Business Review No. 12, April 11 - 17, 2011

News: KDF Energy owner George Brailoiu has bought manuscripts

by Romanian-born philosopher Emil Cioran for just over EUR 400,000. He is donating them to the Romanian state, which didn’t participate in the auction for lack of available funds »page 8

DEBT RESTRUCTURING SEGMENT AS THE ECONOMIC HARDSHIP LEADS MORE AND MORE FIRMS TO DEFAULT ON THEIR LOANS, BR LOOKS AT THE GROWTH IN DEBT RESTRUCTURING

ROMANIA’S PREMIERE BUSINESS WEEKLY

April 11 - 17, 2011 / VOLUME 16, NUMBER 12

»PAGES 14-15

A BITTER TASTE

LINKS

BALANCE

PLUS The steaks are high as Data backup Analyze this How many companies Local demand for psy- we review JW Marare prepared to deal cho-therapy services riott’s Steakhouse with the loss of their is still small, although » page 18 data in an emergency? the tough economic Business Review intimes are boosting Get ready to Rock the vestigates stress levels City with Prodigy » page 21 » page 12 » page 16

Courtesy of Dreamstime

Players on the local coffee market are feeling cautious about the year ahead.

Romanians reluctantly cut back on their intake last year which, combined with a surge in the international price of coffee and an unfavorable local fiscal regime, left companies brewing up new ways to percolate a profit »pages 10-11

www.business-review.ro Business Review | April 11 - 17, 2011

NEWS 3

NEWS in brief WEEK in numbers

1.3 million ron – the sum allotted by the Romanian government to recover a set of Dacian jewelry, coins and other items currently in Germany after being illegally taken out of the country and recovered by the German government

5,000 Photo: Laurentiu Obae

IMAGE of the week Full steam ahead as The Princess breaks records in Bucharest ‘The Princess,’ a painting of a steam railway engine, was auctioned last week in Bucharest by Artmark. The painting, which is 4.5 meters high, 20 meters long, and made up of 32 panels of 1.12 meters by 2.5 meters, is set to be listed in the Guinness Book of Records as the largest work of art ever sold through an auction house. It is the work of Alexandru Bunescu and is a 1:1 illustration of a 1889 steam railway engine designed in the US and built in Bucharest.

COMPANIES LeitnerLeitner Romania sees turnover go up by over 10 percent in Q1 Tax consulting and auditing company LeitnerLeitner Romania has reported a turnover increase of over ten percent for the first quarter of this year against the same period of last year. The results were mainly generated by adding banking, leasing and insurance services to its portfolio earlier this year and by a general trend of outsourcing accounting in order to reduce risks.

LeitnerLeitner representatives estimate an increase of investments in the fields of processing high quality goods, renewable energy, food processing and retail this year.

Heineken Romania reports seven percent 2010 turnover increase Heineken Romania has reported a RON 934 million turnover for 2010, seven percent up on the previous year.

Sales volumes went up by six percent, mainly due to the Ciuc Premium and Bucegi brands. Starting this month, Heineken Romania will import eight more brands from the company’s international portfolio: Amstel, Birra Moretti, Krusovice, Foster’s, Murphy’s, Strongbow, Sol and Desperados.

Romcab signs EUR 27 million contract with Delphi Packard Local manufacturer of cables and electrical conductors Romcab Targu Mures has signed a EUR 27 million contract with US car parts manufacturer Delphi

Packard. The contract is set to last one year, starting next month. It represents over half of the turnover Romcab was planning for in 2011.

Romcab has a 20 percent market share on the cable production segment, and had a EUR 12 million turnover last year. Among its end-clients are Aprilia, Ducatti, Suzuki, Piaggio, Renault, Fiat, Opel and Valeo.

SACE opens Bucharest office, announces EUR 215 million of local projects SACE, the financial and insurance group controlled by the Italian Economy and Finance Ministry, has opened an office in Bucharest.

The office, which will be run by Speranta Tirsar, will work as a regional center for Central and Eastern European coun-

euros – the subsidy the government is considering giving buyers of electric cars. The sum is meant to bridge the price difference between a regular car and an electric vehicle, estimated by the environment minister, Laszlo Borbely

tries, where the group expects to strengthen its role as a facilitator of Italian and Romanian businesses. SACE Group provides a range of insurance and financial products and services for companies and banks.

“The SACE portfolio in Romania stands at EUR 280 million, and we are currently working on projects worth EUR 215 million. Our presence in Bucharest is setting the stage for other commitments of the SACE group in Central and Eastern Europe, where Romania has a strategic position,” said Michal Ron, network and international relations director with the group.

Renaissance Capital wins OMV Petrom SPO mandate The Romanian government has announced that Renaissance Capital was ranked first in a tender to organize a secondary public offering of a 9.84 percent stake in OMV Petrom SA, Romania’s largest oil and gas company. Renaissance Capital is working with a consortium of local brokerage firms, including EFG Eurobank Securities, BT Securities and Romcapital.

To support its activities in Romania, Renaissance Capital plans to open a Bucharest office, which will offer investment banking services, privatization advisory and private equity financing. Renaissance Capital is an investment bank focused on the emerging markets of Russia, Eastern Europe, Central Asia and Africa.

www.business-review.ro Business Review | April 11 - 17, 2011

4 NEWS

NEWS in brief Asus estimates USD 60 mln turnover in Romania this year Asus Romania, the local branch of the Taiwanese hardware producer, aims to reach a local turnover in excess of USD 60 million, 41 percent up on the previous year.

In 2010, the company posted a turnover of USD 42.5 million on the Romanian market.

“In 2011, we intend to exceed turnover of USD 60 million, based on the overall growth of the IT market by 10-15 percent, growth in market share for all the products we are promoting as well as new product launches,” said Ciprian Donciu, sales manager of Asus Romania, quoted

by Mediafax newswire.

INSOLVENCY Diverta operational costs down 35 percent in 2010 Retailer Diverta cut its operational costs by 35 percent in 2010 by renegotiating rents, reducing fixed costs and moving its HQ into a building it owns, according to Casa de Insolventa Transilvania, the legal administrator of the insolvent retailer. Last year Diverta closed 13 stores and opened two new ones in Sun Plaza Bucharest and Atrium Arad. In 2010, the company posted a EUR 21 million turnover and estimates that it will reach the same level this year. Diverta is currently working with Casa de Insolventa Transilvania on the network’s reorganization plan, which could be filed at the beginning of May.

PROPERTY & DEVELOPMENT C&W: Romania among top European destinations for commercial center development Romania is in the top 10 in Europe for new developments with delivery terms over 2011–2012, according to a recent survey by Cusman & Wakefield.

Names such as H& M, Zara, New Yorker, C&A, Takko and Deichmann are the main anchors for retail developments, and the local market continues to be attractive even if economic conditions are worse than in other CEE countries, the report adds.

Romania has over 25 cities with more than 100,000 inhabitants which allows for organic growth for most networks of international fashion retailers, food and DIY retailers.

Be Igloo adds West Park Militari to portfolio Be Igloo has added West Park Militari to its sales portfolio and plans to sell the 40 homes left out of the 197 in the project by the end of the year. Apartments are now being sold at prices 25 percent lower than 2008 when the project was finished.

West Park Militari was developed by Seven Hills, the real estate division of BSG Group, and is being promoted, starting

this month, by Be Igloo, which will offer integrated marketing, promotion and sales services. It includes four blocks on eight and ten levels, containing apartments with surfaces between 78 and 103 sqm. Prices range from EUR 79,000 to EUR 105,500.

New Yorker opens first Iasi location in Palas Mall German fashion retailer New Yorker will open its first Iasi location in the Palas Mall. The store has a 960 sqm surface, and is the brand’s second outlet in the Iulius Network, after the opening in the Timisoara Mall.

New Yorker began trading locally in 2007, and it currently has 17 stores in Bucharest, Cluj, Sibiu, Bacau, Suceava, Focsani and Braila. Palas Iasi was developed by Iulius Group Iasi, and has a total rentable surface of 47,800 sqm. It brings together two retail concepts: shopping street and shopping mall.

Cinema City invests EUR 5 million in Braila multiplex Cinema City is inaugurating its first multiplex in Braila, which represents its tenth national investment since 2007. The EUR 5 million investment, located in Promenada Mall, consists of a 10-cinema multiplex, with a capacity of 1,724 seats.

With the opening of Cinema City Braila, the cinema operator reaches 98 halls on the local market and offers a total of 16,300 seats. In 2011, Cinema City aims to extend its network to Targu Mures and Constanta.

INCENTIVES Government plans EUR 5,000 subsidy for buyers of electric cars The Environment Ministry is working on an emergency ordinance granting incentives to the buyers of electric cars. The value of the incentives is set to cover the cost difference between an electric car and a regular car, which is currently at EUR 5,000, Mediafax reports.

In the first phase, public institutions will use electric cars, with incentives coming from the Environment Fund, either through the Rabla car replacement program, or through direct grants of up to 25 percent of the cost of an electric car, Mediafax writes. “The price difference between an electric car and a regular one is around EUR 5,000,” said the environment minister, Laszlo Borbely.

Last week, the minister met representatives of Renault to discuss ways by which the state can encourage the buying of electric cars instead of standard ones that use fossil fuel.

Another issue discussed at the meeting was infrastructure, which is currently missing.

“It is important that we have the legal framework, and for producers to know that the state is offering facilities to those looking to buy such cars. After this we will see what we can do to develop the necessary infrastructure for them,” Borbely said.

www.business-review.ro Business Review | April 11 - 17, 2011

5

Kazakhstan Citizens Elect their President

Yerzhan Orynbassarov Deputy-CEO of The Rompetrol Group

Although other candidates, apart from the current president, Nursultan Nazarbayev, have entered the race for the head of state (Gani Kasamov, Zambil Ahmetbekov and Mels Eleusizov), the election campaign ran without great intrigues.

