politică, 08:15
UPDATE
     * ACTUALIZARE 14:41 Dircă, USR: "Dacă se adoptă modificările propuse de PSD-ALDE la Coduri, datele informatice obținute în dosarul lui Dragnea trebuie șterse, iar înregistrările cu crima de la metrou nu ar mai putea fi folosite"
     Senatorul USR George Dircă a declarat astăzi că, în cazul în care propunerile de modificare a Codurilor penale formulate de PSD și ALDE ar fi adoptate, înregistrările informatice nu ar mai putea fi utilizate în instanțe, ceea ce ar avea impact inclusiv asupra dosarului lui Liviu Dragnea, dar și asupra cercetărilor crimei de la metrou.
     * ACTUALIZARE 11:24 Comisia parlamentară specială condusă de Florin Iordache a amânat pentru luni dezbaterea și votul modificărilor propuse la cele două Coduri penale pentru transpunerea Directivei Parlamentului European privind prezumția de nevinovăție și a dreptului de a fi prezent la proces.  detalii
Companii-Afaceri, 14:49
     
     Grupul Enel Spa ("Enel"), prin subsidiara sa americană de energie regenerabilă Enel Green Power North America, ("EGPNA"), a câștigat astăzi două Acorduri de Sprijin pentru Energie Regenerabilă ("RESA") pentru un nou parc eolian de 146 MW în Alberta, Canada, în cadrul unei licitații organizate de Alberta Electric System Operator ("AESO"), potrivit unui comunicat de presă trimis Redacției.  detalii
Companii-Afaceri, 14:47
DELOITTE ROMÂNIA:
     Pe fondul unei economii stabile în regiune și a indicatorilor macroeconomici în creștere, România a câștigat încrederea investitorilor, devenind astfel o piață principală în zonă, alături de Polonia, potivit Deloitte Central Europe Private Equity Confidence Survey, se arată într-un comunicat de presă remis Redacției.  detalii
Companii-Afaceri, 14:19
     Ministerul Energiei a autorizat plata primei cereri de rambursare prin Planul Național de Investiții (PNI), de la înființarea acestuia, în 2013, potrivit unui comunicat de presă remis Redacției.  detalii
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14.12.2017
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     * "Întotdeauna, din piețele mici, se iese mai repede decât din cele mari, pentru că lichiditatea este mai scăzută", punctează analistul
     * "Deal" de aproape 17 milioane de lei cu titlurile DIGI
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12.12.2017
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BURSELE DIN LUME
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English Section
12.12.2017
AFTER BEING INVESTIGATED BY THE TAX ADMINISTRATION AND THE ANPC, BANKS GET INVESTIGATED BY THE COMPETITION COUNCIL
     * Chirițoiu: "We suspect an exchange of sensitive information on the banking market"
     * Dan Suciu, NBR: "The audits of the Competition Council can't be a reason for panic whatsoever"
     * Unannounced audit at Finmedia
     * The investigated institutions are at risk of being fined 10% of their turnover
     * Vasilescu: "The NBR has nothing to do with these investigations"
       The financial banking system seems to be the focus of most of the investigation entities. After being audited by the National Tax Administration Agency (ANAF) and by the National Consumer Protection Authority (ANPC), some of the banks which operate in Romania have also been investigated by the Competition Council (CC).  details
11.12.2017
THE COURT RULED THAT SOME CONTRACTS CONCLUDED BY CELL PHONE COMPANIES INCLUDE ABUSIVE CLAUSES
     * The Bucharest Court of Appeal Bucharest yesterday ruled that RCS&RDS has abusive clauses in its contracts
     * The ANPC has also won the initial lawsuit against Telekom România
     * Vodafone has lost the case in the court of last instance against the ANPC
       The Courts have decided that some contracts concluded by the telephony companies contain abusive clauses. The Court rulings were rendered last year, as well as in 2016, but the argumentations have been formulated relatively recently.  details
08.12.2017
     The hope of an accession as quick as possible by Romania to the Eurozone was dealt a heavy blow precisely on the National Day.  details
06.12.2017
AFTER THE DRAFT HAD BEEN PUBLISHED IN OCTOBER
     * Gheorghe Șimon: "The royalties law will be voted in the Parliament in February next year"
     * Ministry of the Economy: "We will establish royalties which are fair both for the state as well as for the business sector"
     * Daniel Cătălin Zamfir, PNL: "I found out that there are companies that have never, take note, never paid even one leu in royalties to the Romanian state, even though they have been exploiting resources for over 20 years"
     * Last year, the Court of Auditors announced that Romania lost 1.4 billion dollars, because the ANRM established the oil royalties in a flawed manner
       The entire legislative package concerning the regulation of the system for the regulation of the mineral, oil and hydromineral resources will be revised and will be voted in the Parliament in February next year, Economics minister, Gheorghe Șimon, announced yesterday, after the debates of the Economic, Industries and Services Commission of the Senate.  details
28.11.2017
AFTER THE TRANSACTION BETWEEN BANCA TRANSILVANIA AND BANCPOST
     * Customers with borrowers in CHF from Bancpost are waiting for a conversion program with a discount
