Talent: Gina Turliu, client service director of Cougar, says she plans to double the turnover of the ad agency she is managing, and to eventually enter the ATL segment, while stepping up the efforts to expand the portfolio of clients »page 9
ROMANIA’S PREMIERE BUSINESS WEEKLY
April 4 - 10, 2011 / VOLUME 16, NUMBER 11
ACCESS ALL AREAS? It seems that Romania is no country for the disabled as solutions proposed by the state following EU pressure only look good on paper. In reality, the challenges of living with a disability go far beyond the expected appearances to even more difficulties. »pages 16-17 NEWS
INTERVIEW
LINKS
Paying taxes online Medical rebranding
Recession proof?
The Ministry of Communications has launched a national online system allowing for tax payment via bank card » page 3
The IT industry has seen fewer redundancies than other sectors and the downturn impact on salaries was low » page 14-15
Fady Chreih, executive director of Regina Maria, says the healthcare player looks into further acquisitions this year » page 13
PLUS The heights of Thai cuisine or just ‘beach tourist’ food? » page 20 NexT Film Festival prepares to welcome movie buffs » page 21
LITIGATION SEGMENT LAW FIRMS ACTIVE IN ROMANIA HAVE SEEN THEIR LITIGAT TION BUSINESS SKY-ROCKETING, FUELED BY A NEW ORDINANCE ON CREDIT AGREE MENTS AND NEW PENSION RULES »PAGES 10-12
www.business-review.ro Business Review | April 4 - 10, 2011
NEWS 3
NEWS in brief WEEK in numbers
75 million euro – he value of the loan taken out by Banca Comerciala Romana (BCR) from the European Bank for Investment (BEI) to finance SMEs
6.25 percent - the key interest rate set by the Central Bank, for the seventh meeting in a row
Photo: Laurentiu Obae
IMAGE of the week Equity and reform “The key to Romania’s future is building enduring institutions that under-gird your democracy and free markets, transparency, rule of law and predictability,” said US Ambassador to Romania Mark Gitenstein (pictured left, alongside Stere Farmache) at the opening of the trading session at the Bucharest Stock Exchange last week. The ambassador stressed the importance of continuing the reforms started in the early 90s to help attract further foreign investment, and highlighted the importance of equity markets. “Growth cannot happen without a reliable energy supply and supporting infrastructure, and the energy sector here will require significant amounts of new investment if the sector is to be a driver for, and not a drag on, Romania’s recovery. Equity markets can play a critical role in attracting investment from here and abroad,” the ambassador said.
RETAIL Praktiker Romania sees sales fall 21.8 percent in 2010 Praktiker Romania has reported net sales of EUR 193.6 million in 2010, 21.8 percent lower than the previous year, due to the general economic climate and an overall decline in the DIY market. “In the two countries where we generate the highest sales, Greece and Romania, extensive fiscal measures including significant increases in value added tax meant that the available income and purchasing power of private households declined dramatically – with a corresponding impact on our sales and earnings,” reads the company’s annual report. Cutting costs was the priority for the
German retailer in 2010 and in Romania personnel expenses were reduced through sending staff on unpaid leave. Praktiker has a 6.4 percent market share in Romania and its main competitors are Dedeman (6.5 percent), Bricostore (4.6 percent) and Baumax (2.9 percent), according to the retailer’s data.
KFC opens 40th local outlet in Braila with EUR 300,000 Fast food network KFC will open its 40th unit on the local market in Braila, following a EUR 300,000 investment. The outlet, which is expected to bring in EUR 1 million in sales, is the first in the town and is in the Promenada Mall. The location is the first to be opened in 2011, out of a total of ten planned for this year. By the end of 2011, KFC should have a network of 50 eateries in Romania.
ONLINE Ministry of Communications launches national online tax payments The Ministry of Communications has launched Ghiseul.ro, a national system of online electronic payment of taxes via bank card. The system was first launched in two cities: Targu-Mures and Bucharest’s sectors 2 and 6. Romanians can acquire via Ghiseul.ro internet domains with the .ro extension from the National Institute of Research and Development in Informatics. The project, which the Ministry started last year, was supported by the Association for Electronic Payments in Romania. “We believe that accessing this service online benefits not only our clients but
399 USD – the price at which Romania imported 1,000 cubic meters of natural gas in January of this year, the highest level since March 2009, according to data from the National Regulatory Agency in Energy (ANRE) also all Romanian citizens and also the local administrations,” said Adrian Apolzan, president of APERO. “Many Romanians abroad were forced to come to Romania to pay their taxes. Also, a person who had an apartment in Bucharest and another one in, say, Sighisoara had to go to both places, which are very far apart, in order to pay the same taxes.” Ghiseul.ro will be expanded to more local administrations and by 2012 all local administrations will be covered. The first stage will include cities with over 150,000 inhabitants, the second will cover those with up to 150,000 inhabitants, while within six months the system will be extended to include the remaining places and public institutions.
HEALTHCARE Stem Sure expects 50 percent increase in turnover this year Stem cell harvesting company Stem Sure recorded 350 harvests in Q4 last year, which translates to a turnover of EUR 350,000 for the period. Throughout the whole of 2010, the firm’s total turnover reached slightly over EUR 1 million, said company officials. In 2011, Stem Sure is aiming to exceed last year’s turnover by 50 percent, to reach EUR 1.5 million. Stem Sure currently partners Denmark-based company Stem Care. It was authorized in Romania in 2009.
www.business-review.ro Business Review | April 4 - 10, 2011
4 NEWS
NEWS in brief PROPERTY & INFRASTRUCTURE EC approves EUR 127.5 mln financing to upgrade DN6 Alexandria-Craiova national road The European Commission has approved a EUR 127.5 million financing line from the European Fund for Regional Development to repair the DN6 AlexandriaCraiova national road, according to the Transport Ministry. The works are expected to reduce the number of accidents on the route by 20 percent, and cut the average travel time between the two cities by 47 minutes. The National Highways and National Roads Company awarded three contracts to overhaul the DN6 in January, with works financed 69.25 percent by European funding. The first segment, 42.2 km in length, was awarded to Israeli company Saphir Structures. The value of the contract was RON 140.6 million, out of which RON 96.9 million was non-refundable financing. The second part of the road works was won by RomstradeEzentis-Euroconstruct Trading. The value of the contract for this 52.8 km section was RON 119.3 million, out of which RON 82.2 million was non-refundable financing. The third part was won by Secol SPASecol Romania. The segment length is 36.9 km, while the value of the contract is RON 136.5 million, with RON 94.1 million non-refundable financing.
Be Igloo takes over sales of Evocasa Selecta project Be Igloo has taken over sales for the residential project Evocasa Selecta, the only luxury project developed by Adama in Romania. Located in downtown Bucharest in the Foisorul de Foc area, the scheme required a EUR 16 million investment, and is 60 percent sold. Be Igloo expects to sell the rest of the flats by the end of the year. The building has 77 two-, three- and four- room apartments on 10 floors, and commercial spaces available on the ground floor and first story. Prices of the apartments, which have surfaces of between 64 sqm and 230 sqm, start from over EUR 85,000 and go to almost EUR 280,000.
King Sturge: Build-to-suit schemes to lead industrial and logistics market in 2011 Build-to-suit schemes are expected to be paramount on the industrial and logistics market, according to a survey by King Sturge. “For Romania, we believe that new developments of industrial and logistics units in 2011 will still be dominated by build-to-suit schemes, due to financing constraints and new developments limited to pre-lets rather than building speculatively. Rental levels will remain at EUR 4.0-4.25/sqm per month and the vacancy rate will drop slightly from 15 percent to 14 percent, as besides pre-let transactions, the trend for take-up will fa-
vor relocations over expansion. Modern stock in Bucharest will reach 1 million sqm in 2011,” said Irina Iliescu, senior industrial negotiator for King Sturge Romania. In Central Europe, prime yields saw some downward movement in the second half of 2010. Prime logistics yields in Warsaw, Prague and Bratislava fell by 25, 50 and 75 basis points respectively over the year to stand at 8.25 percent at the year-end. Over 2010 the gap between prime yields and poorer quality secondary yields increased significantly as demand for secondary assets increased more slowly than for prime assets. “Demand in the market will be represented by a few new market entries, most of them coming from the automotive and electronics industry, together with their suppliers and third party logistics. Appetite will also come from owner occupiers looking to buy industrial land on the A1 highway and in the proximity of Bucharest – considering the price for prime land has dropped by 40 percent since 2009,” she added.
MEDIA Adevarul Holding and Dinu Patriciu Foundation relaunch Stiinta & Tehnica magazine A monthly science magazine that dates back almost a century, Stiinta & Tehnica, has been relaunched by educational NGO the Dinu Patriciu Foundation with the support of multimedia company Adevarul Holding. The financial investment in the 120-page magazine is EUR 500,000 per year and the circulation is 15,000 copies per month. Businessman Dinu Patriciu, owner of Adevarul Holding, said he was continuing to invest in the press, which has been hit hard by the financial crisis, because the domain continues to grow. He gave the example of paid-for online content in Great Britain. He predicted that the print press will not disappear, but will become more and more specialized and niche-oriented, as is the case with projects by the company he owns. Patriciu also cited the importance of science and interdisciplinary research in business development, naming a major energy project developed in the Black Sea. He added that Stiinta & Tehnica magazine was necessary on the local market to raise interest in science in Romania and improve communication between specialists. Tincuta Baltag, general manager of the Dinu Patriciu Foundation, also noted recent worrying statistics putting Romanians last in general knowledge tests among fellow Europeans. She said that there is a general need to raise Romanians’ appetite for culture and information. Baltag added that although the magazine is not expected to make profit, it is a longterm project. The editor-in-chief of Stiinta & Tehnica, Marc Ulieriu, said that the magazine would focus on the younger, so-called Facebook generations. “Stiinta & Tehnica aims to become a magazine coagulat-
ing the largest community of young people passionate about science in Romania,” he added. The title will be developed both online and offline and will also be involved in scientific events, expeditions and invention fairs.
