Romania

Political, Economical,
Social and Real Estate
Panorama

Author:
Iancu Guda, CFA, EMBA
Services Director & Chief Economist Coface
AAFBR President
IBR-ISF Trainer
Academic Lecturer
 Summary

1. Political and Legislative updates

2. Macroeconomic trend
3. Business Environment
4. Constructions
5. FMCG
6. Real Estate
7. E-commerce

Date
SITUATIA INSOLVENTELOR IN ROMANIA 2
1. Political and legislative updates (1)
The Social Democratic Party (PSD) won the presidential elections on 11 December 2016 by a
large margin and it has obtained 47.5% of total seats in Parliament;
PSD formed a parliamentary majority together with its ally ALDE (Alliance of Liberals and
Democrats) that has obtained 6.2% of seats in Parliament;
We expect this parliamentary majority to be stable due to the large number of MPs and due to
the links between the two parties in the previous years;
With some delay, the cabinet backed by the two parties and led by Mr. Sorin Grindeanu was
sworn in on 4 January
Structure of Parliament, by parties
Economical and social implications
Minorities;3,70
standard VAT rate was reduced to 19% from PMP, 5.60% %
20%;
ALDE, 6.20%
excises on fuels were lowered
UDMR, 6.50%
tax on special constructions (1%) was
removed;
Minimum wage increase from 1.250 RON to PSD, 47.50%

1.450 RON (starting 1st of February 2017) USR, 9.20%

=> IMPACT: support to private consumption

and to investments, but they should also put
additional upward pressures on the public PNL, 21.30%
budget deficit.
Note: average of votes for Chamber of
Deputies and Senate; / 3

Source: http://parlamentare2016.bec.ro,
 1. Political and legislative updates (2)
The governments surprising enforcement of an
Emergency Ordinance 13 decriminalizing some
corruption offenses resulted in massive street
protests against the PSD led Government
across the country. As a result, the Emergency
Ordinance had to be repealed and the Justice
Minister resigned;
Romanias Constitutional Court declared that the
law aimed to convert in RON at historical
exchange rate loans denominated in CHF is
unconstitutional;
Emergence Ordinance enacted on 6th of January bring important fiscal changes to companies:
Microenterprise s cap increased from 100K EUR up to 500 K EUR => 94% of the companies affected
Income tax on companies with 1 employee lowered from 2% to 1%;
Companies with turnover between 100K 500 K EUR obliged to pay taxes on income (instead of
gross profit
=> IMPACT: 955 mil RON lower fiscal burden on companies, completely offset by higher overheads due to
minimum wage increase (936 mil RON impact if 25% of the employees are paid at the minimum).
Source: Iancu Guda impact study issued on 9th of January: http://economie.hotnews.ro/stiri-finante_banci-
21520984-impactul-masurilor-fiscale-luate-guvernul-grindeanu-asupra-microintreprinderilor-studiu-
impact.htm
/ 4
 Summary

1. Political and Legislative updates

2. Macroeconomic trend
3. Business Environment
4. Constructions
5. FMCG
6. Real Estate
7. E-commerce

Date
SITUATIA INSOLVENTELOR IN ROMANIA 5
2. Macroeconomic Trend: GDP Growth (1)
Romania the largest GDP growth in the CEE region for both 2016 and 2017
Baseline scenario for GDP growth during 2017: 3,6% (according to market consensus),
with potential to reach 4% if new fiscal stimulus, recently announced in February 2017, will
be implemented: increase of pensions by another 9% (effective in July, following an
increase by 5.3% in January), lower taxation of pensions (pensions below RON 2000 are
not anymore taxed; health contributions are not anymore paid by pensioners), increase of
wages in the local public administration by 20% starting with 2018

Source: market consensus (FMI, European Commission, analysts

(Coface, Raiffeisen, Unicredit)
/
2. Macroeconomic Trend: GDP Growth (2)
GDP growth challenges:
Consumption driven: 75% weight in consumption model based (1995-2015 average);
Triggering imports (76% regression dependency) and external imbalances (current
account deficit up to 2,4% in GDP during 2016 vs 1,2% in 2015, with prospect to further
increase in 2017 (3,6%) and 2018 (4%) due to fastest growing imports (10% YoY in 2016)
compared to exports (7% YoY in 2016);
Modest fiscalization of GDP: public revenues in GDP only 30%, lowest level in the UE
due to largest underground economy (EU estimates 33%, highest in the EU), corruption
and bureaucracy;
Medium term fiscal stimulus due to uncertain sustainability.

