State Ministry of Economy giants: One third of the investments in excess of €1.5 bln come from banks

The most important 27 companies in terms of forecast revenues for 2009, which are included in the portfolio of the Ministry of Economy, sent their revenue and expense budgets for approval to the institution. These budgets include total investments in excess of RON 6.197 billion (€1.549 bln), of which some RON 1.632 bln (€408 million), or 26 percent, would come from loans contracted on local and foreign banking markets.

The Oltchim chemical complex plans to finance its investments almost entirely through domestic loans worth RON 500 mln (€125 mln), for a total investment budget set at RON 601.492 mln (€150 mln).

Complexul Energetic (CE) Turceni, the country’s largest thermal energy plant, which is negotiating a €300 mln loan with the European Bank for Reconstruction and Development (EBRD), plans to contract foreign loans worth over RON 366.974 mln (€91 mln) in 2009. Turceni has an investment program worth RON 592.744 mln (€148 mln) planned for 2009.

CE Rovinari is also counting on local loans of RON 296.368 mln (€74 mln), while CE Craiova is hoping for foreign loans worth RON 164.790 mln (€41 mln).

Hidroelectrica wants a foreign loan of RON 160 mln (€40 mln), according to its revenue and expense budget. The investment plan of the country’s largest electricity producer amounts to RON 1.16 bln (€290 mln), of which RON 390 mln (€97.5 mln) are to be borrowed. Hidroelectrica is currently engaged in negotiations with Deutsche Bank, company officials told Business Standard.