Realitatea Media administration board to end Sebastian Ghita’s contract The administration board of Realitatea Media will review the management contract of Sebastian Ghita, the owner of Asesoft, according to daily Evenimentul Zilei. Rumors of tensions between Ghita and the owner of the media group, Sorin Ovidiu Vantu, made headlines last week. The board decided to replace the editorial manager, Catalin Popa, and the editorial-in-chief of the news department, Madalina Dulama. On March 27, Vantu tried to throw Ghita out of the building. “Sorin Ovidiu Vantu came to Realitatea TV this afternoon with a new administrator and a new security company. He intends to replace manager Sebastian Ghita,” said sources in the Realitatea Media group, quoted by Evenimentul Zilei. Sources have blamed the ruction on Ghita’s alleged attempts to limit Vantu’s influence on Realitatea TV’s editorial policy.
FINANCING EIB lends EUR 75 million to BCR for SME financing Banca Comerciala Romana (BCR) has signed a new EUR 75 million loan agreement for financing SMEs, mid-caps and public sector projects with the European Investment Bank (EIB). The sum is a second tranche which brings to EUR 150 million the total loans for SMEs between EIB and BCR since 2009. Financing from EIB funds is available to various beneficiaries: SMEs, small mid-caps and public sector authorities looking to develop projects in sectors such as industry, tourism, services and agriculture; plus large mid-caps looking to finance up to 50 percent of eligible project expenditure amounting to more than EUR 25 million and up to EUR 50 million. BCR is currently the financial intermediary for two EIB facilities: the EIB Intermediated Loan (contracted in November 2006) amounting to EUR 50 million, through which over 100 projects developed by small and middle sized enterprises in Romania have already been financed; sand the EIB Loan for SME contracted in December 2009, amounting to EUR 75 million, from which over 80 projects by SMEs in Romania have been funded.
TAXES Tax reform association launched The Association for the Reform of the Tax System (ARSIT) was launched last week in Romania. The not-for profit, non-governmental association was established at
the end of 2010 by 34 founding members, high-profile Romanian entrepreneurs and representatives of the liberal professions. Catalin Dima is the president of the association, Dan Pascariu serves as VP, Marian Nastase as VP for corporations, Catalin Zamfirescu as VP for the liberal professions, Crina Sinescu as VP for individuals, Lucian Alexe as VP for SMEs and Valentin Ionescu as VP for NGO relations. ARSIT is promoting the reform of the fiscal administration system in Romania, the improvement of services offered to taxpayers, and an increase in the transparency of public institutions about tax establishment and use.
INSURANCE Generali Asigurari reports 13 percent lower gross subscribed premiums for 2010 Generali Asigurari has reported a volume of gross subscribed premiums of RON 440 million for 2010, 13 percent less than the previous year. The general insurance segment dropped by 17 percent (RON 349 million) while the life insurance segment went up by 8 percent (RON 91 million). “In 2011 we will continue to develop the life insurance segment but we will also support new business lines that show development potential – home, travel, corporate and property damage insurance,” said Marie Kovarova, general director of Generali Asigurari.
MACRO Central Bank keeps key interest rate at 6.25 percent The administration board of the Romanian National Bank chose last week to keep the interest rate constant, at 6.25 percent. It also decided in favor of the appropriate management of liquidity in the banking system. The Central Bank’s management further moved to reduce the minimum mandatory reserve requirement in foreign currency with residual maturity of less than two years for credit institutions to 20 percent, a cut of 5 percentage points, starting April 24 to May 23.
AUTO Renault chooses Romania for new engines production Renault announced that it has decided to build in Romania a new series of engines on gasoline starting 2012 or 2013. The French carmaker choose Romania over a French plant, where 200 to 400 people will be laid off due to this decision. Yet, the French company says that the decision is not about shifting locations and adds that new engines that will be built in Romania and Spain do not compete with the current generation. Renault will build in Romania a new small engine generation named H4, while in Spain it will build H5 engines.
6 NEWS
www.business-review.ro Business Review | April 4 - 10, 2011
FINANCING
TELECOM
Romtelecom IMF OKs new EUR 3.5 bln precautionary acquires stand-by agreement for Romania AKTA Satelit
STOCKEXCHANGE
Courtesy of DCS
Dinu Malacopol, CEO of DCS
R
T
he executive board of the International Monetary Fund (IMF) has approved a new one-year precau-
tionary stand-by arrangement (SBA) for Romania of about EUR 3.5 billion, which will come into effect at the end of this
PROPERTY
BANKING
Volksbank seeks BNP Paribas launches property management services in Romania EUR 1 mln in damages from government
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Photo: Laurentiu Obae
omtelecom has taken over the assets and direct-to-home services customer base of AKTA Satelit, the residential division of Digital Cable Systems (DCS). The price of the transaction will be settled based on the number of clients who enter Romtelecom’s portfolio following the takeover. The firm could acquire 80,000 customers from AKTA. Romtelecom has notified the Competition Council of the takeover and the company will gain the new clients if the council gives its approval, according to an official statement by the firm. Digital Cable Systems was founded in 2005 and comprises two divisions: the AKTA division for residential consumers and Dial Telecom, for business customers. Last year, DCS’s Romanian turnover was estimated at EUR 34 million, 15 percent more than in the previous year. Recently, DCS finalized the process of enlarging the bandwidth for internet access for subscribers of AKTA Division. The project was implemented on a national scale over the course of one year and was made using an investment of EUR 3 million. “According to a recent study, the ratio of internet users in Romania has increased tenfold, from 3.6 percent in 2000 up to 35.5 percent in 2010 in the urban areas. However, there are differences between the urban, small-urban and rural environment, which will lead to the growth of the market. We are confident in the chances of evolution of the rural areas over the next 3-5 years so that the gaps among the three areas will become less significant,” says Dinu Malacopol, CEO of DCS. Internet services represent more than 25 percent of the total revenues of the AKTA division. . ∫ Otilia Haraga
Romania is set to receive EUR 3.5 billion under the new precautionary arrangement
month. The Romanian authorities have informed the IMF that they intend to treat the new arrangement as precautionary and therefore do not plan to draw under it. The SBA will come in conjunction with precautionary support from the European Union of EUR 1.4 billion and a EUR 400 million loan from the World Bank. The executive board has also completed the seventh and final review of Romania’s economic performance under special drawing rights of about EUR 12.95 billion. The 24-month SBA was approved on May 4, 2009, and will end on March 30, 2011, at the authorities’ request. The completion of the final review allows the immediate disbursement of EUR 1 billion in special drawing rights. The authorities have informed the IMF that they also intend to treat this final disbursement as precautionary. ∫ Dana Verdes
America House is one of the buildings in the firm’s portfolio
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NP Paribas Real Estate Romania has launched its property management services locally. This joins the transaction, consulting and valuation services the firm already offers in Romania. The move comes after the 2010 acquisition by the firm’s international property management business of the property management subsidiaries of AEW Europe (PBW Polska, PBW Hungary and PBW Czech Republic). “The difficulties the Romanian real estate market has encountered in the last two years have accelerated the steps
towards a more mature market. Experienced professionals are able to assist landlords in managing their properties and providing increased added value for tenants, a process that has become more and more complex under the current circumstances,” said Philippe Mer, chairman of the board of directors at BNP Paribas Real Estate Romania. The firm has two buildings in its portfolio, America House in Bucharest and Promenada Mall in Targu Mures, and manages a total of 78,000 sqm. ∫ Staff
Volksbank Romania is suing the government and the national authority for consumer protection, claiming EUR 1 million in damages. Bank officials say the claim is justified in view of the damages the bank incurred through the emergency ordinance 50/2010 on consumer credit. Volksbank Romania went to court last year to ask for the suspension of the ordinance, but the Bucharest Appeal Court dismissed the claim as ungrounded. After the ruling, the bank submitted to the same court its request for damages from the state. According to legal sources, quoted by media reports, the sum does not represent the total value of the bank’s claims, but it summarizes the losses incurred up to that moment. The ordinance stipulated, among other things, the elimination of anticipated reimbursement commission for credits with a flexible interest rate, the calculation of the interest rate on a transparent reference index and the limitation of banks’ commissions to four. Emergency ordinance 50/2010 was implemented in June last year. ∫ Dana Verdes
NEWS 7
www.business-review.ro Business Review | April 4 - 10, 2011
TELECOM
EMPLOYMENT
Deutsche Telekom and France Telecom consider merging Romanian networks to save costs
Over 10,200 jobs available nationally
STOCKEXCHANGE
The two telecom companies are said to consider merging their networks in Romania
D
eutsche Telekom and France Telecom are considering merging their networks in Romania in order to reduce maintenance costs, according to
German newspaper Handelsblatt, which quotes sources from the top management at France Telecom. The two telecom giants used the same
tactic in Great Britain. They are thinking about sharing certain equipment that forms part of their mobile networks in Poland and are analyzing whether such a move would be feasible in other states such as Austria, Romania and Slovakia, a spokesperson for the France Telecom group later confirmed. “At this point the concerned parties are examining the matter in terms of the opportunity and the types of future synergies that will take place between them,” Madalina Suceveanu, CTO of Orange Romania, told newswire Mediafax. She added that Orange Romania had previously collaborated with other players on the local market over technical aspects. “The first steps were taken several years ago by using common telecommunication infrastructure in certain parts of the network such as the colocation of antennas. It involved collaborations with Vodafone Romania and Cosmote Romania,” said Suceveanu. Orange, part of France Telecom, is the largest operator in Romania at the moment. Deutsche Telekom owns a 30 percent stake in Greek group OTE, which runs Romtelecom and Cosmote on the local market. ∫ Otilia Haraga
A
pril has begun well for the local labor market, as the National Agency for Employment (Agentia Nationala pentru Ocuparea Fortei de Munca, ANOFM) has announced the availability of over 10,200 jobs nationwide, between April 1 and 7. The places with the most available positions are Bucharest, followed by the counties Cluj, Iasi, Hunedoara, Bihor, Vaslui, Timis, Sibiu, Tulcea and Mures. The counties with the fewest vacancies are Caras-Severin (13), Dolj (20), Giurgiu (61), Salaj (76), Mehedinti (79), Alba (91), Covasna (93), Calaraşi (104) and Braila (106). On the other hand, Bucharest has 1,177 positions available, Cluj, 579, Iasi, 551, Hundeoara 505, Bihor, 489, Vaslui, 458, Timiş, 435, Sibiu, 331, Tulcea, 324 and Mures 298. On a national level, the positions available for those with superior studies reach 612, most of which are for engineers and sub-engineers, store directors, commercial assistants, project managers, pharmacists and professional training instructors. Those who do not have superior studies may seek positions in the textile industry, among other fields, but this is where the most posts are available. More information is available on the National Agency for Employment’s website. ∫ Corina Dumitrescu
www.business-review.ro Business Review | April 4 - 10, 2011
8 NEWS FINANCING
INFRASTRUCTURE
Foreign capital inflows make CEE comeback, finds Erste Group report
Bucharest Henri Coanda airport opens new EUR 60 mln terminal
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010 saw a reversal of capital inflows into CEE countries, according to a report released by Erste Group which says that foreign direct investments have started rebounding in CEE. The Czech Republic is the most notable country in the region with FDI inflows more than double the levels recorded in 2010. The report adds that current account deficits have shrunk considerably in Hungary and Romania and less external financing is needed. “After a deep slump in 2009 (-45 percent y-o-y), foreign direct investments have started to pick up (about 9 percent y-o-y). We’re seeing the most encouraging development in the Czech Republic, where FDI inflows more than doubled in 2010, making them the highest in the region,” said Juraj Kotian, co-head of CEE macro research at Erste Group. The report also praises Romania’s progress in its dealings with the IMF, stating: “The recent decision to replace the expiring IMF stand-by program in Romania with just a Precautionary Stand-By Arrangement (drawing funds is not expected) and not extend the previous program demonstrates the progress Romania has made.” Kotian added, “Both Hungary and Romania narrowed their current account deficits substantially and thus reduced their external financing needs to levels which can be smoothly financed on markets.”