Mr. Nazarbayev enjoyed a high degree of popularity during his last mandate, and in all the latest surveys he’s been shown as a clear winner.

“It’s a sunny and beautiful day and I’m sure the results will be likewise”, said smiling Gavit Kurkimov, Rompetrol’s Corporate Governance Director.

“You know, even the flag of Kazakhstan has a sun on it, which represents the source of life and energy.

It is also a symbol of wealth and abundance; the sun's rays are like grain which is the basis of abundance and prosperity”, completed Mr. Kurkimov.

All the Kazakhstani mass-media presents Mr. Nazarbayev as the hero of a success story, achieving in 20 years, since he took the presidential seat, a growth in GDP of 12 times – from 800, to 9000 USD. Moreover, Kazakhstan can brag with the lowest unemployment rate amongst all countries from the Commonwealth of Independent States (CIS).

After the elections, the former Government presented its resignation, offering the possibility to the president to make new changes, these being in fact the only ones which will intervene in the political environment of Kazakhstan.

Over 8 million Kazakhs all over the world have expressed their vote at the presidential elections, on 3rd April.

The absolute favorite and the winner of the race was the actual president, Nursultan Nazarbaev, who is leading Kazakhstan for over two decades.

While the majority of the Kazakhs are voting in their own country, those who live abroad also did their constitutional duty.

Amongst them there was a delegation of over 30 employees of The Rompetrol Group and their families, who traveled to Budapest to cast their vote.

While for some the election process is a mere mechanism, few would have made a 1.000 km journey only for that.

Along with the people who traveled to Hungary, we can count Yerzhan Orynbassarov, the Deputy CEO of The Rompetrol Group.

“I’m doing my duty as a Kazakhstani citizen and I strongly believe that such elections should be of the utmost importance for everyone. It’s a responsibility to choose your president and I’m confident that for such an emerging country like Kazakhstan there’s a bright future ahead”, stated Mr. Orynbassarov, a few moments after exiting the voting booth.

ADVERTORIAL

Gavit Kurkimov Business Development Vice-President of The Rompetrol Group

www.business-review.ro Business Review | April 11 - 17, 2011

6 NEWS PROPERTY

ENVIRONMENT

Businessman Liviu Tudor announces EUR 35 mln of projects

Eco-Rom Ambalaje invests EUR 7 million in selective collection of light packaging

S

o m e 331,700 tons of waste were collected last year by Eco-Rom Ambalaje organization, owner of the Der Grune Punkt system on the Romanian market. The amount represents 53.7 percent of the total quantity of light packaging, which consists of 617,100 tons. The legal objective set for 2010 was 48 percent of this amount. The results are due to the increase in investments in the selective collection of light packaging, which reached EUR 7 million last year, 85 percent of which came from collectors and waste management officials, said Eco-Rom Ambalaje officials.

Of the total quantity of waste collected last year, almost 25,000 tons came from the public, which represents a 60 percent increase compared to last year.

“This rise occurred because we increased by almost 50 percent the infrastructure that was existing one year ago.

Courtesy of RABO

Liviu Tudor, owner of West Gate and Novo Park projects

Brightly colored bins now dot the land

We grew the number of connected localities to 150 and so raised the number of inhabitants who benefit from the sys-

ENVIRONMENT

LEGISLATION

EU warns Romania over failure to comply with air quality rules

Senate adopts bill to combat children’s access to pornography

L

A

Dreamstime

iviu Tudor, owner of the West Gate and Novo Park projects in Bucharest, is developing five new projects – three office buildings, a block of studio flats and a club inside West Gate, all worth a combined EUR 35 million investment, he has announced.

The businessman is providing about 80 percent of the money from his own sources, with the rest coming from European funds. Three of the projects, two office buildings and the studio block, are estimated to be finished this year.

Tudor said that for the past two years Romania has not had a major real estate transaction, and added that market revival depends on the banks’ willingness to resume lending and the general confidence level.

Last week the businessman also announced the official launch of the Romanian Association of Building Owners (RABO) and its affiliation to the European Property Federation (EPF). The association aims to “foster a sound, transparent and stable economic and legislative framework, governed by EU-level norms and standards, for local and foreign property owners active on the Romanian market,” said Tudor, president of RABO. RABO presently has six members including Genesis Development owned by Tudor, the Europolis investment fund and Monolit Development, which have a combined portfolio estimated between EUR 5 and 10 billion. By the end of the year Tudor predicts that RABO will have around 20 members, all the major real estate owners in Romania. The admission fee is EUR 1,000 and yearly membership costs EUR 1,200.

Simona Bazavan

tem from 3 million to 4 million,” said Mugurel Radulescu, president of EcoRom Ambalaje.

For 2011, Eco-Rom aims to extend and consolidate its public-private partnership, through the extension of the selective collection infrastructure and the increase of the number of citizens connected to the system to as much as 25 percent of the Romanian population.

The current local legislation makes it necessary for the authorities to reduce deposited waste by 15 percent.

Eco-Rom Ambalaje began its activity in 2004, with 81 company members. In 2010, 1810 companies adhered to the system.

The founding members of the organization are Argus, Ball Packaging Europe, Chipita Romania, Coca-Cola HBC Romania, Heineken, Mars Romania, Munplast, Pepsi Americas, Romaqua Group Borsec, Tetrapak, Unilever and Titan. ∫ Corina Dumitrescu

Romania has failed to comply with EU regulations in the field of air quality

T

he European Commission is sending Romania a reasoned opinion under ongoing infringement proceedings for the country’s failure to comply with air quality limits on airborne particles known as PM10. Romania has two months to comply. In the absence of a satisfactory response, the Commission may refer the case to the EU Court of Justice.

At the same time, the EC is taking Belgium to court for a similar infringement.

Belgium has so far failed to effectively tackle excess emissions of these particles in eight zones across the country, says the EU. Directive 2008/50/EC on ambient air quality and cleaner air for Europe requires member states to limit the exposure of citizens to the tiny particles known as PM10. The legislation sets limit values for exposure covering both an annual concentration value and a daily value that must not be exceeded more than 35

times in a calendar year.

Since the legislation entered into force in 2005, the limit values for PM10 have not been respected in eight air quality zones in Belgium, in the Brussels, Flanders and Walloon regions.

In Romania, 17 areas have been found to exceed PM10 limits. Romania applied for an exemption in 2010 for eleven of these 17 areas. After considering the exemption request, the Commission concluded that the necessary conditions have not been met, and so a reasoned opinion is being sent to Romania for nine additional areas (the situation having improved in two of the regions concerned in the meantime). Airborne particles are mainly present in pollutant emissions from industry, traffic and domestic heating. They can cause asthma, cardiovascular problems, lung cancer and premature death. ∫ Staff

bill seeking to prevent children accessing pornography has been adopted by the Commission for Culture of the Romanian Senate. Websites with adult content will be compelled to obtain certification from the Ministry of Communications.

They will also be compelled by law to set a password for accessing the website.

Users of these websites will have to pay an additional fee that will be registered on their internet bill. In this way, parents will be able to see on their bill if their children have accessed websites with adult content.

The cost of this additional fee as well as the certification criteria will be decided by the Ministry of Communications.

The ministry will also be able to block adult-content websites if they do not comply with certain conditions.

Any company or individual that has a website distributing adult content is obliged to notify the Ministry of Communications within 10 days and also fulfill the following criteria: it must contain a warning regarding the content, allow access only after checking the age of the user and show the number of times the website was accessed.

Pornographic material is defined as an object, engraving, photography, hologram, drawing, writing, imprint, logo, publication, film, video and audio recording, advertising spot, program or IT application, music or any other type of expression that explicitly presents sexual activity. ∫ Otilia Haraga

www.business-review.ro Business Review | April 11 - 17, 2011

8 NEWS AUCTION

MEDIA

Businessman buys philosopher Cioran’s manuscripts for EUR 405,000

George Brailoiu, owner of KDF Energy, is donating Cioran’s manuscripts to the Romanian state

B

usinessman George Brailoiu, owner of local energy consulting company KDF Energy, has bought through his company the entire lot of manuscripts belonging to Romania-born philosopher Emil Cioran. They were auctioned in Paris, going for EUR 405,000, according to Mediafax newswire.

The initial estimation for the value of the manuscripts was EUR 100,000.

Brailoiu announced that he would donate them to the Romanian state, continues the newswire. Some of the documents sold at the auction were Cioran’s BA diploma (EUR 17,000), and his BA thesis (EUR 8,500).

The manuscript of Cioran’s famous work The Transfiguration of Romania sold for EUR 20,000, The Book of Delusions for EUR 13,000 and Tears and Saints for EUR 8,000.

The Court of Appeal of Paris had recently ruled that Simone Baulez, an antiques trader, is the rightful owner of 37 of Cioran’s manuscripts. She discovered them in 1998 in the basement of the philosopher’s house, three years after his death. The total value of the manuscripts surpasses EUR 1 million, experts say.

However, the documents auctioned last week belonged to a friend of Cioran, the newswire continues, and are completely different from the 37 owned by Baulez.

The Romanian public television station TVR and the Carol I Central University Library of Bucharest (BCU) also took

part in the auction. They had each managed to purchase some of the auctioned manuscripts, until it was announced that a Romanian had bought the whole lot.

The event was organized by auction houses Binoche and Giquello.

Emil Cioran was born 100 years ago on April 8. The French Institute in Bucharest is celebrating the philosopher through the works of Dan Perjovschi, consisting of the graphic representations of 20 aphorisms

by Cioran.