       After moving to second spot last year in the domestic banking system, through the acquisition of Volksbank, Banca Transilvania (BT) ends up on equal footing with BCR, taking over Bancpost, from Greek group Eurobank.  details
27.11.2017
     * MAKE, BURSA: "I want the new CEO of the BSE to participate in the drafting of a new strategy for the development of capital market"
       On Thursday night, "BURSA" received the Award for the promoting of high standards of corporate governance on the capital market, as part of the 2017 Capital Market Awards Gala, organized by the Association of Brokers.  details
24.11.2017
     * Ciprian Păltineanu and Adrian Tănase, scheduled for meetings with the board
     * Both candidates seem to be closet o the group in the shareholder structure of the BSE
     * George Butunoiu is in charge of recruitment
     * The waiting list may include a few foreigners, including former BRD executive Jacek Panczyk
       According to some market sources, banker Ciprian Păltineanu and Adrian Tănase, Chief Investment Officer at NN Pensii România, will hold interviews in the beginning of next week with the Board of the BSE, after Ludwik Sobolewski's term expired in the summer.  details
23.11.2017
PATRICIA SUÁREZ RAMÍREZ, THE PRESIDENT OF THE ASSOCIATION OF FINANCIAL CONSUMERS OF SPAIN:
     * The head of the ASUFIN: "The ruling of the Supreme Court of Spain in which the Andriciuc case has been invoked will be part of the Spanish case law and the lower courts will be required to apply the principle that underlies this decision"
       The ruling issued by the Court of Justice of the European Union (CJUE) in the Andriciuc versus Banca Românească case represents a great advantage for Spanish debtors, said Patricia Suarez Ramírez, the president of the Association of Financial Consumers in Spain (ASUFIN), as part of a response recently sent to BURSA.  details
22.11.2017
     * Dragnea: "Those who are against me are hiding behind institutions"
       The president of the Chamber of Deputies, Liviu Dragnea, leader of the PSD, thinks that his enemies are hiding behind some institutions, "they crucify people", and the real stake is "the blocking of the Laws concerning the Justice system".  details
21.11.2017
     The Council of the European Union and the European Parliament have sent to the ECB, in the beginning of this year, a request concerning the sending of some proposals to revise the framework for managing crises.  details
20.11.2017
ANPC STRIKES AGAIN
     * BCR: "Ongoing contracts no longer contain the clauses that have been subjected to examination"
     * Sources: "ANPC has 6 lawsuits against BCR, which will lead to enormous losses for Erste Bank if BCR loses in court"
       After forcing Raiffeisen Bank to eliminate the unfair practices from the loan agreements, the National Consumer Protection Authority (ANPC) strikes again, this time the biggest bank in the system. BCR lost in the court of first instance, against the ANPC, in a class action lawsuit concerning abusive lending clauses.  details
16.11.2017
THE QUICK RISE OF THE INDEX WHICH SETS THE TREND FOR INTEREST RATES ON LOANS DENOMINATED IN LEI ISN'T STOPPING
     The 3-month ROBOR rate, which is used to calculate the interest rates, the majority of the loans denominated in lei, has jumped past the 2% psychological level, and yesterday reached 2.06%, up from Tuesday's 1.92%, according to data from the NBR.  details
16.11.2017
THE PARLIAMENT IS ASKING FOR INFORMATION CONCERNING THE INVESTIGATIONS WHICH OMV PETROM HAS BEEN SUBJECTED TO
     * Minister Toma Petcu, former ministers Răzvan Nicolescu and Victor Grigorescu, the representatives of the state in the executive structure of OMV Petrom and Mihai Busuioc, the president of the Court of Auditors were heard today in the Investigation Commission
       The executives of OMV Petrom mentioned, in a letter addressed to the parliament, the existence of four lawsuits brought by the National Energy Regulation Authority (ANRE) and of seven audits by the Authority, between 2012-2017, as the recent request for information by the Commission for the Investigation of the activity of the ANRE targeted a period of 12 years, from 2015 to 2017.  details
14.11.2017
THE EURO AT AN ALL-TIME HIGH
     * Vasilescu: "We cannot say that the currency market has gone off the rails, the exchange rate has moved 4 bani in 4 days"
     * "Perhaps it is a simple coincidence the fact that on November 8th was approved the Emergency Ordinance of the Fiscal Code and it was also on that day that the Euro rose past 4.6 lei", said Mr. Vasilescu
       The leu yesterday reached a historic low against the Euro, 4.6495 lei/Euro, up 1.05 over the previous meeting, marking the fourth day where the exchange rate was above 4.6 lei.  details
13.11.2017
     In October, the Romanian Commercial Bank, through Schoenherr și Asociații, has submitted, with the County Court of Bihor, a request for the insolvency of the European Drinks group, owned by the Micula brothers. That group includes: European Drinks, Transilvania General Import-Export, European Food, Starmill SRL, Scandic Distilleries SA, Rieni Drinks.  details
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