Moreover, Romania expects a return of FDI inflows in capital goods, agriculture and the food industry, found Erste Group analysts. “Before 2009, the main type of foreign capital inflows to Romania were FDI (mainly equity stakes, due to privatizations) and other investments (cross-border loans and funding from parent banks), while portfolio investments have traditionally been low,” said Eugen Sinca, of Banca Comerciala Romana. “After the onset of the global financial crisis, FDI inflows diminished, in spite of the fact that Romania remained an attractive business destination. Labor productivity in manufacturing increased by more than 12 percent in both 2009 and 2010 and real wage growth slowed down.” He added, “The stand-by arrangement with the IMF and EU substituted for some of the private capital inflows to Romania and provided necessary time for the implementation of reforms and narrowing of the current account and budget deficit. As the global economy recovers from recession, Romania is likely to benefit again from FDI inflows in areas like the capital goods industry, agriculture and the food industry, IT&C services and renewable energy, while the narrowed current account deficit has reduced Romania’s external vulnerability in the future.” Corina Dumitrescu
T
he Henri Coanda airport in Bucharest has inaugurated a new terminal, part of the third stage of its upgrading program. Construction works were started in August 2009, and the value of the investment stands at EUR 60 million. The financing is coming from the airport’s own budget and internal loans to be paid back by the airport. The new terminal was designed to
WHO’S NEWS
meet the traffic requirements imposed by Romania’s accession to the Schengen space. The number of boarding and arrival gates has increased from 5 to 14, while the new built surface amounts to 16,000 sqm. The new terminal will be able to accommodate 6 million passengers per year, up from 4.5 million currently. ∫ Staff
Business Review welcomes information for Who’s News from readers. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
Marc Carena has joined Metro Cash & Carry Romania as customer management director. He is taking over from Claude Sarrailh. Carena was a member of the European executive committee as regional business manager at Nestle Professional, heading the B2B divisions for South Europe (Portugal, Spain, Italy, the Former Yugoslavia, Bulgaria, Greece, Cyprus and Malta). Sarrailh has taken over the position of procurement & merchandizing director for non-food at Metro Cash & Carry Russia.
Gianfranco Bisagni (52), has been promoted to head of corporate & investment banking in ECE for UniCredit. Following this appointment, Marco Esposito (51) will be the new head of the corporate division of UniCredit Tiriac Bank. In his new position, Bisagni will be responsible for developing and coordinating the group’s corporate activities in Eastern and Central Europe. He began his career with UniCredit back in 1977. Since then, Bisagni has held various positions such as chief manager UniCredit Hong Kong branch & head of corporate banking Asia Pacific and other top management positions in UniCredit New York Branch and UniCredit Chicago Representative Office.Before joining UniCredit Tiriac Bank he led the corporate division of UniCredit Bulbank, the group’s Bulgarian subsidiary.
Razvan Iorgu has been appointed managing director of the Romanian office of CB Richard Ellis. Previously he was chief operation officer at the company. He is taking over from Radu Lucianu. Iorgu joined the firm in 2001, and has extensive experi-
ence in various sectors of the real estate market.
Franz Zinsberger (54), country manager of Boehringer Ingelheim, has been elected president of the Romanian Association of International Drug Manufacturers (ARPIM) for a twoyear term. He has over 30 years of professional experience in the field of pharmaceuticals. Zinsberger has been at the helm of the local subsidiary of Boehringer Ingelheim since 2008. He previously worked for ten years as sales directors for the company’s German subsidiary. The other members of the board of ARPIM are Radu Rasinar, country manager AstraZeneca; Regis Lhomme, country manager Amgen; Bojan Jagocic, country manager Novartis; Efthymios Papataxiarchis, country manager Johnson & Johnson; Pascal Prigent, country manager GlaxoSmithKline; and Luana Ionascu, country manager Ipsen.
Ugur Yesil has been appointed new General Manager for Kanal D Romania, effective April 1st. Part of the Kanal D team since 2006, Yesil has been promoted from his position of Chief Financial Officer (CFO) to General Manager. Ugur Yesil brings with him twelve years of experience in the field of financial and business management. He was previously employed by Erdemir Group in various functions, most recently as Finance Director of Erdemir Romania. He studied Business Administration and graduated from the University of Uludag in Turkey.
Gabriela Bordea has taken over as general manager of Tarom. She started working with the company in 1973 in sales and marketing. In between 1982 and 1985 she was representative of Tarom in Paris, and in between 1990 and 1996 she was the company’s representative in Brussels. Between 1999 and 2004, she represented Tarom in Tel Aviv. She worked as head of sales Romania with the airline from 2007 to 2009, and starting with 2009 she was appointed marketing and sales director of Tarom.
www.business-review.ro Business Review | April 4 - 10, 2011
TALENT 9
Cougar pounces in the advertising jungle Gina Turliu has two major objectives for Cougar on her agenda: to double the company’s turnover to EUR 1 million this year and enter on the ATL market in the long term. Meanwhile, she intends to enrich the agency’s portfolio of customers. ∫ ANDA SEBESI
anda.sebesi@business-review.ro
COMPANY PROFILE Cougar Publicitate Established: 2006 Number of employees: 12 2010 estimated turnover: EUR 500,000 2011 estimated turnover: EUR 1 million Offered services: BTL, merchandising, production and creation
Courtesy of Cougar
Gina Turliu, client service director of Cougar, decided to become an entrepreneur back in 2006 when she and her partners chose to set up an advertising agency. “Cougar was the result of a big challenge: to create a 100 percent Romanian advertising agency, meant to compete efficiently and successfully with the large merchandising and BTL agencies,” says Turliu. And it seems it was an attainable goal as Cougar has managed to create a wide portfolio of large customers such as Reckitt Benckiser (with Vanish, Calgon, Air Wick, Harpic, Cillit, Nurofen), Carrefour, Fonica Vodafone, Anchor Grup, Milli, Napolact, Dots, BCR, Cocor Department Store, Midocar, Granddis (with the Stolichnaya brand), Collier’s and Agrocosm. The beginning of Cougar’s story was a typical one for any start-up: some professionals with extensive experience in a specific field decided to take their first step in the entrepreneurial world. “We started with a small team of specialists that I personally knew very well because we had worked together on various projects. In a few words I can say that since the beginning we have benefitted from a team guided by several strong internal values: trust, professionalism and huge enthusiasm,” remembers the entrepreneur. And experience proved that these could be the main ingredients of a successful business. The main idea of Cougar was to create a competitive local agency that could hold its own against the well-known firms on the local market. “In order to do so, we focused on large clients because we were sure that our core of professionals could meet the needs of a brief from that type of customer,” says Turliu. But things didn’t stop here: in time the company diversified its portfolio of services and managed to put together a team of several professionals with significant expertise in the field. The idea to set up the business came as a natural step for the founders of the company, as they were veterans in the game. “All members of the management team had worked in advertising for many years, since the beginning of this industry on the local market,” says Turliu. Asked to identify the main challenge her business has faced, Turliu replies that each brief is a new challenge for the Cougar team. “I think that this is why we decided to start a business in this field of activity: you need to break some limits and barriers,” says the businesswoman. Plus the advertising industry is well known for its dynamism, and so it is very important for players on this market to be very flexible and pay attention to every detail. If she started another company she wouldn’t change anything. Why? Because her business has endured many difficult moments during its almost five years of ex-
istence and she has learned many things from them. “Each problem we faced or each success we enjoyed made their contribution to a more experienced, mature and organized team. That’s why I wouldn’t change anything,” she says. Turliu and her partners went into business back in 2006 on a very crowded market, with each player fighting for a significant market share at that time. But this didn’t frighten her as she persevered in developing a successful business in the industry. Plus, she looked on the bright side of the conditions: she wanted to prove that her company could impose itself on its market. “But things have changed a little bit since the current economic downturn, with many agencies giving up offering specialized services in this field. The remaining agencies have become more powerful,” adds the young entrepreneur. Asked what differentiates her company from the crowd, Turliu says Cougar has the benefit of an experimental team of specialists. “It is the most precious advantage and it is indeed a great achievement for us. Besides, we are one of the few agencies that achieve the same level of efficiency or sometimes even more with a smaller budget, compared with agencies affiliated to a network,” adds the client service director. Turliu says that the current economic crisis has not affected the company’s financial performance. “Fortunately, both in 2009 and 2010 our agency managed to post an increase in turnover and attract new customers to our portfolio despite the decline in the market,” she notes. But Cougar did feel some negative effects, especially in the first half of 2009, when all its customers became more reluctant and cautious about developing communication campaigns. “We got through this difficult period thanks to our flexibility and rapid response to our customers. We were open to negotiating the price of our services, keeping a real ratio between the service and its financial cost,” says Turliu. As for future plans, Turliu says she intends to attract new customers for her agency, especially on the merchandising side, on the short term. “Our long-term objective is to enter and develop on the ATL market segment,” says the businesswoman.