Perjovschi’s creations were first shown at the French Institute and will be visible throughout Bucharest, in key locations, as well as in subway and bus stations in the Cioran on the Streets (Cioran in Strada) event, which will last until May 6.

Cioran was a Romanian philosopher and essayist, born in Rasinari, part of Sibiu County. In 1937, he left for Paris and never returned to his home country.

Skepticism and negativity characterize Cioran’s works, which mostly have an atmosphere of torment and torture. He is also a well-known critic of his home nation, whose hesitation and shyness towards life he often railed against.

Cioran published both in Romanian and French. His works include: On the Heights of Despair (Pe culmile disperarii), The Transfiguration of Romania (Schimbarea la fata a României), My Country (Mon pays/Tara mea), and Tears and Saints (Lacrimi si sfinti). ∫ Corina Dumitrescu

Local artist Dan Perjovschi has come up with graphic representations of Cioran’s aphorisms

WHO’S NEWS Gabriel Balaban has been appointed head of the project management & building consultancy department of King Sturge Romania.

He was previously partner at Gardiner & Theobald, and has over 14 years of experience in the construction/ real estate sector. His expertise extends to project & cost management, lender supervision, construction development management and building surveying, and

Sebastian Ghita files complaint against media mogul Vantu newswire Mediafax.

The company’s administration board accused Vantu of “heading a mafia group” and being “involved in organized criminal activities (money laundry, scams, blackmail, using physical violence etc.).

The Asesoft board announced it was willing to use “all necessary legal means” to preserve the EUR 10 million investment it has made in Realitatea Media and also demanded from state institutions “the protection of the life and physical safety of the board members and their families.”

In a previous press release, the administration board said it had acted for the benefit of Realitatea Media and did not interfere in the editorial policy of the TV channel.

On April 5, the administration board of Realitatea Media was called to analyze the execution of the management contract by Asesoft, represented by Sebastian Ghita.

There were also other reasons for the meeting. “Recently, the GM of Realitatea Media made a complaint after forged documents were used to close a spacerental contract between Asesoft and state company Coresi. A series of other managerial decisions endangered the activity of several business units in the group.

Businessman Sebastian Ghita Under the management of Asesoft, there were delays in the payment of debts to usinessman Sebastian Ghita, who the state budget, following which the acmanages the Realitatea Media counts of Realitatea Media were blocked. group via Asesoft International, has These are just several examples which filed a complaint at the Court of Justice represent an attempt to sabotage Realiagainst the owner of the media group, tatea Media,” continued the press reSorin Ovidiu Vantu, whom he accuses of lease of the media group. blackmail.

Last month, the administration board “During extremely tense meetings of Realitatea Media decided to replace the related to the management and editorial manager Catalin Popa and the editorial activity of the Realitatea Media editorial-in-chief of the news departgroup, Mr. Sorin Ovidiu Vantu and his asment, Madalina Dulama. On March 27, sociates insisted that we change the conVantu tried to evict Ghita from the building. The tensions were blamed on Ghita’s ditions of the management contract and attempt to limit Vantu’s alleged influence sign an additional document that would on the editorial policy of Realitatea TV. allow them to impose conditions in the A press release late last week by Ghieditorial activity. It was really surprising ta said that mass media pundits Emil for us to realize that after discussions Hurezeanu, Mihai Tatulici, Corina failed, Mr. Sorin Ovidiu Vantu and his asDragotescu and Roxana Niculescu would sociates decided to use totally immoral become part of the editorial board of and illegal means such as blackmail and the Realitatea Media. ∫ threat,”said Asesoft International in a Otilia Haraga press statement that was sent to local

B

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 includes all types of properties.

Corina Mica has joined Omnicom Media Group Romania as PR & communication manager. A graduate of the Journalism and Communication faculty at the University of Bucharest, she has almost 15 years of experience in the industry. She has worked as advertising sales manager with Action Global Communication and as new business

manager for Loco Branding & Communication. She was an editorial consultant for The Diplomat Bucharest, and editorial consultant and chief editor at BBW.

Guglielmo Frinzi has been re-elected president of the board of directors of the Italian Chamber of Commerce. Frinzi, president of Forte Asigurari, will serve alongside vice-presidents Roberto Scagnoli, from Rartel, Finmeccanica Group, and Roberto Musneci of Serban & Musneci. Carlo Barban from Winmarkt, Coop Italia, will be the cham-

ber’s treasurer. Other members of the board are as follows: Franco Aloisio (Parada foundation), Lucian Stefan Cumpanasu (Tonucci & Asociatii), Roberto Fiorini (Unicredit Tiriac Bank), Gianluca Gori (IR Colours), Adrian Constantin Marin (Generali Asigurari), Mirco Maschio (Maschio Gaspardo), Alessio Menegazzo (Enel Romania), Armando Marco Sala (Banca Intesa San Paolo), Giulio Simonelli (Banca Italo Romena), Camillo Torta (Prival Ecvologic Servis), and Luigi Zaccagnini (OMA Romania).

www.business-review.ro Business Review | April 11 - 17, 2011

TALENT 9

The business doctor The consultancy industry is a pretty crowded market at present but Cristina Donoaica sees this as an opportunity to develop rather than a threat. Her main goal is to ensure that her company can continue to adapt to the various demands from the local business environment. ∫ ANDA SEBESI

anda.sebesi@business-review.ro

COMPANY PROFILE Koson Servicii Financiare Established: 2007 Number of employees and collaborators: 12 2011 estimated profit: EUR 100,000 Portfolio of services: solutions to increase businesses, financial sources to develop companies, developing human capital, etc.

Photo: Laurentiu Obae

Cristina Donoaica decided to become an entrepreneur in 2007, when she set up her own company, Koson Servicii Financiare.

She chose to build a business on a very specific niche: financial and strategic management consultancy mainly for small and medium companies. Her professional background helped her in the process of creating her own firm as she had spent many years working in the venture capital and private equity industry for GED Capital Development.

“For more than eight years I worked to increase the value of the companies from the fund portfolio, to make new acquisitions and to sell those companies that the fund had exited from,” details the managing partner.

The idea to set up Koson Servicii Financiare came as a natural step for Donoaica, who was driven by the idea that times are permanently changing.

“Plus, I am a supporter of change. And by chance, my shift was in keeping with the changes caused by the current economic downturn,” says the businesswoman. A favorable economic context helped her build her business, as venture capital and private equity investments have always been and still are difficult, she believes. “From 2006-2008 all companies made great strides, mainly because of the explosion of consumption on the local market and of corporate credit offered by lenders. In fact, the speed of development meant companies neglected to think about the fundamentals of their business.

As a result, the current downturn reminded them that there is no substitute for added value,” says Donoaica of the way her firm came into being.

As a business consultant, the managing partner says her company has faced many and varied challenges so far. And the nature of the service-based industry can make it difficult for her customers to see the tangible benefit of consultancy activity. This is probably one of the main hurdles for Koson Servicii Financiare at the moment. “Companies have only been using consultancy services for the last few years and so it is difficult for them to measure their benefits. Besides, the process of creating value for a company is similar but not the same regardless of the field of its activity,” says the businesswoman.

Another characteristic of the local market is that companies only avail themselves of consultancy services when their financial situation becomes critical.

This is not the ideal approach as it significantly diminishes the ways of intervening and recreating value for a company. “In some cases, restructuring under the protection of insolvency law can offer a way out. But it is hard and the results are unpredictable,” cautions the consultant.

Her education and professional experience played a major role for Donoaica in developing her financial and management consultancy firm. But these alone were not enough to succeed. “It is clear that aplomb and determination are things that cannot be taught. Either you have them or the context forces you to discover them,” says the businesswoman. Like many entrepreneurs, she is a proponent of the MBA course as a means to gain perspective on businesses approaches. “During an Romanian-Canadian MBA program you have the opportunity to test your own ideas and to learn in a short time and without costs what determined their success or failure. Plus, an MBA helps you to develop a managerial culture rather than an entrepreneurial one. But despite this, in the current economic context the two components complement each other,” argues Donoiaca.

The entrepreneur decided to set up a business on a pretty crowded market, split between the so called big four – which have a significant combined market share of the management consultancy scene – and many other smaller specialized players.

“It is well known that small companies, like mine, offer some significant benefits for their customers such as a rapid response to their requests and a more targeted and clearer support of their activity,” says the consultant. She adds, “As for available resources, small companies benefit from the development of communication technologies that facilitate many of the specific processes of consultancy activity such as conducting high quality market research and working in virtual teams of consultants involved in a specific project. This is why small consultancy companies gain ground, and not only at local level.”

Asked about her future plans for Koson Servicii Financiare, Donoaica says that the most important goal for her is to maintain her capacity to adapt her business to the different requirements of the local business environment. “We intend to do this by attracting experienced and highly skilled consultants and coordinating them in order to be able to offer the maximum created value for our customers,” concludes Donoaica.

Cristina Donoaica is drawing on her experience in the venture capital and private equity industry

www.business-review.ro Business Review | April 11 - 17, 2011

10 FOCUS

Courtesy of Dreamstime

Bean and gone: though Romanians are keen coffee drinkers, consumption has fallen since the recession hit

Bitter market is a grind for coffee companies Coffee is one of the last products that consumers cross off their shopping lists when they start to tighten their belts but, even so, Romanians drank fewer cups of the stuff last year. With the overall downward FMCG trend, a surge in the international price of coffee and an unfavorable domestic fiscal regime, local players are expecting another year of small beans in 2011. In addition to percolating more promotions, they will have to brew up new ways to make the market wake up and smell the coffee. ∫ SIMONA BAZAVAN Romanians drink on average roughly 2.3 kg of coffee each year, with the figure decreasing in recent times. Nevertheless, coffee makes for a special case when it comes to the FMCG market. It is often regarded as nothing short of essential by many consumers, who are reluctant to cross it off their shopping lists.

