Microsoft: Foreign investments make Romania much more vulnerable to the crisis

“We, as a local team, feel that Romania’s economy is dependant on Western economies. There are many foreign investments on the local market, and if we look at what is happening abroad, it is natural that we are more vulnerable because we are influenced by decisions which are made elsewhere,” Tatomir added.

The company official revised downward the growth rate estimated for the 2009 fiscal year, which will end on 1 July 2009, to 20 percent from 35 percent, due to economic and political upheaval. “The 20 percent rise we are forecasting for the whole year is mainly based on the 6 percent increase registered in the first half of the fiscal year.”

The Original Equipment Manufacturer (OEM) business line, which refers to local producers that sell PCs with preinstalled Microsoft licenses, will be most affected, according to Tatomir.

Microsoft Romania’s General Manager added that the company is not planning to cut costs, but that it intends to support its partners during the crisis. “Microsoft has over 3,000 partners in Romania. Some of these can be on the verge of bankruptcy due to the crisis, so we are planning to come up with measures to ease their cash flow-related problems: payments in installments, fiscal advantages, or a delay in payments,” said Tatomir.