Gina Turliu says the agency she is heading has managed to get through the difficult economy of the past two years
www.business-review.ro Business Review |April 4 - 10, 2011
10 FOCUS
See you in court! Litigation levels leap up The sky-rocketing amount of litigation in which Romanian law firms were involved last year boosted their bottom line, with this area accounting for up to 40 percent of firms’ total turnover. Feeding the appetite for disputes were ordinance no 50/2010 on credit agreements and the revision of pension regulations, which made the front pages on various occasions last year. ∫ DANA VERDES
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“The litigation department had the greatest weight in the firm’s turnover, of about 38 percent, as it handled over 1,100 cases last year. The law firm registered a turnover of EUR 13.6 million in 2010,” Radu Damaschin, partner in the litigation department of NNDKP, told Business Review. The recession combined with the unclear legislation put forward by the authorities boosted the number of law suits settled in court. Companies’ figures support the hypothesis. Aurora Damcali, managing partner at Leaua &Asociatii, told BR that last year the number of disputes on which the firm worked – mostly from the commercial, construction and employment areas – increased by approximately 50 percent from the previous year. Christina Vladescu, associate lawyer at Tuca Zbarcea & Asociatii, told BR that in 2009, Tuca Zbarcea & Asociatii saw growth in number of litigation cases of some 70 percent compared to 2008. “This growth continued in 2010, when the practice group at Tuca Zbarcea & Asociatii handled over 1,300 litigation cases in all fields, primarily dealing with matters such as tax litigation, labor disputes, debt recovery procedures and insolvency,” said Vladescu. Meanwhile, Musat & Asociatii officials also say that the number of litigation cases has hiked recently. “In the last two years, our workload in dispute resolution files has seen an increase of 20 percent, mainly consisting of bankruptcy, criminal law, enforcements, employment litigation and insurance disputes. On the other hand, fields such as administrative litigation have stayed at the same level, while other segments have seen a decrease, such as land restitution court cases,” Gheorghe Buta, partner with Musat & Asociatii and head of the litigation & arbitration department, told Business Review. He added: “Overall, there is a clear positive trend on this market which will also continue in 2011.” Other law firms agree. According to Vladescu, “Strictly referring to the value of claims in the litigation and arbitration cases that are currently handled by our team’s lawyers, it exceeds EUR 500 million.”
Last year’s ordinance no 50/2010 regarding credits agreements lead to plenty of law cases, raw material for law firms
Law changes spur litigation growth One of the recent legislative amendments that have generated an increase in the litigation field is the enactment of the ordinance no 50/2010 regarding credit agreements, which has led to a series of law suits between banks and their clients, Buta said. The NNDKP official added that another piece of legislation that has prompted large scale litigation is property restitution laws. And government decision no. 735/2010 on the recalculation of pensions in accordance with the law on state military and police pensions, plus those of prison workers, has also expanded litigation, added the Tuca Zbarcea & Aso-
ciatii associate lawyer. “The government emergency ordinance no. 1/2011 concerning pensions for defense, law enforcement and national security workers has triggered a substantial number of court cases seeking annulment of the decisions to recalculate pensions. Last but not least law no. 118/2010 on measures to restore the budgetary balance has increased the amount of litigation in the past year,” added Vladescu. Peggy Suica-Neagu, partner and coordinator of the litigation department at White & Case, summed up, “Often legislative changes generally create litigation, since certain rights and/or obligations/liabilities born under former legal provi-
sions continue their existence/execution/effects under the new, modified legal provisions.”
The curious cases of Romanian law firms The range of case files handled by Romanian law firms go from arbitration and bankruptcy to public procurement and fiscal disputes together with common practice in commercial litigation and real estate. Musat & Asociatii is currently involved in more than 600 commercial, civil, criminal and administrative cases, at different judicial stages, with a total value amounting to EUR 3 billion. “Last year Musat & Asociatii was involved in
www.business-review.ro Business Review | April 4 - 10, 2011
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Christina Vladescu, senior associate Tuca Zbarcea & Asociatii
Radu Damaschin, partner NNDKP
Aurora Damcali, managing partner Leaua & Asociatii
Gheorghe Buta, partner Musat & Asociatii
high-profile litigation, such as representing Rompetrol in a major dispute against the Romanian state, in the context of the upcoming repayment by Rompetrol of a historical debt of EUR 570 million. The Rompetrol mandate is one of the most complex disputes in which we have assisted, considering its value and the parties involved,” said Buta. He added that Musat & Asociatii is representing one of the biggest pharma producers in the insolvency proceeding initiated against a Romanian distributor of pharmaceutical products, to recover commercial debts amounting EUR 83 million. Aurora Damcali, managing partner at Leaua & Asociatii, told Business Re-
view that her law firm had obtained an unusual solution from the Romanian courts for the first time, concerning the possibility of repealing legal judgment decisions that are the result of a simulated trial. “In traditional practice, the ‘simulation’ of a legal situation was considered to be specific to contracts. However when the parties attempt to avoid a contract, hiding it under the semblance of a trial, with the very aim of involving a court of law to make the transaction look like a trial, it is still simulation,” said Damcali. She expanded: “For example, when the parties, instead of concluding a salepurchase deed, which cannot be concluded because the estate is in dispute
with another person who demands the property, make only a promise, and subsequently ask the court to rule in lieu of a sale-purchase deed. In court, the defendant does not defend him or herself, but actually hopes to have the sale approved, in order to be rid of the dispute it had concerning the estate.” Leaua & Asociatii successfully argued before the High Court of Cassation and Justice that a claim declaring the fictitious trial null and void is admissible, and the court threw out the agreement between the parties as it had been hidden under the semblance of a legal judgment decision. Lawsuits of vast proportions resulting from differing points of view on the ap-
plication and interpretation of legislation concerning consumer loan protection are, of course, one particularly interesting project, said the NNDKP representative. “The origins of these disputes can be traced back to complex matters such as legal inconsistency, the effects of the economic crisis, the relevant public authorities’ overzealousness and borrowers being misguided in unreasonable hopes,” said Damaschin.
Insolvency for some, solvency for others Due to the economic climate, the cases of insolvency, bankruptcy and legal restructuring have become signifi-
www.business-review.ro Business Review | April 4 - 10, 2011
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A major impediment for lawyers is the high workload level of Romanian courts
cantly more frequent, reaching 20-25 percent of Musat & Asociatii’s litigation portfolio. And specialists say there is
more than meets the eye to bankruptcy. “Bankruptcy proceedings are less of a judicial dispute and more of a collective
proceeding in which the creditors’ goal is to maximize the recovery of their claims against the debtor. It is not uncommon that one ends up involved in a bankruptcy without necessarily having intended to trigger such proceedings,” said Damian. From this broader perspective, insolvency cases account for 25 percent of NNDKP’s litigation practice. Also, lawyers say that there are two ways to initiate insolvency proceedings. Creditors may demand the commencement of this procedure when their debtors cannot pay. And debtors can apply voluntarily for insolvency if they cannot make their repayments. “The second way was not very common until two-three years ago. I noticed that the benefits conferred by the law on insolvency, within the procedure of reorganization, made companies take this opportunity more often. The main advantages are the freeze in penalties on the date when the procedure begins, which means that once insolvency is declared by the courts, penalties are no longer based on the outstanding payable amounts and
FACTS AND FIGURES Tuca Zbarcea & Asociatii Turnover 2010 EUR 22.4* million Share of litigation in turnover 20 percent NNDKP Turnover 2010 EUR 13.6** million Share of litigation in turnover 38 percent Musat & Asociatii Turnover 2010 EUR 10.1 million Share of litigation in turnover 35 percent * The figure does not include income generated by the firm’s Cluj-Napoca office or the revenues obtained by the firm’s separate insolvency and intellectual property units ** NNDKP’s cumulated revenues for 2010 including the law firm (EUR 13.6 mln turnover in 2010) and the specialized tax and IP divisions reached EUR 15.7 million.
Source: Law firms the option to pay debts in installments, according to a reorganization plan, is more viable,” said Damcali. The share of the insolvency cases taken on by Leaua & Associates is up to 10 percent of its entire handled disputes. The law firm reported a turnover of EUR 5.3 million last year.
Snags for litigators The White & Case official says that some of the main issues lawyers are confronted with in litigation include “the lack of judicial infrastructure resulting in long delays granted by the courts until the first hearing, as well as delays between the hearings, the lack of unified practice in similar/connected issues of law or abundant and instable pieces of applicable legislation.” Moreover, judges are being flooded with an overwhelming number of cases which presents another difficulty for litigators, the NNDKP representative said. “As law no. 202/2010 on the acceleration of judicial proceedings has only solved a limited proportion of the issues, there are still courts that have to deal with more than 100 cases per session. In this environment, hearings tend to become a mere formality in the process,” said Damaschin. The Musat & Asociatii representative also bemoaned the unpredictability and instability of the legal framework. “This combined with the Constitutional Court’s decision to invalidate some of the legislative solutions proposed by Law no 221/2009 on the compensation for political convictions it is a clear example in this respect,” said Buta. He added that lawyers have restricted access to court files, even though the IT system which registers all the files, official documents and information related to the case in the courts, prosecutor offices and Ministry of Justice (ECRIS) should allow them to study the files at home or in the office.
www.business-review.ro Business Review | April 4 - 10, 2011
INTERVIEW 13 in the textbook situation when the organization had grown to the point where it needed a new identity. For the rebranding we worked with Marks and for PR with the Rogalski Grigoriu agency. How has the private healthcare market evolved since the beginning of the crisis and what do you think will be the outcome of 2011? I see the market going up by approximately 15 percent in 2011. In 2009 and 2010 all players made major investments and this was reflected in the market. The situation of the public healthcare system also started worsening in 2009, automatically driving more and more patients to private providers. Both in 2009 and 2010 the market grew by more than 25 percent. The impact of the crisis was less felt in 2009. In 2011 I see a more moderate growth mainly due to the cash flow from the National Health Insurance House.