This kept the decline in the local coffee market to only 3.7 percent in volume last year against 2009, Raluca Raschip, consumer tracking director at GfK Romania, told Business Review. However,

there are considerable differences among varieties. “If we refer solely to ground coffee, the packaged segment remained constant while bulk coffee dropped by 15 percent in volume,” she said, adding that instant coffee suffered the highest fall.

Competition between local coffee firms is fierce, with five players controlling over 80 percent of the market. Kraft, Strauss, Nestle, Cia Iguacu Brasil and Tchibo had an overall 84.2 local market share (by value) last year, according to Nielsen Romania. Focusing on brands, Jacobs, Doncafe, Nescafe, Amigo and Fortuna had a 77.3 percent share (also by value) in 2010, according to the same source.

Local companies also have to deal with a lively black market trade. “The Amaroy brand, which is the exponent of the black market, is the second biggest brand on the ground coffee segment. Although it can be found in some retail networks, its main distribution channels are traditional retail and the black market,” said Raschip. In 2010 about 17 percent of Romanian households purchased this brand, the share having increased progressively over the past six years, she added.

Romanians mostly like to buy their coffee from hypermarkets. According to the ShopperTrends survey put together

by Nielsen, last year 43 percent of shoppers used this channel (2 percent less than in 2009), 22 percent bought their coffee from supermarkets (-1 percent), 3 percent from cash&carry stores (-1 percent) 17 percent from discount stores (+2 percent), 9 percent from traditional groceries (+2 percent) and 3 percent from kiosks (the same as the year before).

Overall, brand loyalty declined last year for FMCG but coffee remains one of the products to which local consumers remain faithful. When their favorite brand is not available on the shelves, 46 percent of local buyers would purchase the same product but from a different store, eight percent would wait for it to become available, another eight percent would buy a different variety from the same producer and 38 percent would try another brand, according to the Nielsen’s ShopperTrends 2011 survey.

The challenge for coffee firms this year will be to handle the increasing cost of green coffee. “The rise in the price of coffee, which has almost doubled since last year, the government’s decision to maintain coffee duty excises (…) and the market’s overall decline will be the main challenges this year,” Doina Cavache, corporate affairs manager at Kraft Foods Romania, told Business Review. She added that so far, in the first quarter of 2011, the market continues to shrink, and hopes are that for the coming period the situation will at least stabilize.

At the end of last year the Finance Ministry announced plans to maintain

www.business-review.ro Business Review | April 11 - 17, 2011

FOCUS 11

Courtesy of Nestle

Courtesy of Kraft

Courtesy of GFK

Raluca Raschip, consumer tracking director at GfK Romania

Doina Cavache, corporate affairs manager at Kraft Foods Romania

coffee excises in 2011 at the same level as Despite the dip, coffee consumption the previous year, although the Fiscal has held up better than other FMCG catCode stipulated that from this year they egories, but consumer behavior is in flux. would be removed. For a ton of green cof- “We have noticed several changes in the fee beans the excises amount to EUR 153, consumption of various coffee varieties. for roasted coffee they reach EUR 225 per Consumers are giving up the habit of ton and for soluble coffee EUR 900 a ton. drinking several coffee types during the Sugar price increases and last year’s same day – roasted and ground in the VAT hike have also taken their toll. “The morning, soluble coffee at the office and price of coffee products has been influvarious specialties in the afternoon – and are generally shifting towards the traenced by a series of factors such as more ditional coffees, roasted and ground,” expensive raw materials – coffee but Cavache said. sugar as well – and higher packaging This year she says that Kraft Foods, costs. At the same time, the coffee excise which owns the Jacobs and Nova Brasilduty and VAT increase to 24 percent are ia brands, will further invest in its portalso felt in the product’s final price,” Ana folio. Promotions are in the cards this year Maria Doxan, business manager for bevalso for Kraft. “Promotions are generalerages at Nestle Romania, told BR.

Ana Maria Doxan, business manager for beverages at Nestle Romania ly of great interest to consumers. The economic context of the past two years has brought about changes in consumer behavior and the decision to buy,” Cavache added. Currently the company is running the “Because you give, you receive!” campaign (Pentru ca daruiesti, primesti!) which features promotional packages that include, alongside Jacobs coffee, Milka chocolate and a gift – a brooch, a scarf or a shopping bag. Company representatives will visit 30 cities handing out shopping vouchers to people who wear the accessories.

Promotional campaigns are also on Nestle’s to-do list this year with the second run out of its “Anti-Boredom” campaign (Anti-Plictiseala). In 2011 the com-

pany also plans to invest in recently launched products such as Nescafe Green Blend and to focus on the coffee mix segment, with its Nescafe 2 in 1 and Nescafe 3 in 1 products. Overall, Doxan sees “growth on the instant coffee mix segment as this has seen a very dynamic evolution in the past years.”

Consumer behavior changes over the past year have seen people staying in rather than spending money on going out.

In line with this trend, Nestle also intends to invest in launching new models of the Nescafe Dolce Gusto machines and new coffee specialties.

Elsewhere, Strauss Romania, owner of the Doncafe brand, announced last October EUR 4.5 million investment in a new communication campaign. The firm said it expects a turnover of around EUR 60 million in 2010, similar to the results obtained in 2009. Strauss Romania, the local branch of the eponymous Israeli group, has been on the Romanian market for 15 years, initially with the Elita coffee brand, which was repositioned in 2008 as Doncafe.

simona.bazavan@business-review.ro

3.7 %

volume decrease of the local coffee market in 2010 compared to 2009

www.business-review.ro Business Review | April 11 - 17, 2011

12 LINKS

STOCKEXCHANGE

I want you back: guarding data from disaster It has lately become abundantly clear that nobody is safe from Mother Nature’s mood swings, so the question for businesses is: what can you do in terms of damage limitation? Aside from exacting a heavy humanitarian toll, a natural disaster poses major economic challenges and getting back to normal also depends on data recovery. How many companies are prepared for the loss of their data? Do private and public economic players have a data backup and recovery strategy? And what risks do they run if they don’t? BR looks at the options. ∫ OTILIA HARAGA “We already know that information offers its owner a strategic and competitive advantage. In one way or another, information is stored as data and the need to protect it in order to ensure business continuity is a given,” Liviu Bratu, chief technology officer of New Tech Consulting, tells BR. In Romania the most popular data storage service is website hosting, whether in the form of a dedicated server or external hosting, according to Bratu.

In developed countries, there is “a different culture, a different sense of ownership and a different level of maturity.”

The services offered in other countries’ data centers do not differ very much from what a local data center will offer, but the trend there is to offer anything as a service.

“In developed countries we can already speak about services in the cloud.

The need to access applications easily from anywhere has always existed, and in the context of cloud computing, the frontier between home and office is nearly wiped out,” says Bratu.

More than 50 percent of large organ-

izations in Romania are concerned that their backup windows leave some exposed data, risking data loss. “Most companies aim to reduce the duration of data backup and recovery in case of a disaster,” Dania Selaru, country GTS manager at IBM Romania, tells BR. There are of course differences among how ready various players in Romania’s economy are for such a pessimistic scenario: as a rule, a large corporation will be more prepared to face a disaster than an SME or a public institution.

“A natural disaster could have devastating effects. The complete loss of data is unlikely for large companies. We estimate that two thirds of firms could have difficulties in recovering their data, without affecting their business processes.

However for public institutions things can be worse, especially for local ones,” Dinu Bumbacea, partner and leader of the management consultancy department at PwC Romania, tells BR. Most corporations do data backup at one point in time or repeatedly. “For a large company, the lack of backup is pure recklessness. However, many of them do not have a real solution for recovering their data in case of a disaster,” Dragos Manac, CEO of Appnor MSP, a managed service provider that hosts and integrates cloud computing solutions, tells BR. For SMEs, the situation is worse.

“SMEs often ignore the need for backup.

Statistically, the chances of being affected are relatively low when we’re talking about a small amount of data. However, on the long term, even small companies will be affected by the lack of backup when data loss occurs,” he adds.

These smaller companies usually follow a similar path. “We are all familiar with the profile of the companies that hire an inexperienced junior to be in charge of everything related to IT. Often, this expert will not be sufficiently prepared to consider such criteria as how frequently data should be backed up, how fast it can be recovered, and whether it is stored in another location,” says Selaru.

A large corporation will generally choose to do backup on local systems using its own resources, while other companies may opt to replicate their data in a high-security location such as a data center.

“In Romania, data centers have appeared relatively recently and very few offer the option of dual location,” says Bumbacea. Standards in force stipulate that such sites should be a sufficient driving distance between two different seismic areas in order not to be affected at once by the same disaster.

The preferred method in Romania is collocation: companies benefit from the infrastructure of the data center and rent a security area where they place their own equipment, and the client’s IT teams will be in charge of the administration and configuration.

In more developed countries, the service package can be much more complex. “As an example, when choosing an e-mail service, the client will be interested that performance, resilience and security criteria are observed, but technical aspects such as the type and number of services that are used or the backup method will be the responsibility of the supplier, who answers for the quality of the services offered,” says Bumbacea.

A data center will offer a company that

wants to store its data safely a few advantages, such as electricity, systems of climatization, and uninterrupted connectivity and physical security. It may also save money, as due to the large volume the cost per storage unit or per square meter of space will be lower, while the company will no longer have to invest in dedicated IT infrastructure. Instead, it can use the concept of IaaS (Infrastructure as a Service) and rent the equipment it requires. “The direction in which the IT services industry is going is clear, the model being cloud computing: software as a service (SaaS) and IaaS”, says Bumbacea.

Last but not least, each case is treated separately, reflecting the client’s needs.

