Business Review

Leasing companies with operations on the local market are reporting a steady increase in repossessions, especially of cars and commercial vehicles. This phenomenon started toward the end of Q3 of last year, when the financial crisis began. Currently, leasing companies say they are forced to become car dealers in order to recover their debts, never mind turn a profit.

While 2008 was predicted to bring a 30 percent growth in Romania's parcel delivery market, now it is all about consolidation. As the B2B segment - which represents 50-100 percent of couriers' overall business - declines, firms have switched their focus to consumer and growing economic fields. Some of the largest players told BR their ongoing strategies for tough times.

WSP Group, which provides environment management and consultancy services, has identified the domains that the management hopes will keep the company competitive and profitable. Neil Foster, associate director with the group, told Business Review that his company is focusing on energy efficiency, renewable energy and infrastructure projects. He deems the latter problematic, due to the difficult public tender procedures in Romania.

Money is king on all markets nowadays, and the suffering local real estate market is feeling the pinch more than ever. Only a few have the financial means to continue investments in real estate, but those who do can cherry pick the market and take advantage of the limited competition and lower prices. Business Review looks at some of the active buyers and developers.

Local holding RTC is looking at three new investments this year, while pondering a possible downsizing of its Diverta chain, following a drop in sales. The group's owner Octavian Radu says he is working with several scenarios for this year, while focusing on increasing the group's efficiency.

Branding a business or product is an expensive process, but rebranding it requires at least as much money and time. In 2008, around 20 companies operating in diverse industries in Romania spent at least EUR 30 million on facelifts, repositioning on their specific market or rebranding strategies. This year, an unprecedented time in every business's life, has started with three announced rebrandings, despite the cost-cutting across the market at large.

Major oil companies are talking about an average crude price of USD 40 per barrel in the first half of this year, far from the peak registered in July 2008. Specialists say that the price of oil will not recover its strength, even after the OPEC meeting scheduled for March 15, following which a cut in oil production is expected to be announced.

Money often costs too much, the saying goes, and with credit so scarce it currently rings true. While the banks are holding onto their funds tightly, firms are looking for other sources to provide the cash they need to branch out or just run their businesses. Business Review asked Romanian-based representatives of the Big 4 consultancy companies and some local financial advisors what these sources are and how easy it is to tap them.

Plastic surgery and beauty treatments are more popular in Romania than in some neighboring countries, say experts in the industry, and will reach EUR 100 million in just a few years. A new anti-aging center has recently been opened in Romania, joining a club of around 25 plastic surgery clinics targeting those who wish to undergo a major physical overhaul.

While state-owned energy companies continue to sprawl and announce million-euro investment plans, financed from their own accounts, private companies have to deal with interest gearing. Financial analysts say Rompetrol Rafinare already has a debt level of 61 percent of its assets. Petrom officials told Business Review the company would postpone some investment projects and focus on those which can general a positive cash flow. They added that the company was considering resorting to external financing sources, unless the oil price reached a favorable level.