Photo: Laurentiu Obae
Regina Maria hopes to checkmate competition after rebranding Last month, Centrul Medical Unirea (CMU) and Euroclinic were rebranded as Regina Maria (Queen Mary), The Private Healthcare Network. The change was a natural step and has a strong strategic component, the company says. In 2011 Regina Maria plans to focus on further expanding as well as consolidating its position on the market. Fady Chreih, executive director of Regina Maria, told Business Review that the firm is considering buying two more local players this year, with funds from an overall EUR 30 million investment budget for 2011. ∫ SIMONA BAZAVAN Why “Regina Maria” and why several months after the takeover of Euroclinic? 2010 brought a few very important milestones for our company. At the beginning of the year there was the acquisition by Advent of 80 percent of CMU. In December there was the Competition Council’s approval of the takeover of Euroclinic. Realizing that we were talking about an organization with over 1,000 full- and part-time doctors which is, overall, the largest private healthcare network in terms of the number of polyclinics, hospitals and services provided, we realized that we needed a new name. CMU was a brand with 15 years’ experience behind it and Euroclinic was a brand directly linked to private hospitals, so we couldn’t pick
one of the two names, but needed a new one. Why Regina Maria? Because we received the approval of the royal house for this name which stands for the personality of Her Majesty Queen Mary and all she has done for the Romanian people. And it represents us as an organization, mixing medical performance with a strong humanitarian dimension. What were the costs of the rebranding process? We are talking about several hundred thousand Euros. This includes the rebranding, changing the logo and the promotional campaign. The whole process was very thorough. We found ourselves
What can you tell us about the results posted by CMU in 2010? 2010 was a very good year for us from all perspectives – from the Competition Council’s approval of the fusion with Euroclinic, to consolidating the investments we have nationally, in Constanta, Cluj and Bacau, starting the project in Brasov last year and finishing it this January as well as our projects in Bucharest. Both medically and financially we surpassed our targets. In 2011 we will carry on with our new brand and several new investments. We will consolidate our position on the polyclinic segment in Bucharest by opening two new locations, in Militari and Berceni, thereby covering the capital almost entirely. Other investments in Bucharest and around the country will surely follow. We plan to further focus on the hospital segment although we already have five units in our network and we will open a sixth. What is Regina Maria’s investment budget for 2011? We have invested EUR 4 million so far in the medical campus in Brasov and another EUR 12 million is for the other projects I mentioned. All in all we have roughly EUR 30 million this year for organic growth and perhaps some more acquisitions. Are you specifically targeting acquisitions or rather organic growth? A combination of the two. We have a reached a certain level, and our present network allows us to offer our patients all the necessary healthcare services. So a potential acquisition in the country would have to be a very interesting one for us to pursue it. We have received several propositions and we are analyzing the details. What I can tell you is that there are currently two local players we are considering, one in western Romania and one in the central-north part of the country. These are providers who have reached a certain development level and realize that in order to continue growing they need the support of a national network. At the same time we are in no hurry and we want to be sure of the quality of the medical services we provide. What was the company’s turnover last year and what are your expectations for 2011? Both CMU and Euroclinic saw a turnover
increase of over 20 percent last year and we continue to be on a very good trend. As I said, this year I see the private medical services market going up by approximately 15 percent. Of course there will be those of us who manage to post growth above this average and those who fall behind, but overall the market will continue its consolidation process. For Regina Maria we estimate another double digit turnover increase. There will also be medium-sized and smaller players on the market for which 2011 will be a challenging year. Where do you see these challenges coming from? There are three main issues. First of all, only a few of us have the necessary resources to continue investing in doctors, technologies and networks. The rest will simply not have the means to keep up with this. Secondly, as in 2010, this year we will also see cash flow problems for the private healthcare providers who depend too much on money from the National Health Insurance House. And thirdly, there is the issue of the Romanian patient who now expects certain standards. It is high time for this industry to show maturity. I expect that low quality services will disappear as their time is gone. How has the behavior of the private medical services consumer changed over the past couple of years? What makes Romanians chose one provider over another? When it comes to private healthcare services, the Romanian patient has changed quite a lot. We are talking about people who are much more informed about their medical needs and more demanding than a few years ago, now that they have experienced the difference between the public system and private healthcare providers. Among our subscribers we have also noticed higher interest in prevention after we ran a series of programs in this area. There are still patients who go to medical centers abroad but we expect this to change in our favor. Do you intend to develop and add new medical specializations to Regina Maria’s current portfolio? This year we have consolidated our position both in Bucharest and around the country. We are looking at two or three new regions but other than this we are planning strong development in the hospital specialization area. We will continue to grow our existing specializations and we have some clear targets as far as the quality of medical services is concerned, but we also have a large number of projects in hospital specializations and we will continue to be innovative. We hope to announce the first complex medical interventions in the private system very soon.
simona.bazavan@business-review.ro
CV Fady Chreih 2010 Executie director of Regina Maria the private healthcare network August 2007 Head of healthcare division at Banca Transilvania January 2007 Deputy head of SME division of Banca Transilvania.
14 LINKS
www.business-review.ro Business Review | April 4 - 10, 2011
Plenty more fish in the IT sea While parts of the local economy are sinking under the pressure of the financial crunch, the IT branch seems like an island in a stormy sea. Not only have there been fewer redundancies, but the impact of the downturn on salaries was low. The software industry has always seen lively recruiting, and this trend has remained constant even during the crisis. Salaries in the industry are sure to rise this year, but will not reach double digit growth. ∫ OTILIA HARAGA
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The average salary growth last year was 5.9 percent, according to the PayWell 2010 study, whose respondents were companies in the IT sector, including those who did not intend to raise pay. In 2011, the salary growth forecast for the IT sector is 7.9 percent, Horatiu Cocheci, manager for HR Services at PwC, tells BR. Still according to the PayWell study, the net monthly average salary of a junior software developer is EUR 750, while a senior software developer makes EUR 1,650. The net average monthly salary in IT management can range between EUR 1,700 and EUR 2,200. “Last year we witnessed a discrepancy between the expectations of IT specialists and employers’ tendency to optimize payment costs. Overall, the level of salaries remained relatively constant and the demand for specialists stayed high,” Ariadna Diaconu, professional placement consultant at Manpower Professional, tells BR. The results of the Manpower study, The Employment Outlook, for the second quarter of 2011 show a positive trend of +5 percent at national level, which means that “employers are anticipating a surge in demand for specialists,” she adds. Salaries in Romania have soared over the past few years. “I would say on average, in Western countries one can earn from 2.5 to 3 times as much as in Romania in the same position. Ten years ago, the gap was much greater – eight or even ten times,” Serban Mrejeriu, human resources consultant at AIMS Human Capital Romania, tells BR. To avoid the loss of personnel and to attract new talent, companies have had to keep salaries attractive. “Of course, we are talking here about positions that require specialization,” Cacina Monica, marketing specialist at BestJobs Recrutare, tells BR. Employees working in entry-level positions and in jobs in small companies, such as IT administrators, are more vulnerable to replacement. Data from BestJobs shows that a software developer can cash in between EUR 500 and EUR 2,500. Senior software developers earn between EUR 1,000 and EUR 3,500, depending on the size of the company and the location. As the upper end, there are positions of this type that can be paid in excess of EUR 5,000. A project manager can start on EUR 1,500 if working in a small company or in cities outside the capital, but the remuneration can go as high as EUR 7,500.