By resorting to an external supplier, the client will pay a monthly tax and avoid making investments in technology and space to store the data.

The question of limited resources is a valid one, given that by-the-book data storage will require investments that firms are just not ready, willing or able to make. “Companies cannot provide the availability and security levels of CyberHost from their own resources. This would mean injecting in the midst of an economic crisis tens or hundreds of thousands of EUR of investment (Capex) which is not justified. The time to instal and put into use the architecture would also be significant – it can take months – while the cost of maintenance and utilities would be higher,” say Romtelecom officials.

The operator has opened three data centers, in Bucharest and Brasov, with 1,000 sqm of capacity, into which it has invested “millions of EUR”.

Romtelecom has up to 100 customers for CyberHost services, mainly from the financial and banking sectors, IT&C companies and others. The biggest customers are multinational companies on the local market.

The firm’s most sought after services relate to collocation, while in other countries the most popular services are managed ones (outsourcing).

“Our Bucharest locations have reached 99 percent occupancy so we are currently directing customers towards the location in Brasov, where we still have capacity available,” say representatives.

Company officials claim that there has been no security condition requested by customers that it hasn’t been able to fulfill so far. “Romtelecom offers specialized disaster recovery solutions in data centers in different geographical areas (200 km apart),” they say.

The issue of where the data is stored geographically also matters. “In a major disaster, I estimate more than half of the local companies would be affected, for two reasons. Firstly, their data is stored locally or very nearby. Secondly, most large companies have their central office in Bucharest, a highly exposed area. This is why we offer data replication in Amsterdam, London or Washington DC,” says Manac.

Appnor MSP will open a unit this summer in north Bucharest. “It will not be a public collocation data center; we will use it to offer our clients managed and cloud computing services. We estimate that 75 percent of the infrastructure will be ours while the rest will be hybrid projects, says Manac. The total investment over the coming years will be around EUR 2 million. “We will start in

www.business-review.ro Business Review | April 11 - 17, 2011

LINKS 13

only to a closed group of clients. Data replication and disaster recovery solutions are provided via technologies such as VPN, MPLS and even with dedicated video connections (dark fiber).

Last year in October, IBM signed a deal worth several millions of USD with Petrom for data center services. The data center has 1,000 sqm for storing servers, which does not include the communication suppliers’ equipment, for which there are separate dedicated areas. Auxiliary systems such as diesel generators, UPS systems with batteries, fire extinguisher as well as space for unloading, unpacking, installation and storing make the rest of the site, of approximately 2,500 sqm. For the most part, clients of the IBM data center are from finance & banking

Dania Selaru, country GTS Manager IBM Romania

and oil & gas. All existing customers are active in Romania but potential clients could come from CEE. The IBM data center has sometimes had to adjust to special requests. This has included installing additional protection in the areas dedicated to that client, such as metallic cages. Other demands the company has received were dedicated systems for video surveillance and access control. The center uses anti-seismic platforms so that it can alleviate, or even eliminate, the effects an earthquake may have on the equipment it stores, says Selaru. “Ultimately, an organization is only as protected as it has prepared to be.”

otilia.haraga@business-review.ro

Courtesy of New Tech Consulting

stages because we cannot make a clear estimation of the degree of occupancy over the next year,” he says.

The center will host 1,000 servers, 40 high-density racks, a contained cooling-system, and an electric charge of up to 10 KW per rack. “At the moment there are no high-density data centers in Romania, and we believe in this concept, due to the energy efficiency it brings,” says Manac.

The clients will be medium and large companies. They could operate in the technology sector, including small companies, because they are large consumers of IT services. Apart from standard conditions of access and monitoring, racks have an individual code and are monitored via video. Access will be allowed

Dragos Manac, CEO of Appnor MSP

Courtesy of IBM

Photo: Laurentiu Obae

Courtesy of IBM

IBM’s data center is located in the Petrom City Campus

Liviu Bratu, CTO of New Tech Consulting

www.business-review.ro Business Review | April 11 - 17, 2011

14 MONEY

Beleaguered banks and borrowers look to debt restructuring In fear of not seeing a cent from their multi-million euro debtors, banks and their borrowers are turning towards corporate loan restructuring, which has soared to billions of euro in Romania. But banks remain keen to claw back every available cent. Specialists say this year could see private equity funds step in to suck up the businesses they consider worth saving. ∫ DANA VERDES

Mihai Dudoiu Tuca Zbarcea & Asociatii partner

Courtesy of Musat & Asociatii

Courtesy of Tuca Zbarcea & Asociatii

Iuliana Craiciu Musat & Asociatii partner

Courtesy of Popovici Nitu & Asociatii

Courtesy of Salans

Lawyers describe several situations. According to Burz-Pinzaru, loan restructuring may be on the table when the borrower defaults on some of the essential provisions in the contract.

Mirela Iovu CEC Bank vice-president

Courtesy of Reff & Associates

When is loan restructuring used?

Courtesy of CEC Bank

“We started to restructure a loan back in 2008 and it is currently our longest ongoing restructuring case. The loan – in the region of EUR 100 million – which involves several borrowers, is expected to have a positive outcome next month.

And it is not the largest restructure we have handled. That one was slightly below EUR 200 million,” Andrei Burz-Pinzaru, partner at Reff & Associates, tells Business Review, adding that the volume of restructured corporate loans which his firm manages reaches half a billion euro.

It is no secret that when confronted with a national recession combined with a credit crunch, many firms have faced difficulties in coping with debt over the past two years. This resulted in a dramatic shift of focus in banking practices, from new money deals to restructuring, specialists say.

And the figures support this. “We provided assistance in notable restructuring deals in excess of EUR 1 billion last year, an increase of some 40 percent in value compared with the previous year, when this trend had just begun,” Iuliana Craiciu, partner at Musat & Asociatii, tells Business Review.

Mirela Iovu, CEC Bank vice-president, adds, “Last year the bank’s percentage of restructured company loans reached 10 percent, similar to 2009’s results.”

Although there are no market statistics on the total value of restructured loans – as the parties involved in these processes are reluctant, for obvious reasons, to make public the information – lawyers say that the total volume could reach roughly EUR 10 billion.

Large corporate restructurings are expected this year as well, specialists say. “Currently, there is a more positive outlook for the credit market, especially in sectors such as energy or infrastructure projects. Nonetheless, we do not expect 2011 to be the end of the restructuring trend, but we would rather see new restructuring mechanisms, rarely tested so far, like the sale of toxic assets or even debt-to-equity swaps,” said Craiciu.

Experts say that there are discussions in the market of potential interaction between private equity funds, banks and borrowers regarding restructuring.

Andrei Burz-Pinzaru Reff & Associates partner

Magdalena Raducanu Salans managing counsel

Alexandru Ambrozie Popovici Nitu & Asociatii partner

“Any loan agreement has certain key performance indicators, which reveal how healthy the borrower is and how able to repay the debt. When the crisis hit, these financial indicators were compromised and in the vast majority of cases no longer met by firms. This raises a red flag for lenders, which find themselves in the situation of analyzing if this is a temporary situation or a systemic deterioration of the borrower’s financial situation. This is one standard case in which the lender and the borrower must sit down and consider the restructuring of the loan,” says the Reff & Associates partner.

Another case, he adds, is when the loan maturity is reached. “For example, we have seen cases of real estate refinancing projects where the maturity was quite short and there was no way the borrower could have repaid the loan from its own funds but only through subsequently financing. Now, because of the crisis, financing with another bank is very difficult and all the parties will consider restructuring the loan,” says BurzPinzaru.

Lawyers also cite dramatic cases such tractors, designers, tenants, lenders and those that involve other creditors – aside ultimately consumers. from the bank – that become aggressive “Generally, borrowers are having a hard because they do not get their payments time making the required payments to and so sue the borrower or, even worse, lenders and their counterparties. Also, apply for its bankruptcy. they are encountering difficulties in col“We have a big problem in Romania in lecting amounts owed to them, which my view, as bankruptcy is used as a leads to negotiations with various parties blackmailing tool. The law and the courts and sometimes – more frequently lately should be much tougher on abusive in– to disputes. The lenders have a difficult solvency claims. This is an additional job in assessing all such events of nonpressure point in restructurings,” says the payment or disputes, in order to decide Reff & Associates partner. if the restructuring process is worth giving a try,” Madgalena Raducanu, managing counsel with Salans, tells BR. Which areas are worst hit?

After real estate, lawyers say that All businesses are in the process of restructuring loans in one way or another, SMEs have been in big trouble as they have been severely hit by the crisis. say specialists. Real estate finance continues to be a real problem for banks, because it is very difficult to foresee the fuHaircuts, the final frontier ture and the market’s trajectory.

Haircuts, or debt forgiveness, are not a In real estate financing, developers very common practice on the Romanian have suffered due to the credit crunch: market, specialists say. the lack of financial resources as well as “Yes, there are exceptional situations when we have agreed to reduce the debts the resulting decreased appetite for of certain clients, by no more than 50 pernew investments have generated chain cent,” said Gianina Lazanu, manager of reactions. It has affected investors, con-

www.business-review.ro Business Review | April 11 - 17, 2011

the large debts recovery department at BRD, speaking at an event about insolvencies. Turning to the size of the loans, she added, “EUR 10 million is too much.

Compromises are made along with another three-four banks and up until now there have been fewer than 10 cases.”

Why would a bank agree to such a measure? It’s all about the numbers, as . in the event of bankruptcy, lenders recover just 30 percent of the loan, and as such a haircut can be a way out.

“It is used when they realize they cannot recover the full loan from the borrower. Then they say: ‘why reschedule and pretend that we are going to get the full amount?’ They agree to write off a certain amount from the loan which will give the company a push towards recovery,” explains Burz-Pinzaru.

