CONFERINȚA ANTREPRENORIATUL FEMININ "Femeia la putere - o lume mai buna" - Ediția a V-a
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)
WHILE THE GOVERNMENT IS POSTPONING THE INCREASE OF THE SHARE CAPITAL WITH THE VALUE OF THE PLOTS OF LAND
THE NATIONAL BANK OF ROMANIA IS PROVIDING FINANCIAL EDUCATION TO MAGISTRATES (II)
THE NATIONAL BANK OF ROMANIA PROVIDES FINANCIAL EDUCATION TO MAGISTRATES (I)
IN A LETTER SENT TO THE INM AND THE CSM, CONSUMER ASSOCIATIONS WANT TO BE PRESENT IN THE DEBATES
THE CURRENT MANAGEMENT HAS RECEIVED A NEW TERM, IN JUST ONE VOTING ROUND
THE FIRST COMPLETED AUDIT, AFTER THE TAX INSPECTIONS IN THE BANKING SYSTEM
Actualitate - vezi toate știrile mai jos.
Internaţional, 10:23
     Principalii indici bursieri de pe Wall Street, New York, au închis ședința de tranzacționare de ieri în depreciere.  detalii
Ediții precedente
Newsletter Facebook Twitter YouTube LinkedIn RSS
Jurnal Bursier
28.04.2017
BURSELE DIN LUME
     Bursele din Europa au scăzut ieri, pentru prima oară în ultimele șapte zile, după ce Banca Centrală Europeană (BCE) a decis să păstreze nemodificată dobânda cheie.  detalii
28.04.2017
BVB
     * Gabriel Rotaru, "Intercapital Invest": "Apropierea IPO-ului DIGI a găsit piața locală în corecție"
     * Titlurile "Fondul Proprietatea", cele mai lichide
       Toți indicii Bursei de Valori București (BVB) au încheiat ședința de tranzacționare de ieri în apreciere, în contextul în care a fost înregistrat un volum de 33,6 milioane de lei (7,42 milioane...  detalii
28.04.2017
SIBEX
      La Sibex, finalul de aprilie este unul modest, participanții depărtându-se din nou de piață, după ce săptămâna anterioară dăduseră impresia că sunt mai implicați în speculații, pe fondul unui...  detalii
27.04.2017
SIBEX
      După jumătate din programul de tranzacționare, ședința de la mijlocul săptămânii se anunța una foarte slabă.  detalii
27.04.2017
BVB
     * Titlurile "Banca Transilvania", cele mai lichide
       Șașe dintre indicii Bursei de Valori București (BVB) au încheiat ședința de tranzacționare de ieri în depreciere, în contextul în care a fost înregistrat un volum de tranzacționare de 39 milioane...  detalii
27.04.2017
BURSELE DIN LUME
     Bursele din Europa au fluctuat ieri, în condițiile în care unele companii au raportat rezultate financiare pozitive, iar altele - dezamăgitoare.  detalii
Cotații Internaționale

Curs Valutar