Salaries in the IT industry have grown on average by 5.9 percent last year, according to a PayWell survey The basic salary package also comes with additional benefits in some cases, according to candidates and companies. These include company car (in 3 percent of cases), mobile phone (10 percent), laptop (16 percent), insurance (42 percent), meal tickets (62 percent) and other bonuses (31 percent). Recruitment is made for positions abroad even by very well-known companies. These are the best paid positions, on average in excess of EUR 2,000 plus perks. “A salary package for abroad also includes financial support for relocation, insurance, vacation bonus, transportation, etc.” says Cacina. In Bucharest, salaries in this field are
EUR 1,500 on average while in other large cities such as Iasi, Cluj and Timisoara, they average out at EUR 800. In the Western part of the country, the typical gross monthly salary for a senior software developer is RON 6,711 while a junior developer earns only RON 2,994 per month. An employee who runs a department and is in charge of a large team of more than 50 people will make on average RON 12,127 gross salary a month, according to the AIMS Salary Map IT Study carried out by AIMS Human Capital. The study focuses exclusively on the R&D activity in the western part of the country. “We should keep in mind that we are talking about employees who, for the
most part, benefit from tax exemptions, so the net salary they get is pretty close to the gross figure,” says Mrejeriu. He adds that there are R&D positions where it is very hard to find specialists, for example in ASIC Design in the west of the country. Other positions that require high specialization and are hard to fill are those of experts in the development of mobile applications, Java and C++, BestJobs data shows. “Recruitment for these niche domains is more difficult since eligible candidates are already in very well paying jobs,” says Cacina. “I think in the matter of salaries, we should talk in terms of PPI (purchasing power index) in order to be accurate and
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www.business-review.ro Business Review | April 4 - 10, 2011
not compare apples and pears. When we talk in these terms, salaries in Romania are above average, taking into account the scarcity of resources for niche specializations,” Cosmin Bordea, HR lead at Microsoft Romania, tells BR. In terms of skills, “We are average, neither very good nor very bad,” continues Bordea. “It would be good if we could encourage IT through sectorial policies. I really believe we can at least grow the weight this industry has in the Romanian economy and this will naturally lead to a growth in the number of employees in this sector. When it comes to skills, educational institutions as well as multinational corporations in the IT sector are strong drivers in the process of shaping them,” he adds. In this industry, the salary is higher when the candidate is more specialized. “The more specific the demand is, which will also include the knowledge of one or more foreign languages, the higher the salary expectations. What we can affirm is that in IT salary growth is higher than in other fields, and the transition from junior-middle to senior level is based on different criteria, depending on the type of project and the employer’s professional development policy,” says Diaconu. Pundits in HR think the modifications made to the Labor Code are positive since they match the reality on the market and will encourage companies to create jobs and potential investors to come to Romania. “I do not think the new Labor Code will bring major harm on employees as everyone fears. Most likely, it will stimulate employers and employments. I would compare the introduction of the new Labor Code with that of the flat tax in 2004: there was much ado and many pessimistic scenarios, but in the end the economy became more dynamic and the benefits were high for everybody, including the state, pensioners and public workers,” says Mrejeriu In the IT sector, the impact of the new Labor Code will be minimal. “Companies in this field are struggling to employ people, not to lay them off. The consolidation of the limited-period work contracts is very much in accordance with the dynamics of this market where people are working on projects with a limited time span,” adds Mrejeriu. At a European level, there is very high demand for ICT specialists: for en-
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Courtesy of Microsoft
Cosmin Bordea, HR lead at Microsoft
try-level positions in support centers in developing countries and for senior and management level positions in developed European countries. “There are roles and specializations for which differences between salaries paid on the Romanian market and on the Western European market are significant, but also other specializations where pay in Romania is more comparable with other European countries,” Gabriel Dragos, professional placement consultant at Manpower Professional, tells BR. Many a time, multinational companies will select low-cost countries such as Romania, for the transfer of projects that have come to maturity while the paramount projects that are strategic and require innovation and new technologies are developed in centers with more of a tradition, according to Mrejeriu. “Following this logic, a programmer in the A good IT employee runs more chances of participating in a major project abroad West stands a bigger chance of being involved in important projects. In my opinion, the big games are still in the West, but companies in Romania that have suc- projects here,” says Mrejeriu. we have seen more and more cases of cessfully managed to transfer important otilia.haraga@business-review.ro
www.business-review.ro Business Review | April 4 - 10, 2011
16 BALANCE
No country for the disabled
∫ CORINA DUMITRESCU At the end of last year, 689,680 people were registered disabled at Romania’s General Direction for the Protection of People with Handicaps (Directiei Generale Protectia Persoanelor cu Handicap), according to Human Respect Solutions representatives, a company focusing on the integration of people with disabilities into the work force. However, before he or she can even think of finding a job, a person with a disability stumbles across the everyday issues of public transport, for example. How are subway operator Metrorex and the Bucharest Autonomous Transportation Administration (RATB) making their networks accessible? RATB officials say that over 80 percent of their fleet comes with low floors and access ramps, including 1,000 Mercedes Citaro buses, 100 Irisbus Astra trolleybuses and 68 trams. Moreover, all the vehicles that are currently being built for RATB will be properly equipped, continue the company’s officials.
Photo: Laurentiu Obae
People with disabilities seem often to be overlooked by the Romanian state. In a country where just walking can be a hazardous undertaking even for those with full sight and mobility, one can only imagine how difficult it must be to survive on a daily basis for the mobility or visually impaired. The problems facing disabled citizens are countless. BR talked to representatives of NGOs, the Labor Ministry and public transport companies, as well as psychologists and HR specialists, to shine a light on the hidden issue of disabled Romanians.
Slowly, but surely, things are starting to look up for the disabled in Bucharest
Metrorex, meanwhile, says general manager Gheorghe Udriste, is planning the installation of 83 interior and exterior elevators in 34 subway stations, to be completed by December. So far, Nicolae Grigorescu, 1 Decembrie 1918, Nicolae Teclu, Anghel Saligny, Gara de Nord 2 and 1 Mai subway station have such lifts in situ. Next on the list are Grozavesti, Politehnica, Republica, Petrache Poenaru and Gara de Nord 1. All this sounds good on paper, but how do people with disabilities really cope with life in Bucharest and Romania? Young people and children with seeing and hearing difficulties are the NGO Light Into Europe’s main focus. Representative Alina Popescu told Business Review, “As the Romanian government continues its efforts to develop better social services for the general public, the visually impaired are a neglected demographic and have received very little support and assistance. Facilities providing services are old fashioned and under-equipped. The educational system has yet to respond to the needs of the sight impaired; educational materials are lacking and/or non-existent. As a result of a non-adapted educational curriculum, young Romanian blind people are given limited life prospects and opportunities.” Beyond the classroom, the visually
impaired are faced with other challenges. Popescu quotes the Protection and Promotion of the Rights of Disabled Persons Act in Romania, and a law for people with disabilities, the 448/2006 Law, which stipulate the right of disabled people to have a guide dog and unlimited access, meaning no limits or restrictions in the physical, informational and communicational environment. However, although many were looking forward to the application of this law, she continues, once it happened, new obstacles emerged. “There is no free access to public transport with a guide dog – buses, trams, subway or taxis. There is no access to public institutions, shops, supermarkets or hotels with a guide dog. Conditions are also very difficult for the visually impaired – for instance, there is no sound at traffic lights, which prevents many blind people from traveling independently, and the streets are not safe for blind people to get around, with lots of holes, illegally parked cars and stray dogs.” These are, unfortunately, just a few of the issues confronting the visually impaired, and although all of them are referred to in the law, often the provisions are not applied. According to official statistics, Romania is home to 23,176 people with hearing deficiencies, of whom 1,980 are
children, and 117,797 visually impaired, of whom 3,466 are children. But the true numbers are a lot higher, says Popescu. In terms of access to education, children and young adults have a total of seven schools and high schools for the blind and 20 schools and high schools for the deaf. They may also be integrated into the mainstream education system. State support consists of benefits paid to those with disabilities, continues Popescu, “but no services addressing the rehabilitation of those with sensorial disabilities, focusing on the development of independent life abilities, to allow them true social-professional integration and an independent and productive life.” Moreover, there is an urgent need for educational materials for children, as well as for the support equipment that they require, with the Light Into Europe Foundation currently being the sole supplier of such services.
Into the work force
Representatives of the County Employment Agency (Agentia Municipala pentru Ocuparea Fortei de Munca) say that people with disabilities are typically keen to find jobs and be treated just like everyone else. There is a general need for information and awareness raising programs aimed at civil society, as well as the ma-
www.business-review.ro Business Review | April 4 - 10, 2011
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Photo: Laurentiu Obae
The elevators installed by the subway operator, to become more common in the city
jor economic players, about the employment of disabled people. Integration can be improved through workplace assistance and flexible schedules, say agency representatives. Human Respect Solutions, a recruitment company, has managed to integrate 150 people into the labor market through two of its projects, which are still under development. Oana Iancu of HRS says that the current legislation encourages this, as any company with over 50 employees has to hire people with disabilities, to make up at least four percent of its workforce. Companies that fail to do so have to pay a monthly tax or purchase products or services manufactured or
provided by people with handicaps. There are also advantages for those hiring people with disabilities, such as tax and payment deduction facilities. However, Iancu adds, hiring people with disabilities necessitates certain facilities that the employer must be willing to provide. “Types of disability involve workplace adaptations, not solely referring to the physical space, eg access ramps or flats surfaces over which wheelchairs may pass, but also specific job description, flexi-time and special equipment. The computer may need to be adapted as well, for example a voice program installed allowing staff with visual impairments to
use it,” Iancu states. According to the statistics quoted by the HRS representative, in Romania there are currently 10,924 employees with somatic disabilities, 6,885 with physical ones, 3,417 with aural impairments, 3,097 with visual ones, 207 with HIV and 80 completely blind or deaf. Iancu adds that dedicated job fairs for disabled jobseekers are held. However, although they often compete on the labor market against the able bodied, there are also jobs created especially for disabled staff. Psychotherapist Daniel Pagu says facilitating access to the work force is not easy. “It’s very difficult for a person with a handicap to integrate on the labor market. This is due to external factors (employers’ attitude and mentality, the local community’s mentality, the family’s), as well as personal ones (the type of handicap and the jobseeker’s degree of motivation). I believe that in Romania there is a preconception that people with disabilities cannot carry out lucrative activities and even if they were employed, their efficiency would be low.” He adds, “The optimal solution would be for disabled people to be supported first of all by their family and then be encouraged to develop their skills with the aim of finding a job.” Pagu says there are centers of evaluation and integration for this purpose which he recommends. He calls for job descriptions to be adapted to suit people’s skills, so that they may be better put to use. However, another challenge, the psychotherapist continues, is changing employers’ mentality and work colleagues’ general attitude. Most disabled workers
seek jobs for social purposes, to be part of a group, rather than for financial reasons. He gives the example of a company in Dublin, where employees with disabilities had the same status as everyone else, regular employees. In Romania, however, besides their physical or mental disability, people also suffer from “a social disability”, due to other people’s pity, compassion and general mistrust, under the assumption that a worker with a handicap will not be a productive and confident employee. Still, there are success stories on the local market, says Pagu: “I have had cases in my practice where people with disabilities (albeit rather low-level ones) were integrated. A determining factor in their success was the understanding and acceptance of their employer and, more importantly, their own motivation to work.”