The A-Z of restructuring Lawyers say that borrowers looking to implement a loan restructuring process need to be prepared to find additional funding to comply with creditors’ and banks` requirements in this respect, reach a consensus among multiple creditors, draft a viable restructuring plan from a business perspective and provide a new or improved security package.

“From a legal perspective, the scope of work in a restructuring process usually involves several steps. First is the diagnosis phase, the performance of a thorough review of all the financial documents and ancillary documentation, including the borrower’s constitutional documents and legal status,” Mihai Dudoiu, partner at Tuca Zbarcea & Asociatii and co-head of the firm’s banking and finance practice group, tells BR. He adds: “Another phase regards restructuring strategy – establishing this by taking into account the options available depending on the profile of the borrower’s financial indebtedness, as well as the drafting of all related documents and assisting in subsequent negotiations with the other parties involved. Afterwards comes the implementation phase – conducting the restructuring process and, finally, disposal of non-performing loans, if need be.”

The borrower’s eye view The process has both advantages and disadvantages.

“Restructuring will give a very good understanding of the company’s capacity to generate cash flow. And, obviously, at the end of a successful restructuring a company will have a financially viable operation and the creditors will have a well performing client,” outlines Marius Zidaru, director, business recovery services leader at PwC Romania.

Alexandru Ambrozie, partner at Popovici Nitu & Asociatii, adds, “The substantial advantage of the mechanism is that the company will not only escape the insolvency procedure, but be able to avoid the distressed sale of its assets.”

On the same theme, the Musat & Asociatii representative points out that restructuring where the debtor is not insolvent may provide benefits such as a short-term grace period, rescheduling, the refinancing of one or several loans via a new credit facility, short-term bridge loans and a stand still period.

But all this comes at a cost. “Aside from the immediate benefits which are new financial terms, the restructuring will

MONEY 15 often involve additional obligations on the debtor, such as new financial covenants, operational restructuring such as the sale of non-core assets or disposal of obsolete merchandise, corporate restructuring – considered with a larger group of companies, due to the need to simplify and centralize the decisionmaking process e.g. via merger, and, last but not least, new or additional security created to cover for the shortage resulting from business devaluation,” says Craiciu.

According to the PwC Romania director, the most significant drawback is that the shareholders and management might lose control in the decision-making process, as creditors will generally impose certain covenants that the company must comply with as part of the restructuring agreement.

Central Bank contemplates debt-to-equity swap The National Bank of Romania (NBR) has resumed discussions on a draft reg-

ulation concerning the temporary holding of shares within financial assistance or restructuring of a non-financial entity.

According to market specialists, the main benefit of this draft regulation is that it will equalize the position of banks in comparison with other creditors.

“Essentially, it allows the bank to hold shares in a non-financial debtor, when the shares are issued in exchange for debt, which is thus cancelled. Such holdings will be temporary up to 36 months,” says Craiciu.

Experts point out that the exit mechanism is not regulated and therefore may be flexible. The lender’s exit may involve, for example, assignment for a preagreed value to the sponsor or to a third party by way of a put/call option.

“In the hypothesis that a lender will assume such a mechanism, it is presumed that it will be obliged to apply all diligences in order to make profitable the debtor whose shareholder it will become through the mechanism, because the investment return and its recovery will

begin with the distribution of earned profits, but banks are not built to provide management,” says Iovu.

Musat & Asociatii lawyers tell BR that restrictions are applicable, such as the requirement to draft a viable restructuring plan to be endorsed by the central bank and producing evidence that the debt-toequity swap is the only measure available to ensure debt recovery.

Yet, banks are not keen the bank’s exposure to the debtor has to be in excess of 60 percent of the debt.

A potential pitfall for banks, say lawyers, is that by the debt-to-equity swap, the bank loses its secured creditor’s rights. In the event of insolvency, the bank’s involvement in the management of the business may trigger directors’ liability issues if it can be proven that measures approved by directors nominated by the bank lead to insolvency.

The draft regulation detailing the conditions of the banks’ debt-to-equity swap was formally endorsed by the Central European Bank in December 2010.

www.business-review.ro Business Review | April 11 - 17, 2011

16 BALANCE

ing aid directly and have the motivation to enter the process of psychotherapy and to achieve change or increasing functionality for a specific goal.”

So how much will all this set you back? Psychologists’ fees vary depending on aspects such as experience, skills and specialization, as well as the type of intervention or approach used, the employment of tests, and the duration or objectives of treatment, and can be negotiated, says psychologist Martin Szalai on his website. Specialized treatment can cost from RON 50 to 300 or 400. But the average cost is about RON 50-100. Pagu notes that the fees are set in accordance with the tariffs recommended by the Psychologists’ College of Romania (Colegiul Psihologilor din Romania, COPSI). For a psychologist to be awarded the right to free practice, he or she must pay a yearly fee of RON 250 per year, which also indicates COPSI membership.

A session lasts around 45-50 minutes, say most specialists, while the duration of the course and frequency of sessions vary. Treatment may run from a handful of sessions to years. “There are psychotherapies focusing on a certain syndrome, as well as ones assisting the patient with a comprehensive approach, which may focus on more than one issue,” says Tanculescu. Patients sometimes focus on a small selection of their total problems, she continues.

KEY NUMBERS Local mental healthcare services RON 50-100 is the average cost of a therapy session, but it may reach several hundred, depending on the specifics 900 Romanian psychotherapists are registered in 30 affiliate associations at the Romanian Federation of Psychotherapy

STOCKEXCHANGE

Analyze this: psychologists lend ear to skeptical market In a country where even going to the doctor is a last resort for many, seeing a psychologist is widely frowned upon. However, depression and anxiety are common problems, specialists say, and seeking professional help should be encouraged, not seen as a source of embarrassment. Therapists are also keen to flag up their role as life coaches or advisors, as well as in times of crisis. ∫ CORINA DUMITRESCU Run an internet search for a local psychologist or therapist, and you will find numerous hits. Put a call in, and it seems that many are fully booked, so demand surely exists on the local market. However, ask the man or woman on the street whether they would see a therapist, and many would take offense at the suggestion that they had less than perfect mental health. So, how long will it take for the profession to earn the esteem in which it is held in the United States, for example?

“It is difficult to say. I think some time needs to pass until psychotherapy is as big here as it is in the US. Let us not forget that in better developed countries than Romania, a large number of psychotherapeutic services are supported through the health insurance system, which is not the case in Romania,” says Lavinia Tanculescu, manager, HR consulting servic-

es, at PwC Romania, who also has a private practice in psychotherapy.

But Daniel Pagu, psychologist at the General Directorate of Social Assistance and Child Protection in Bucharest’s Sector 1, who focuses on people with disabilities and also runs a private practice, is more optimistic. Does psychotherapy have the same potential as in the United States? “It most certainly does. People are becoming more and more preoccupied with themselves and the way they function in terms of their surroundings, themselves, the environment, nature, spirituality, and the way they live – they feel this,” he says. Pagu’s focus on faith can be traced to his bachelor’s degree in Theology, from the University of Bucharest.

This aspect of his professional philosophy is relevant, since turning to priests for moral advice has a long tradition, in Romania too.

Similarly, Tanculescu argues that a therapist’s job goes beyond the clichéd

image of the passive listener taking notes from the patient on the couch. “Patients seek a therapist’s help for many reasons, including for personal development. It is not necessary to have a clinical diagnosis for the difficulty you’re facing, only to want to work on your condition and improve it.” Pagu agrees, adding, “People come with the desire to discover and develop themselves personally, in cognitive, emotional and affective terms. They also turn to psychotherapy from a desire to identify and overcome personal and professional blockages.”

Pagu adds that, in his experience, the discipline is regarded positively, contrary to popular belief. However, he has often found himself faced with the psychologist/psychiatrist/psychotherapist confusion: “In the early stages of some cases, people who come to therapy say they do not have problems and do not need help. But usually, those who present for therapy are people who are seek-

A portrait of the Romanian patient Various studies and research give an idea of local people’s levels of contentment, with which their finances are closely entwined. Almost half of Romanians are satisfied with their lives, 30 percent less than the European average, according to a Eurobarometer poll released in March 2011. Some 46 percent of Romanians are happy with their lot, while only 4 percent think that the country’s economic situation is good. According to research done in the fall of 2010, 94 percent of Romanians described the country's economic situation as bad or very bad, compared to 90 percent at the beginning of last year.

The survey was conducted on a sample of 1,001 Romanians between November 11 and December 1.

In a study carried out by the Legatum Institute, an Arabian institute located in London, and quoted in the local press, Romania ranks 51st in a classification of the happiest countries in the world.

Though it may seem a lowly spot, this is in the top half of the table. Romanians therefore have an average degree of satisfaction, at 5.4 points out of 10. Some 53 percent of local people consider themselves safe in their country, but a mere 15 percent trust one another, found the study. The five happiest countries are Norway, Denmark, Finland, Australia and New Zealand. The main indicators used in this study, which also reflects the most prosperous countries, are people’s general health, their social independence, family cohesion, friendship, democracy and freedom of speech. The research covered 110 countries, 90 percent of the world’s total.

According to another study, this time by the Romanian Association of Psychiatry and Psychotherapy (Asociatia Romana de Psihiatrie si Psihoterapie, ARPP), women in Romania are twice as depressed as their male counterparts. The

www.business-review.ro Business Review | April 11 - 17, 2011

BALANCE 17 great focus should be placed locally on organizations’ degree of health a whole, with particular emphasis on employees.

Work stress should also be paid due attention, as it translates into high absenteeism rates and loss of staff, which cost companies money.