Consumption % GDP 40% Consumption & GDP

90%
80% 30%
70%
20%
60%
50%
10%
40%
30%
0%
20%

1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016(H1)
10%
-10%
0%
-20%
Consumption YoY Import YoY
-30%
Source: NIS, author calculations

/ 7
2. Macroeconomic Trend: increasing fiscal deficit
Procyclical fiscal slippages : 45.00% 2.00%
40.00%
2,61% fiscal deficit during 2016, as 0.00%
35.00%
compared to 2,8% target; 30.00% -2.00%
25.00%
January 2017 started with a public -4.00%
20.00%
budget surplus of 0,4% (bellow 0,6% 15.00% -6.00%

during January 06 and 05). Public core 10.00%

-8.00%
5.00%
revenues contracted by 5,2%, while 0.00% -10.00%

Q2_2009

Q2_2013
Q4_2005
Q2_2006
Q4_2006
Q2_2007
Q4_2007
Q2_2008
Q4_2008

Q4_2009
Q2_2010
Q4_2010
Q2_2011
Q4_2011
Q2_2012
Q4_2012

Q4_2013
Q2_2014
Q4_2014
Q2_2015
Q4_2015
Q2_2016
Q4_2016
capital expenses (public investments
decreased by -30,3%);
Public Revenue % GDP Public Expense % GDP Public Deficit % GDP
Without corrective measures, public
deficit can climb to 3,7% Source: MF, Fiscal Council, author calculations

Fiscal Stimulus impact on public expenses

New fiscal measures during 2017 Effective Date Impact (mil RON)
Pension point increase to 1.000 RON 1st July 2.615
Public Salary increase 1st February 1.588
Minimum pension increase to 520 1st March 1.022
Other fiscal measures 504
Total impact expenses Total 2017 5.729
Fiscal Stimulus impact on public revenues
Cancellation of 102 taxes 1st February -1.513
Minimum salary increase to 1.450 RON 1st February 1.470
Tax relief for pensions 1.050 - 2.000 RON 1st February -1.300
Other fiscal measures -1.845
Total impact revenue Total 2017 -3.188
Total impact (mil RON) 8.917
Total impact (% GDP) -1,10% / 8
2. Macroeconomic Trend: monetary policy
Increasing inflationary pressures:
Negative inflation during June 2015 - December 2016 due to VAT cut rate;
After base effect elimination, positive inflation in early 2017 (0,1% in Jan and 0,2% in Feb);
Supply side adjustment: CPI + 1.1% yoy in February (author computations);
Market consensus: annual inflation rate at 1.7% yoy in December 2017 and to jump to 2.7%
yoy in Q1 2018
=> IMPACT: NBR expected to maintain the key interest rate unchanged in 2017 at 1,75%; a
first hike could be delivered in Q1 2018 (2%), the monetary policy stance should become
tighter sooner through the increase of money market interest rates
10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
mar. 11

mar. 12

iul.13

iul.14

iul.15

iul.16
ian.13
mar.13

ian.14
mar.14

ian.15
mar.15

ian.16
mar.16

ian.17
mai. 11

sep. 11
nov. 11

mai. 12

sep. 12
nov. 12

mai.13

mai.14

mai.15

mai.16
ian. 11

iul. 11

ian. 12

iul. 12

sep.13
nov.13

sep.14
nov.14

sep.15
nov.15

sep.16
nov.16
-2.00%

-4.00%

-6.00%
Annual Inflation Rate NBR Inflation Target Monetary Policy Rate

Source: NIS, NBR, author calculations

/ 9
2. Macroeconomic Trend: Credit Evolution
Increasing loans and savings for households:
Total (balance) loans increasing by 5% during 2016 compared to the previous year, from
107 Bn RON up to 113 Bn RON
Total (balance) deposits increasing by 11% during 2016 compared to the previous year,
from 146 Bn RON up to 163 Bn RON
Deleverage for companies:
Total (balance) loans decreasing by 2% during 2016 compared to the previous year, from
109 Bn RON up to 107 Bn RON
Total (balance) deposits increasing by 4% during 2016 compared to the previous year, from
106 Bn RON up to 110 Bn RON
=> IMPACT: total loans to deposits ratio constant decrease, from 1,2 (11) down to 0,8 (17)