corina.dumitrescu@business-review.ro
KEY FIGURES 689,680 people with disabilities registered in Romania 23,176 with hearing deficiencies, including 1,980 children 117,797 visually impaired, including 3,466 children 10,924 employees with somatic disabilities 6,885 employees with physical disabilities 207 employees with HIV 80 employees completely blind or deaf
www.business-review.ro Business Review | April 4 - 10, 2011
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Investors see local tourism going places Tourism, agriculture and infrastructure – these are the three industries generally acknowledged as being Romania’s most attractive investment destinations and the potential generators of considerable economic growth in the years to come. The International Investment Forum, organized by Business Review and Beyond Transylvania last week, took a closer look, bringing together representatives of the business community and the authorities to discuss both some of the issues they are facing locally and some projects that are in the pipeline this year. ∫ SIMONA BAZAVAN “The recession has not changed the attributes and the attraction of Romania to foreign direct investments. It is only a question of timing and lost opportunity,” said Raymond Breden, president-elect of the British Romanian Chamber of Commerce and director of taxes at KPMG, speaking at the event. In his opinion the reasons that tourists come to Romania haven’t changed, but nor have the local impediments to tourism. Once financing picks up, and should more EU funds be accessed, the situation is expected to improve as the opportunities are still there. But what measures would push the local tourism industry forward? What others know about Romania and the way the country is perceived internationally are crucial when trying to attract foreign tourists. “Branding should be done in the way the customer needs to hear it,” said Christopher Owen Howard, managing director of 4 You Property Partners Ltd and an international consultant on tourism. The last year has seen an improvement in relations between the authorities and companies active in tourism, thinks Corina Martin, president of the National Association of Tourism Agencies in Romania (ANAT).She expressed her belief that should the tourism bill be passed by Parliament, the new law could lay the foundation for better dialogue and long awaited decentralization. Further developments on the short and medium run are gaining impetus from the 2013 European Youth Olympic Winter Festival, which will be taking place in Romania in the Prahova Valley. One example is the EUR 200 million Poiana Azuga Resort project developed by Romanian company Besta Group in Azuga. The company is currently looking for a partnership with an investor and is hoping to start the construction of the ski slopes this year and finish them in 2012. The International Investment Forum, organized by Business Review and Beyond Transylvania last week at Howard Johnson Grand Plaza in Bucharest, attracted around 100 members of the local business community, potential international investors as well as representatives of the authorities. The event was followed by three workshops on public private partnerships, airport development and on the local hospitality industry. The forum was sponsored by Besta Group, The Advisers, WDP Romania and Noerr, and with the support of Trend Hospitality Consulting & Management, Stephenson Harwood and McGregor and Partners. For more information about the International Investment Forum and future Business Review events, please visit www.business-review.ro/events.
editorial@business-review.ro
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1. The International Investment Forum gathered around 100 participants 2. Tinu Sebesanu, CEO of Trend Hospitality Consulting & Management 3. Maria Tudor, administrator of Besta Group 4. The first session tackled the topic of regional trends in international tourism and opportunities for Romania 5. Howard Scaife, managing director of Aktirom Consult 6. During the event’s second session, participants discussed the opportunity of investing in infrastructure, agriculture and airports development. 7. Valentin Stanciulescu, business development manager, WDP Romania 8. Neil McGregor, managing partner of McGregor&Partners 9. Costin Barbu, valuation&investment division of The Advisers/ Knight Frank 10. Corneliu Vasile Popa, head of real estate department at Noerr
www.business-review.ro Business Review | April 4 - 10, 2011
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All photos: Laurentiu Obae
11. Panelists included members of the business community and representatives of the authorities 12. Participants discussed the need for regional airports development in Romania 13. The workshop on the local hospitality industry was moderated by Sonia Nastase, general manager, Howard Johnson Grand Plaza Hotel 14. During the workshop on public private partnerships company representatives discussed the implications of the legal framework for investors
www.business-review.ro Business Review | April 4 - 10, 2011
20 CITY
FILM REVIEW
RESTAURANT REVIEW
Periferic (Outbound)
It’s Thai, but not as we know it Thai Moods, Petre Cretu 63 (Near the Arc), tel 0723 174039
Actress Ana Ularu, in a remarkable role
MICHAEL BARCLAY Directed by: Bogdan Apetri Starring: Ana Ularu, Mimi Branescu, Andi Vasluianu On at: New Cinema of the Romanian Director (at Romanian Peasant’s Museum, with English subtitles) Photo: Laurentiu Obae
My friend Nigel had just flown into Bucharest from his home in Thailand, and demanded that I take him out for dinner after a long, exhausting flight. I agreed, and told him we were going to a Thai chophouse. “Oh no,” he moaned, “I eat that stuff all day and night. Can’t you take me somewhere different?” His pleas were in vain, for I told him that I wanted to see if his critical opinion on the authenticity of the Thai Moods food agreed with mine. It did! But first let us look at Thai cuisine. It is the most fragrant and aromatic food in the whole of Asia, and when it is cooked correctly, it is sensational. Yet a lot of Europeans are afraid to do it as they are confused by the ingredients listed in Thai cookbooks. So let me make it simple by translating the basic ingredients, a lot of which can now be purchased here in Bucharest. So: Rice – but Thai rice is called ‘Jasmine Rice’ and has a distinct flavor of flowers. Ginger – but Thai ginger is called ‘Galangal’ and is distinguished by a deeper flavor than normal ginger. Sugar – but the Thai version is ‘Palm Sugar’ made from the sap of the Palmaya palm, and it tastes like ordinary brown sugar. Tamarind paste – widely available throughout Europe, it is made from the fruit and seeds of the ‘Tamarindus Indica’ tree which grows throughout North Africa and parts of South East Asia. It has not much of a flavor, but it adds a sweet and sour effect to dishes. Basil – but Thai basil has a stronger earthy yet sweeter taste than European basil. Lime leaves – but the Thai version is from their ‘Kaffir Lime’ tree, which produces fabulously strong leaves which can be frozen or purchased as a dried product in good supermarkets. Lemon grass – a thick woody stalk used for lemon flavoring, but not for eating. You cannot use fresh lemon juice in high-heat stir frying, as the acid burns and destroys the dish. So the clever Asians grew lemon grass as an alternative. Fish sauce – again available in most supermarkets, it is a watery pungent liquid made from fermented anchovies and used in almost every dish throughout Thailand and Vietnam. It is the alternative to soy sauce which dominates Chinese and Japanese cuisine. Thereafter there is the copious use of such products as fresh mint, lime juice, peanuts, red hot chilies, coconut milk, coriander and cinnamon. OK, these are
The heights of Thai cuisine or just ‘beach tourist’ food? the basic ingredients. The problem with Thai Moods is that they use them all in profusion with no regard for measured amounts of each ingredient. So many dishes simply taste the same. So away we go to the menu. I gasped in horror at the prices. With simple starters priced around RON 23 and mains around RON 60, this was totally disproportionate to the House’s purchasing price of the ingredients. Yes, they are entitled to make a profit, but hey House – be reasonable, but not greedy! For instance, six simple spring rolls at RON 23 was taking the piss out of the customer. I asked Nigel for his opinion on the choices and varieties available on the menu. He said they were authentic Thai dishes, but it was a safe ‘tourist menu’ for Europeans. In Thailand the locals would eat far more adventurously, and in many cases they would eat dangerously by cooking insects, snakes and generally anything that breathes. But let’s get back to Bucharest. Nigel ordered a starter of the classic soup dish of ‘Tom Yum Goong’ which is simply prawn, mint, tamarind and lemon grass. He has this almost every day in Thailand, but he said it was nothing like the real version. It was unidentifiable! Since this simple fellow has not been versed in culinary arts (or any other arts for that matter) he was incapable of reverse-engineering the ingredients in order to tell me what made it incorrect. But he pronounced it as such. However, he did not complain about the flavor. I went for a simple starter of a few slices of chicken with a (peanut) satay dip. The chicken was chicken and the satay was lacking in depth and smoothness. So off to mains. I was astounded at the nerve of the House to charge RON 47 for a ‘vegetarian fried rice.’ It was vegetables, rice and pineapple. Naturally we passed on this rip-off!
But worse still was the price of RON 70 for ‘Jungle curry’. In case you do not know it, there is no fixed recipe for this dish as it is traditionally the use of every surplus ingredient in the kitchen. So the House added prawns, pepper and coriander. No way at RON 70! So Nigel chose a ‘Penang Curry’ at RON 60. It was an overpriced slice of thin beef with red curry paste (buy it in a jar at Mega Image), palm sugar, lime leaves, fish sauce and coconut milk. I had the world famous ‘Massaman Curry’ which should be meat of my choice, lime juice, tamarind, potato, palm sugar, cinnamon and coconut milk. We swapped dishes half way through. They were identical in flavor with the exception that Nigel had some beans and I had some potato. Gimme a break! The House is just lumping together all the ingredients in the kitchen without any skill. At the end of our expensive meal, Nigel said it was just Thai “beach tourist” food, where the restaurants serve you nothing of beauty or quality, safe in the knowledge that they will never see you again, and that another mug is waiting to come in to take your table. He added that he would find far better in the Thai street markets. That said, I have to admit that none of the food at Thai Moods was bad. Not at all. It was just disappointing to me and Nigel who know what the real thing is. In my most charitable opinion, the House has survived for the last five years because the locals do not know the incredible heights that Thai cuisine can climb to – but not here. Being a Thai restaurant without any serious competition they will do well in Romania, where culinary ignorance reigns supreme. BUT that is like being the tallest midget in the world. It’s no compliment, and nothing to be proud of.
mab.media@dnt.ro
∫ CORINA DUMITRESCU A much anticipated film, based on a script co-written by Cristian Mungiu, the director of 4 Months, 3 Weeks and 2 Days, and directed by Bogdan Apetri, a Romanian who has spent his career in the United States, Outbound (original title: Periferic) has finally reached Romanian screens. As is already tradition with Romanian new wave titles, the film has so far been very well received at international festivals, but has yet to pass the test of the local audience. The picture tells the story of Matilda, a female prisoner given a day’s leave from jail, who tries to use her day of liberty to put her life in order. In the 24 hours she is given to attend her mother’s funeral, Matilda meets up with the three most important men in her life: her estranged brother, her violent former boyfriend and father to her eight-year-old child and, finally, the son with whom she plans to flee the country. Matilda is a rough character who almost never smiles throughout the movie’s total running time of 87 minutes. It seems that life has been hard for this woman – or maybe she’s made the wrong choices, as one of the movie’s lines eventually suggests. The protagonist is the kind of person everybody has known since childhood, but was too afraid too interact with – a sort of female neighborhood thug who was perhaps made such by circumstances. However, in spite of her past and dubious methods, Matilda is a predominantly positive character – you may even find yourself hoping for her plans to succeed. The film’s title in Romanian, Periferic (Peripheral), refers to the marginal world that the story takes place in. It is a title that offers the viewer the comfort of not being part of the presented world and, hence, not affected by the crude realism depicted. The young Ana Ularu, portraying the hardened Matilda, is truly amazing. The beautiful 25-year-old manages to turn herself into a worn-down, sturdy and determined ex-con. Other parts are played by actors who crop up frequently in new Romanian pictures: Andi Vasluianu as Matilda’s brother and Mimi Branescu as her former boyfriend.