School for shrinks Courtesy of Daniel Pagu

Daniel Pagu, psychologist ARPP in conjunction with the Romanian League for Mental Health therefore decided to launch the program “You’re not alone. You’re not the only one,” through which conferences are organized nationwide on the effects of depression on people’s quality of life. According to ARPP data, a third of Romanians suffer from various forms of depression, but less than half of them seek professional help.

Pagu outlines the most common issues facing the Romanian patient. “It is typically about adaptation. I can say that stress and anxiety are the main reasons why people end up in the office.” This stress can stem from “dissatisfaction with the self, others or the environment, and the lack of fulfillment of needs (in terms of clean air, water, rest, food, exercise, hygiene, love, spirituality).”

Tanculescu believes that the Romanian patient is no different from that of any other country. But she emphasizes that

The Romanian education system is often criticized – unfairly so, say both experts, who were schooled in their profession locally. Tanculescu is a graduate of the Psychology and Educational Sciences department of the University of Bucharest, and has two master’s modules – one in Psychodiagnosis and the other in Analytical Psychotherapy. She is currently taking her PhD in clinical psychology at the Babes Bolyai University in Cluj and has also been a member of the Romanian Association of Analytical Psychology.

Pagu, meanwhile, has a bachelor’s in Theology, from the University of Bucharest, and graduated from a master’s in Psychology at the Babes Bolyai University in Cluj. He studied at the Romanian Institute of Integrative Psychotherapy, and holds a certificate in Rational, Emotive and Behavioral therapy from the Psychology University in Cluj and the Albert Ellis Institute in New York. “Fortunately, says Pagu, “in Romania, we have many schools of psychotherapy, so that anyone can choose the most suitable one”. Tanculescu however puts the focus on vocation, personal knowledge and self-analysis. A psychotherapist must love people, she concludes, to become a true professional.

corina.dumitrescu@business-review.ro

www.business-review.ro Business Review | April 11 - 17, 2011

18 CITY RESTAURANT REVIEW

FILM REVIEW

Meat me for a steak

Biutiful

The Steakhouse at JW Marriott, tel 021 403 1010 MICHAEL BARCLAY

Photo: Laurentiu Obae

Well, if you think that a steakhouse is nothing more than a restaurant serving steaks, let me disillusion you. For the steak market in Bucharest is the only restaurant sector in this wretched, Balkan, gastronomic desert of Romania which has grown and matured to an acceptable European standard.

To be fair, the market owes it all to the Intercontinental, who opened the first steakhouse eight years ago importing Argentinian beef. It was a first for the city, and it was so successful that soon the Beefing up the gastronomic scene: The Steakhouse at JW Marriott market was saturated with beef from Argentina and Brazil. But so what! Anything at that time was better than Roican names attached to each dish, somemanian beef, which has improved so fect.So there is a ‘New York Strip’, a perthing I find irritating. But that is just me, fect fillet with a rich band of exterior fat fabulously since those days that some Robecause I love the English language. in which to cook it. Then a Kansas City manian beef is better than the South Americans have struggled with it American import!

Strip’, an excellent strip loin cut rethroughout their entire history.

So the era of Latino beef is over. The splendent with both bone and marble.

So there is a side dish of ‘Mac and public is now too astute to accept that All of the produce is imported from Cheese’ and a dessert named ‘Whopee South American, bland, average and flathe USA, which means you get big, big Pie and Milk Shake.’ This, to me, is baby lanvorless rubbish is of premium quality and American sized portions. The steaks are guage, but nobody feels silly in the USA savvy diners have now turned to genetaged for 21 days at 4 degrees before you talking like this. But the result of those two ics as the benchmark of quality rather get your teeth into them.This is both dishes is simply excellent, so the next than the country of export origin. necessary and absolutely correct to tentime I go there I will order by pointing at the What that means is the breed of the derize the meat and to increase its flavor. dishes on the menu, without naming them. beast on the menu, and nothing is better Side dishes are chosen with the same There is one exception to this princithan the ‘Angus’ range of Scottish cattle. care as the meat. So look out for sauces ple, and that is their ‘Tomahawke Steak’. and dips such as:Bourbon and PepperSo proudly plod forward the Aberdeen Angus breed which comes in two flavors, This is a wonderful rib-eye cut, which is corn, Béarnaise, Horseradish, and Port presented to you with great humor. and Stilton. Anticipate hot buttery mini namely Red Angus and Black Angus. The I will say no more, other than if you order Americans adopted the Black Angus as bread rolls cooked freshly in-house and it you will smile when it arrives at your their primary breeding stock because of served warm at your table. They also have table. its propensity to ‘marble’ its meat. That all-year-around fresh green asparagus, All of their steaks are grilled after means there is a rich fat vein running which is as good as it gets. sealing both sides to maintain and contain through the meat which moisturizes the But surprise, surprise; we are in a the steak’s moisture and juices.So they ofcut as it cooks. steakhouse, where the meat is excellent fer you a ‘Porterhouse’ which is really a So let’s see what The Marriott has – but my overriding memory was the side achieved in its new steakhouse. It is a ‘T-Bone’. If you try this, bear in mind that dish of crab. Both as crab pieces and crab there are two cuts involved. On one side complete makeover. Everything, but cakes. They tasted of crab, and that is anof the bone there is a fillet and on the otheverything you remember about the old other first for this city. er side there is a sirloin. Each has its own Cupola restaurant is gone. Well, that is The House’s steakhouse concept has with the exception of the ‘Vatican Dome’ different flavor, so eat them separately. been imported intact from the group’s Then we sampled a ‘Rib Eye, off the which they kept. They have taken a hell flagship hotel, Grosvenor House in Lonbone’. They depend on the marbling to of a financial gamble by re-inventing the don, where it is a success. If it is good cook the cut, and although it was great, I entire restaurant by means of a huge inenough for the discerning international prefer steak on the bone, as the roasted vestment. And it shows! diners of London, it has to be more than bone gives the meat an added dimension. good enough for grubby Bucharest.

You enter at the Champions end on And now the American names began to the first floor, and walk through the bar which offers you over 100 fine wines. kick in. That said, the steaks were permab.media@dnt.ro Most are affordable! On your left you pass a warm, relaxing cigar room, which offers you…cigars. This is a gift from heaven to American cigar lovers as they can purchase and puff away on their Cohibas without the hassle they have to go through to do the same back home.

Glide along a beautiful, rich, new parquet floor and through new glass partition doors to the open kitchen. And now it’s all showbiz, but performed tastefully. It is pure Americana, but they have selected the best of the USA and ignored the vulgar, mass market, McMuck style of US dining.

This means you will get courteous, happy and well informed waiting staff.

But let’s eat. It is an American themed concept, which means they have AmerRaising the steaks: the team behind the new restaurant

Bardem, in an intense role

Directed by: Alejandro Gonzalez Innaritu Starring: Javier Bardem, Maricel Álvarez, Hanaa Bouchaib On at: Cinema City Cotroceni, Scala Bucharest, Patria Craiova

∫ CORINA DUMITRESCU

Photo: Laurentiu Obae

Biutiful is a film that requires the viewer to go armed with sufficient handkerchief supplies, as it tells the tragic story of Uxbal, a man whose life is in freefall.

However, one must think twice before feeling sorry for the character so well portrayed by a very handsome, yet intense, Javier Bardem.

Biutiful captures the last months in the life of Uxbal, who, after neglecting his health, discovers that he is in the latter stage of terminal illness and must make amends with his loved ones.

His morals are questionable, as he helps illegal Chinese and African immigrants find jobs – a quite honorable occupation one might say, except for the fact that Uxbal gets good money out of it, while the jobs typically subject the workers to the most inhuman, medieval conditions and are paid a pittance.

He works hand in hand with his corrupt policeman brother, Tito.

Unlike Uxbal, whose failings are balanced with decency, Tito is a 100 percent bad guy.

Upon learning that he has such little time left, Uxbal becomes keener to amass money so he can make sure that his two children will be looked after. He begins to make mistakes and his determination turns to despair, as his bipolar former wife is in no position to look after the couple’s children.

The protagonist slowly runs out of options, until an unexpected solution occurs.

All in all, Biutiful is the story of a broken man who, in spite of his mistakes, does not seem to deserve his dreadful fate.

He is a man who grew up without a father and lost his mother at an early age, who also bears the burden of an unwanted gift – that of being able to see and speak to the souls of the departed.

Furthermore, the picture reveals a darker, poorer side to the celebrated Spanish jewel of Barcelona, the outskirts of which seem to reflect Uxbal’s own degeneracy.

This fine film will move even the hardest of hearts.

corina.dumitrescu@business-review.ro

www.business-review.ro Business Review | April 11 - 17, 2011

CITY 19

ROMANIAN MUSIC

Romanian international dance sensation Inna holds home debut

Courtesy of Global Music Management

Local dance icon Inna Inna, the 24-year-old singer from Mangalia who has found international fame, is holding her first major, open-air concert in Romania, at Arenele Romane in Bucharest, on May 17.

She will perform with Sensor, in a lineup that will also include the likes of other well-known Romanian artists Play & Win, Akcent and Alex Velea. Behind the

singer’s success is an enduring collaboration with the Romanian composers from Alba Iulia, Play & Win, made up of Sebastian Barac, Radu Bolfea and Marcel Botezan, who have also written for other top local acts, such as Akcent, Activ, Andra and Sistem.

After being signed up by the independent Ultra Records label in the US in 2009, Inna became the first Romanian recording artist to reach the top of the Billboard chart, the Hot Dance Airplay section, with Hot, her debut single.

The performer shot to fame in 2009, when the record became one of the most frequently played songs on TV and radio stations. Hot quickly reached number 1 in the national Nielsen Airplay Chart, later attaining airplay in places such as Russia, Poland, Bulgaria, Serbia, Slovakia, Greece, Belgium and the Netherlands.