Curs valabil din data de 27 aprilie 2017
1 Dolar australian...
1 Leva bulgărească...
1 Dolar canadian....
1 Franc elvețian...
1 Coroană cehă...
1 Coroană daneză...
1 Liră egipteană...
1 Euro...
1 Liră sterlină...
100 Forinți maghiari...
100 Yeni japonezi...
1 Leu moldovenesc...
1 Coroană norvegiană...
1 Zlot polonez...
1 Rublă rusească...
1 Coroană suedeză...
1 Liră turcească...
1 Dolar S.U.A...
1 Rand sud-african...
1 Real brazilian...
1 Renminbi chinezesc...
1 Rupie indiană...
100 Woni sud-coreeni...
1 Peso mexican...
1 Dolar neo-zeelandez...
1 Dinar sărbesc...
1 Hryvna ucraineană...
1 Dirham emirate arabe...
1 Kuna croată...
1 Gram aur...
1 DST...
AUD
BGN
CAD
CHF
CZK
DKK
EGP
EUR
GBP
HUF
JPY
MDL
NOK
PLN
RUB
SEK
TRL
USD
ZAR
BRL
CNY
INR
KRW
MXN
NZD
RSD
UAH
AED
HRK
XAU
XDR
3,1061
2,3156
3,0613
4,1831
0,1680
0,6088
0,2296
4,5289
5,3615
1,4483
3,7358
0,2155
0,4853
1,0708
0,0732
0,4704
1,1651
4,1565
0,3133
1,3102
0,6029
0,0648
0,3664
0,2188
2,8628
0,0367
0,1564
1,1316
0,6052
168,9724
5,6913
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
click aici pentru cursurile pieței valutare - istoric
English Section
28.04.2017
ILAN LAUFER, MMACA:
     * The Start Up Nation program is set to be approved in the Parliament
       Taxes that can't be paid online will not be paid at all, Ilan Laufer, state secretary in the Ministry for the Business Environment, Trade and Entrepreneurship (MMACA), who mentioned that by...  details
26.04.2017
     EU politicians and the international markets have received with enthusiasm the result of the first round of the presidential elections in France.  details
25.04.2017
WHILE THE GOVERNMENT IS POSTPONING THE INCREASE OF THE SHARE CAPITAL WITH THE VALUE OF THE PLOTS OF LAND
     * The lawsuit concerns the payment of environmental obligations of 34 million Euros
     * Through the privatization contract, the Romanian state has committed to pay the decommissioning and environmental costs
     * The total amount of the OMV receivables against the government - 542 million Euros
     * Market sources are saying that both the works as well as their amount have been set by an interministry commission and that the Romanian government hasn't paid any part of that amount to Petrom
     * Sources: The company has received approximately 25-30 million Euros out of European funds, for the decommissioning and environmental costs
       OMV, the majority shareholder in "Petrom", has initiated an arbitrage proceeding against the Romanian government, on March 7, in the International Court in Paris, for the payment of...  details
21.04.2017
FLORIN GEORGESCU, FIRST DEPUTY GOVERNOR OF THE NBR:
     * Florin Georgescu: "Between 2009-2012, the sale price of non-performing loans has fluctuated between 2% and 7%, and in 2013-2016 - between 7% and 16%"
     * Last year, the tax administration initiated audits among banks, identifying irregularities that have serious consequences, according to Ionuț Mișa, former executive within the ANAF
       The quick expansion of lending and the effects of the crisis have led to the accumulation of a high volume of non-performing loans, (NPL), "substantially resolved in the last two years",...  details
20.04.2017
THE NATIONAL BANK OF ROMANIA IS PROVIDING FINANCIAL EDUCATION TO MAGISTRATES (II)
     The lending boom in the second half of the last decade was caused by a combination of factors, with the most important being, according to the opinion of the NBR, the overall trend towards...  details
19.04.2017
THE NATIONAL BANK OF ROMANIA PROVIDES FINANCIAL EDUCATION TO MAGISTRATES (I)
     The National Institute of Magistrates organized on April 10th, 2017, in its continuous training program, a new seminar with the participation of representatives of the National Bank of Romania.  details
13.04.2017
IN THE ABSENCE OF ANY ACHIEVEMENT, DECISIONS MADE LIGHTLY
     * BSE shareholders have approved the new commission plan, which will increase costs, especially for retail brokers
     * Claudia Ionescu, elected on the board of the BSE
     * The merger with Sibex has been approved by the General Shareholder Meeting
       The current management of the Bucharest Stock Exchange and its employees will be awarded shares that are bought back as part of a buyback program, as the shareholders of the BSE have decided...  details
12.04.2017
THE FIRST TRANSPARENCY EXAM, FAILED
     * DIGI Communications: "No individual may rely, for any purpose, on the information included in this press release, or on the accuracy, impartiality or exhaustiveness thereof"
     * The company isn't responding on whether it has submitted a request for the approval of the prospectus and what an "adjusted" EBITDA means, as the company has announced a margin of 31.2% for that indicator
       Dutch company "Digi Communications N.V.", the majority shareholder of "RCS&RDS" SA which holds 95.79% of the shares, yesterday announced that it intends to get listed on the...  details
11.04.2017
ALREADY FIVE YEARS OF DELAY
     * PNL senator intends to call the Secretary General in the Budget and Finances Commission for explanations
     * Mihai Busuioc, the current secretary general of the Government, is being nominated for a seat on the Supervisory Board of Petrom, on behalf of the government
     * PM Grindeanu has met with OMV Petrom officials twice in the last two months
       It's been already five years since Victor Ponta and the PSD government should have raised the state's stake in the biggest Romanian company, OMV Petrom, Florin Cîțu, the vice-president of...  details
07.04.2017
     "Ferrovial" SA, the Spanish company that is the biggest shareholder in London airport Heathrow, has decided to halt future investments in the airport, due to the uncertainties tied to the...  details
07.04.2017
     * "Sadalbari" creditors include - Banca Transilvania, International Investment Bank, as well as Stareal Limited, the offshore in favor of which the company has pledged its majority stake in "Romcab"
       "Sadalbari" SRL, which owns 69% of "Romcab" (MCAB) has entered insolvency upon request, on March 31st, according to the ruling of the Court of Mureș.  details
06.04.2017
IN A LETTER SENT TO THE INM AND THE CSM, CONSUMER ASSOCIATIONS WANT TO BE PRESENT IN THE DEBATES
     * Dan Suciu, NBR: "Every decision being made about these seminars belongs to the INM and the CSM"
       Four consumer associations - Parakletos, the Association of Romanian Financial Services Users (AURSF), the Association for the Counseling of Romanian Bank Customers and Insurance Policy Holders...  details
05.04.2017
     * Radu Hanga and Ana Bobircă, new members on the Board of SIF5 * Record quorum - 56.95%
       Tudor Ciurezu, together with four other candidates for the Board of Directors of SIF5 Oltenia, have won new four-year terms each, following the elections held in yesterday's General Shareholder...
  details
05.04.2017
THE CURRENT MANAGEMENT HAS RECEIVED A NEW TERM, IN JUST ONE VOTING ROUND
     * 93.86% votes in favor of Ceocea
       The elections for a new board of SIF Moldova yesterday went without unspectacularly, as the five board members of SIF2 who were in the running - Costel Ceocea, Horia Ciorcilă, Claudiu Doroș,...  details
04.04.2017
THE FIRST COMPLETED AUDIT, AFTER THE TAX INSPECTIONS IN THE BANKING SYSTEM
     * Inspections by the tax administration are ongoing in other Romanian banks as well
       The National Tax Administration (ANAF) has found, following the specialized inspections conducted in the banking system, that one of the banks that operates on the Romanian market owes the state...  details
.