corina.dumitrescu@business-review.ro
www.business-review.ro Business Review | April 4 - 10, 2011
CITY 21 FILM FEST
TEST DRIVE
Does the Nissan Juke box you NexT Film Festival prepares in or let you out? to welcome movie buffs
Any veteran car manufacturer has in its portfolio a representative model. Mini was the pioneer, followed by Fiat’s new generation. Citroen also came up with the DS3, a modern lifestyle version and not just a redesign like the first two examples. But recently, Nissan has changed the game. Business Review tested the Juke to bring you the pluses and minuses of this daring model. Currently, Nissan stands out with the Juke model. This is a car that the driver either loves or hates – it is hard to sit on the fence. The car has a fun appeal as a small scale crossover, at least on the outside. On the inside it is very spacious for what it claims to be. Its big advantage is the four doors which allow easy access to the back seats. The trunk/luggage carrier is not big, but roomy enough, especially as it has a "secret" partition where along with mandatory items like the medical kit, triangle, etc, there is room for various other objects, namely those which are usually scattered around the trunk with no designated space of their own. Along with modern functions such as the start/stop button and the fact that you can start the engine with the key in your pocket, bluetooth, automatic air conditioning, electric windows in all four doors and electric folding mirrors, the tested version also had navigation and a reverse camera. And there are plenty more such functions. But the piece de resistance of this car is the option of setting its running mode, choosing between Eco, Normal and Sport. It would be perhaps going too far to describe it as several cars in one, but the dif-
ferences between the three settings are obvious. In Sport mode the car is very brisk, at least during city rides, where it cannot give its best. Nevertheless, don’t expect a sports car, as its 117CP shows its limits in certain situations. In Eco mode, consumption drops considerably, but the throttle will also prove limp. It's clear that the Normal mode is a combination of the other two, but with the Sports and Eco modes available it would be a shame not to use one of them. The gear lever feels a bit imprecise, lacking German rigor, while the visibility leaves room for improvement in some situations as the car shape takes its toll. The Nissan Juke is therefore an alternative, long awaited by many young people, and why not, maybe even by people past a certain age, but who want to drive something different from a car with a classic line. Also bear in mind that any new launch causes a lot of buzz. Let's wait and see what drivers are saying in a few months’ time. ∫ Dana Verdes
Nissan Juke 1.6 Tekna Engine: 1.6 l, Euro 5 Fuel: gasoline Traction: 2wd Power: 117 HP Couple: 158Nm Transmission: 5-speed gearbox Price: EUR 18,840 including VAT Source: Nissan
MUSEUMS
Antipa Museum to reopen doors in April The Grigore Antipa Natural History Museum will reopen to the general public in April, a few months later than initially scheduled. The museum closed in January 2009 for modernization works. The delay is due to issues surrounding the preservation of the exhibits, as well as problems with the firm that won the auction for the works, said officials from the Ministry of Culture, quoted in the media. The modernization works have reportedly cost EUR 13 million, which came
from a loan from the Council of Europe development bank and from state funds. The museum is located on Pavel Kiseleff Boulevard, no. 1. It developed from the National Museum of Natural History and Antiquities of Bucharest, founded in November, 1834, by Prince Alexandru Ghica. The venue houses almost 2 million specimens (some of them of microscopic size), grouped in over 130 types of collection. ∫ Corina Dumitrescu
STOCKEXCHANGE
Courtesy of Nissan
Nissan’s Juke model: either love it or leave it
Short and medium-length films will fill the program of the fifth edition of NexT International Film Festival. The organizers are promising movie lovers a “colorful” selection for the five-day visual feast, which takes place from April 6th-10th at Cinema Scala, Cinema Elvira Popescu and the Carturesti Loft, in Bucharest. This year’s competition comprises 26 titles, chosen from the 1,000 entries by film critic Andrei Gorzo and his co-selector Irina Trocan, the winner of NexT 2010’s critic competition. The directors and sound designers of the movies will also be in attendance, as NexT is also intended as a meeting place for everyone who is passionate about film. And a series of hors concours events will take place, meaning that over 100 short and medium productions will be showcased throughout the festival’s duration. The program will feature shorts garlanded at the top festivals in the world, films for kids, shorts made by students, debut feature films, premiers from well-known directors and much more, promise organizers. NexT’s artistic director, Gorzo, has praised this year’s event, which he describes as more “colorful” than ever before. “The way it all turned out, without our intention, made this year’s selection the most colorful and engaging competition so far, with genres we haven’t had
The festival is dedicated to the memory of director Cristian Nemescu
before: science fiction, films with submarines, some very beautiful love stories, period films and pseudo-documentaries.” The festival is dedicated to the memory of director Cristian Nemescu (a pioneer of the new wave of Romanian cinema and best known for directing California Dreamin’) and sound designer Andrei Toncu (who also worked on California Dreamin’). Cinema Scala is located at Bulevardul Magheru 2-4, Cinema Elvira Popescu at Bulevardul Dacia, Nr. 77 and Carturesti Loft at Strada Pictor Arthur Verona 13. ∫ Corina Dumitrescu
www.business-review.ro Business Review | April 4 - 10, 2011
22 IN TOUCH
QUOTE of the week
ROMANIA IN THE INTERNATIONAL PRESS
Are we there yet?
TES Magazine dubs Roma “the new Mancunians”, April 1
“I said only one thing: that Romania has every chance of being out of recession by the end of the first trimester. If it has happened we will know when the National Institute for Statistics provides the official data. I never said – and this is just manipulation by television stations – that the day after two semesters of consecutive economic growth, everything will be just milk and honey. It won’t,” said Prime Minister Emil Boc in a press conference last week, quoted by Mediafax. The premier asked everyone talking about the recession to explain precisely what they meant, so they “would not deceive the public and their expectations.” In midFebruary, Boc said there were signs that Romania would officially exit recession at the end of April. Both the government and the IMF estimate a 1.5 percent economic growth for this year.
TES Magazine has dubbed Roma immigrants “the new Mancunians”, a s high n u m bers of the ethnic minority have left Romania since the country’s EU accession, heading straight for Manchester: “Since Romania joined the EU in 2007, Cedar Mount High in Manchester’s Gorton suburb has seen an influx of Roma children. Socially and economically marginalised, many are attending school for the first time – but a targeted approach is raising aspirations.” The article then tells the story of 16year-old Samuel Filipache whose “family are among up to 2,000 Romanian Roma who have settled in the terraced streets of south-east Manchester over recent years.” The teenager says that in Romania he would not have had the same educational opportunities. “If my family had stayed in Romania, I don’t think I’d even be in education because teachers are racist against Gypsies and often don’t give us school places,” he says. “Coming to the UK has changed my life – it’s opened my mind. I feel different from all the Roma in my community. I feel part of the UK.” Filipache’s case is not unique, as the article goes on to show. “Samuel is one of
WHAT WE ARE WORKING ON Otilia Haraga Senior Journalist
around 140 Roma children who have joined his school over the past three years. About 100 of them – one in nine pupils at Cedar Mount – are Romanian. A nearby primary school has experienced a similar influx, with smaller numbers enrolled at 20 other schools around the city.” Many of the Roma children had never been to school, the article states. “While some pupils are now coming up from junior school, few speak
is tackling the hot topic of data security. A major cataclysm could leave many companies without precious data if they are not carefully about how they store it. The article will look at how companies use data back-up and the options available to them to protect their information, with a focus on data centers and the services they offer. otilia.haraga@business-review.ro
Dana Verdes Senior Journalist
much English and many have never been in education before. Meeting the needs of pupils who have never held a pen is a new experience for many secondary teachers.” Yet these children do not have access to the benefits that the locals do. “But many children from Romania – which joined the European Union in 2007 – do not qualify for free school meals since their parents are severely limited in the benefits they can claim.” The article notes that the situation of the Roma is an international issue. “There are thought to be about 10 million Roma worldwide.” The case of Manchester is cited as a positive example of Roma integration: “Roma children are beginning to mix with other pupils and more girls are staying on at school.”
is working on a piece about debt restructuring. Following the international trend, the local debt market is expected to ride a wave of restructurings. Pundits expect deleveraging to emerge locally as one important way to restructure debt. dana.verdes@business-review.ro
Simona Bazavan Journalist is writing about the local coffee market. Sales on the Romanian coffee market fell by 10-15 percent last year compared to 2009. BR takes a look at the plans of local coffee importers and the strategies they are devising to keep their sales levels up. simona.bazavan@business-review.ro
EVENTS, BUSINESS & POLITICAL AGENDA April 5 10:00 Cetelem IFN organizes a press conference at the Novotel Hotel. By invitation only. April 6 09:30 Nielsen launches its annual report, ShopperTrends, at the Embassy. By invitation only. April 7 10:00 The Dinu Patriciu Foundation organizes a conference on the return to Romania of young people who studied abroad. The event will take place at
Athenee Palace Hilton. By invitation only. 11:00 iStyle organizes the launch of the iStyle Cotroceni – Apple Premium Reseller Store in AFI Palace Cotroceni. By invitation only.
– Focus on Renewable Energy event at Ramada Plaza Hotel. For more information about registration and future Business Review events, please visit www.business-review.ro/events.
April 12 10:30 Romaqua Group organizes a press conference at JW Marriott Bucharest Grand Hotel. By invitation only.
May 4 ∫EVENT Part of the Legal Business Series, Business Review organizes the Employment event at Ramada Plaza Bucharest. For more information about registration and future Business Review events, please visit www.business-review.ro/events.
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April 14 ∫EVENT Business Review organizes the Energy
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ISSN No. 1453 - 729X
FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALISTS Otilia Haraga, Dana Verdes JOURNALISTS Simona Bazavan, Corina Dumitrescu COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi, Michael Barclay ART DIRECTOR Alexandru Oriean PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu
EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Adina Milea SALES & EVENTS Ana-Maria Nedelcu, Claudia Munteanu RESEARCH & SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.31 Office: 031.040.09.32 Fax: 031.040.09.34 EMAILS Editorial: editorial@business-review.ro Sales: sales@business-review.ro Events: events@business-review.ro