Inna’s other hits include Love, Déjà vu and Amazing. Read more about the star here.

Inna’s concert is included in the Vodafone Best Music series of events. Tickets for the concert are available in the Eventim chain, at a cost of RON 80. ∫ Corina Dumitrescu

CONCERT

U2 2011 concert rumors quashed

With or without you? The Irish musicians might perform locally next year Irish band U2 will not be performing in Romania this year, said the German producer and manager of Romanian origins, Marcel Avram, at a press conference announcing the Rock the City festival organized by D&D East Entertainment. Rumors had been circulating since the start of the year in the local press that the group would play the newly renovated national stadium, which is to host its first event in August.

Bon Jovi could have been another op-

tion for the venue’s first concert, had it not been for the late inauguration of the stadium and the commitment made for the first event held there to be a football game (Romania v Argentina), said Avram.

He added that he and D&D East Entertainment would bring the first artist to the stadium.

Avram brought U2 to Germany in 2010 and said he hoped to be able to have the Irish band play Romania next year. ∫ Corina Dumitrescu

www.business-review.ro Business Review | April 11 - 17, 2011

20 CITY WORLD MUSIC

FESTIVAL

Get ready to Rock the City! South African performers to headline NuSoundz

STOCKEXCHANGE

Another reason to rejoice for rock fans

Courtesy of One Event

The third Rock the City festival will bring Whitesnake, Judas Priest, Prodigy and Mike and The Mechanics, among other artists, to Romexpo in Bucharest, on July 1, 2 and 3. The Sonisphere festival will not take place this year, due to a lack of headliners for the local market, announced D&D East Entertainment officials.

The most recent names confirmed in the line-up are: Papa Roach, Hatebreed, Therapy?, Sabaton and Boom. At least one major Romanian band is expected to perform on each day, with official announcements to be made shortly.

After previous concerts in Romania in 1997 and 2008, David Coverdale and his Whitesnake colleagues will slither back to Bucharest for July 3, the festival’s final day.

The band released their 11th album, Forevermore, in Europe on March 25.

The disc is to be promoted with a world tour, which will take in Romania.

Judas Priest have also included Romania in their Epitaph World Tour, billed as the last of their career. And Prodigy are returning to Romania for the fourth time to rock Romexpo with the likes of Breathe, Voodoo People and Firestarter.

Rock the City is being organized by D&D East Entertainment. Tickets are available in the Eventim network, Germanos and Vodafone stores, Carturesti and Humanitas bookstores or online from the site www.eventim.ro. Discounted advance-purchase tickets are already on sale. Until April 15, a day pass for the Normal Circle area costs RON 100 and for the Golden Circle area, RON 155. A full pass is on sale at RON 200 for the Normal Circle and RON 250 for the Golden Circle. ∫ Corina Dumitrescu

Mathambo, one of South Africa’s best known singers

South African artists Spoek Mathambo & Mshini Wam will headline the second session of the NuSoundz series, which is taking place on April 15 and 16 in clubs in Bucharest and Cluj-Napoca.

The band have won fame in the US with their blend of afro-funky, zulu-dubstep, post-punk techno and african-electrorap.

Mathambo, an MC, DJ and graphic designer, has recently become a prominent figure on the international scene, and is considered one of his country’s top musical exports.

The 26-year-old, born Nthato Mokgata, has recently finished recording his first solo album, Mshini Wam, and finalized a line-up that includes three other artists for his live appearances.

The concert will take place in Control Club in Bucharest on April 15 and in Cluj, at Boiler Club, on April 16.

Tickets cost RON 30 on the concert day and can be purchased directly from the location.

The Spoek Mathambo & Mshini Wam concert is part of the NuSoundz series and is produced by One Event in partnership with Control Club in Bucharest and Boiler Club in Cluj. ∫ Corina Dumitrescu

www.business-review.ro Business Review | April 11 - 17, 2011

CITY 21

COMEBACK TOUR

Britpop pioneers Suede include Bucharest in comeback tour

Courtesy of One Event

Suede stay in fashion for Bucharest gig Hits such as Animal Nitrate, The Wild Ones, Trash, Saturday Night, She’s In Fashion and Lazy will reverberate around Arenele Romane on June 4, when UK band Suede come to Bucharest. Considered one of the most influential British groups of the 1990s, along with Blur, Oasis and Pulp, Suede disbanded in 2003 but reunited last year.

At the time the group parted ways, they had released five studio albums, three compilations, three DVDs and 21 singles throughout a 14-year career. After leaving Suede, lead singer Brett Anderson formed The Tears with bandmate Bernard Butler and then pursued a solo career. Anderson has played in Bucharest before, opening a 2007 Muse concert, when he aired Suede songs including Beautiful Ones and Everything Will Flow.

Suede’s 1993 self-titled first album was feted by the music press as “the most expected debut album since The Sex Pistols’ Never Mind the Bollocks.” The album received a gold record one week after being launched, eclipsing Depeche Mode.

This year, a remastered version of Suede’s discography will be released, which will include bonus tracks and some improvements.

The concert is being organized by One Event. Tickets are available in the Eventim network, Germanos and Vodafone stores, Carturesti and Humanitas bookstores or online from the site www.eventim.ro.

Prices are RON 100, 130 and 150 until April 17 and RON 130, 160 and 180 between April 18 and June 4. ∫ Corina Dumitrescu

CONCERT

Wish they were here? Pink Floyd might perform in Romania in 2012

The potential Pink Floyd concert has generated a lot of buzz among music lovers Legendary band Pink Floyd might hold a concert in Romania next year, said D&D East Entertainment officials. The comments were made at a press conference announcing the Rock the City festival, according to website realitatea.net. Negotiations with the band are currently ongoing. The English act formed in 1965 and rapidly became one of the most influential and successful rock bands in the world, through their progressive and psychedelic rock style.

The band was built around guitarist and vocalist David Gilmour and bassist, co-vocalist and lyricist, Roger Waters. In 1985, Waters left the group which dis-

banded a decade later, only to reunite in 2005, with a line-up that included Waters, at the Live 8 concert, organized by fellow musician Bob Geldof. Waters later stated that he would only perform with the band occasionally. It was with him, however, that the band won international acclaim, through albums such as The Dark Side of the Moon, Wish You Were Here, Animals and The Wall.

Pink Floyd have never previously performed in Romania. They are known for the technical virtuosity of their live performances, with top sound quality and visual effects. ∫ Corina Dumitrescu

www.business-review.ro Business Review | April 11 - 17, 2011

22 IN TOUCH

QUOTE of the week

ROMANIA IN THE INTERNATIONAL PRESS

In good shape to flee journalists

AP: Romanian town charges steep divorce fee

Otilia Haraga Senior Journalist is writing a piece about children’s security on the internet: what risks children run on social networks and the internet in general and how parents can protect their offspring from the toxic effects of the global village. otilia.haraga@business-review.ro

Corina Dumitrescu Journalist

Courtesy of Dreamstime

“I have done plenty of exercise in my lifetime. I am in good physical condition,” Prime Minister Emil Boc told journalists who were chasing after him for comment on April 4. The episode occurred when Boc was en route to a meeting of democrat-liberal senators, to discuss the law on teachers’ salary structure. The PM said that he could not make any statements before meeting the senators.

When asked whether he had discussed the government’s assumption of responsibility for the teachers’ salary bill with the deputies, Boc answered: “First we consult with each other and then we make decisions. I cannot say anything.”

WHAT WE ARE WORKING ON

A recent law allows warring couples to be divorced by the municipality for a fixed fee. Since the law came into force a few months ago, each municipality can set its own fee. In Sangeorgiu de Mures it is up to

RON 10,000 or EUR 2,380, the Associated Press reports, 2,000 times more than in Bucharest. Sangeorgiu de Mures officials said last week the hefty sum is meant to discourage couples from divorcing.

Tree talk Supernatural beliefs in rural areas of Transylvania are the subject of a documentary

by Justin Blair and Matthew Vincent. The pair spent seven months in Transylvania filming Across the Forest, which, according to the film makers, “details these stories which are dying out because of the encroaching technology and modern values

that come with it.”

Writing on the film’s blog, they added, “We felt it important to shine a light on this part of the world because of the reputation Transylvania has in the west thanks to fiction writers of the last hundred years.”

More on this at www.acrosstheforest.com

is preparing a piece on local Easter traditions, as well as the most popular activities and destinations. The article will give the lowdown on this celebration, including some lesser known facts about it. corina.dumitrescu@business-review.ro

Simona Bazavan Journalist is working on a piece on the price of raw materials.

From copper to cocoa beans, the prices of some raw materials have soared in the past year to record levels and the trend seems to be continuing in 2011. BR takes a look at what generates these price surges and what to expect in the coming months. simona.bazavan@business-review.ro

EVENTS, BUSINESS & POLITICAL AGENDA April 11 Adeplast organizes a press conference to announce its investment plans for this year in Romania. By invitation only.

April 12 10:30 Romaqua Group organizes a press conference at JW Marriott Bucharest Grand Hotel. By invitation only.

12:00 Asirom organizes a press conference to announce its financial results for 2010 and plans for this year.

The event will take place at the A.ro Club. By invitation only.

The Evensys Consult conference will take place at Crowne Plaza Bucharest Hotel. By registration only.

April 14 ∫EVENT Business Review organizes the Energy – 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.

11:00 Helvetansa organizes an event for the launch of the Vulcain brand in

Romania at Carol Parc Hotel. By invitation only.

The Autentic Trade conference will take place at Crowne Plaza Bucharest Hotel. By registration 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.

STAY CONNECTED TO US Join BR Group on LinkedIn Fan BR on Facebook Follow BR on Twitter Subscribe to BR Newsletters all on www.business-review.ro

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