EBRD financing in Romania to reduce in two yearsPublish date: 19-01-2007
The financing and investments made by the European Bank for Reconstruction and Development (EBRD) in Romania will reduce in the upcoming years, as the economic transition process is reaching its end, stated yesterday the director of the international institution’s office in Romania, Hildegard Gacek, occasioned by the signing of an agreement by which EBRD assigns EUR 10 M loan to Donasid Calarasi. “EBRD is usually present in countries undergoing transition. If EBRD role reduces, it means the transition is reaching the end,” Gacek mentioned. EBRD official thinks that the institution’s activity in Romania will still have a significant level in the following two years. “We will continue to involve in the financing of small and middle sized enterprises, while EBRD role in banking sector will begin to diminish, as there are also other financing sources,” Gacek said. The fields where EBRD will still assign financing are tourism and food industry.
EBRD, interested in CEC
Yet, EBRD officials showed they were ready to discuss with Romanian authorities the possibility of holding a minority share package in the National Savings Bank (CEC). In this affair, EBRD representatives stated they received no official request from the Romanian state. “We haven’t received any request from the Government yet. We are, however prepared to discuss,” Hildegard Gacek said. Being asked what would be the minimum package that EBRD might be interested in taking over, Gacek said the custom in banking field stipulates the purchasing of a share which might assure a blocking minority, namely 25 per cent of the capital plus one share at least. “International Finance Corporation and EBRD purchased 25 per cent plus two shares in BCR. There is no point in taking, for example, 6-7 per cent,” Gacek explained. Until then, EBRD intends to issue this year RON 100 M bonds, but it hasn’t established yet the market where the bonds will be launched, nor their characteristics, EBRD director for Romania stated.
EUR 10 m EBRD financing for Donasid Calarasi
EBRD signed yesterday an agreement by which it assigned EUR 10 M credit to pipe producer Donasid Calarasi, in view of financing the increase in the company’s production capacity. The credit will cover mainly the technical modernisation, which will contribute in increasing the basic production capacity, namely billet, from the current 300,000 tons a year to the maximum potential of 450,000 tons. The billet produced and sold by the company is used for producing steel pipes without welding, reads EBRD communiqué. Donasid was established in 2003, and in 2005 was purchased by Tenaris, one of the main important companies in steel pipes with no welding production and services for oil and gas industry. Also, Tenaris company will invest in the coming two years up to USD 20 M in Donasid Calarasi plant, stated Bassetti. “The value of investment will be decided in May, when we establish the budget. The sum, which might range between USD 16 M and 20 M, as well as the money destination depend on a series of factors, among them the price of energy and of raw material,” said the executive vice-president of Tenaris Romania.
Airbag production for foreign market
Tenaris Silcotub company will start in March the production of airbags at Zalau, the total investment reaching USD 4 M, Paolo Bassetti stated. “The airbags will be destined, in a first stage, to the foreign market. At international level, Tenaris already produces airbags and holds collaboration contracts will several automotive producers, Bassetti mentioned.
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