Households Companies
14% 25%
12% Credit YoY %
Credit YoY %
Deposits YoY % 20%
10% Deposits YoY %
8% 15%
6%
10%
4%
2% 5%
0%
0%
4/1/2013
7/1/2013
1/1/2012
4/1/2012
7/1/2012

1/1/2013

1/1/2014
4/1/2014
7/1/2014

1/1/2015
4/1/2015
7/1/2015

1/1/2016
4/1/2016
7/1/2016
10/1/2012

10/1/2013

10/1/2014

10/1/2015

10/1/2016

1/1/2012
4/1/2012
7/1/2012

1/1/2013
4/1/2013
7/1/2013

1/1/2014
4/1/2014
7/1/2014

1/1/2015
4/1/2015
7/1/2015

1/1/2016
4/1/2016
7/1/2016
10/1/2012

10/1/2013

10/1/2014

10/1/2015

10/1/2016
-2%
-4% -5%
-6%
-10%

Source: NBR, author calculations / 10

2. Macroeconomic Trend: Labor Cost
12 increases of minimum salary within the Average vs Minimum Salary (RON)
3500 60%
previous 8 years;
3000
50%
Trend is necessary due to free labor market
2500
among EU and current underpayment level in 40%
2000
Romania (-45% as compared to EU(10)) 1500
30%

Nevertheless, the trend is unsustainable fast 1000

20%

(weight of minimum salary to average salary 500 10%

up from 27% (2008) to 43% (2016) and 55% 0 0%

(2018 forecast);
considering the lower productivity and
Avg Gross Salary Min Salary Min/Average
overall education level in Romania
9
8 Education Public Expense % GDP
7
6
5
4
3
2
1
0

Source: INS, Eurostat, author calculations / 11

2. Macroeconomic Trend: Labor Cost
Demographic trend: decreasing population with increasing average age, due to extreme
polarization;
population with age below 29 years down by -35%, whereas population with age above
70 years up by 53%;
Aprox. 2,5 mil 3 mil Romanians work abroad emigration impact not reflected by
population structure (below) and unemployment rate

Evolution %
INDICATOR Year 1990 Weight 1990 Year 2011 Weight 2011
2011 vs 1990
Age Range K pers. % K pers. %
09 3,503 15.1% 2,099 10.43% -40%
10-19 3,845 16.6% 2,199 10.93% -43%
20-29 3,368 14.5% 2,669 13.27% -21%
30-39 3,428 14.8% 3,062 15.22% -11%
40-49 2,634 11.4% 2,82 14.02% 7%
50-60 2,794 12.0% 3,05 15.16% 9%
60-70 2,201 9.5% 2,036 10.12% -7%
Above 70 1,432 6.2% 2,186 10.86% 53%
TOTAL 23,207 100.0% 20,121 100.0% -7%

Source: INS CENSUS, author calculations / 12

2. Macroeconomic Trend: IMF Conclusions March 2017
IMF Mission Chief for Romania, Mr. Reza Baqir,
concluded on 17th of March that:

Fiscal disequilibrium due to multiple tax reductions and

consecutive minimum salary growth above productivity
trend => higher fiscal deficit (3,9%), inflation (close to
NBR target rate of 2,5%) and future debt (46% from
GDB expected by 2020);

Future GDP growth (after 2020) jeopardized by unsustainable fiscal stimulus on the long run.
Structural reforms are critical: from consumption to investment policies, lower bureaucracy,
reduction of the corruption and underground economy, more stable juridical environment,
infrastructure, healthcare and education, improving european funds absorption, increasing
transparency on public expenditures;

High need to restructure and privatize loss making state companies;

Source: http://economie.hotnews.ro/stiri-finante-21667431-livevideo-text-fondul-monetar-
international-prezinta-concluziile-dupa-vizita-romania.htm

/ 13
 2. Macroeconomic Trend: Dashboard
Pre-crisis period (2008): Crisis period(09 12):
- Large GDP growth fueled by - FDI and foreign capital
consumption, triggering inflation high; rapid withdrawal, causing
- Large external imbalances, due to scarce liquidity, RON
increasing imports, current account deficit depreciation, blocking
being financed through volatile FDI credit and real estate
- Restrictive monetary policy offset by plummeting values
procyclical fiscal policy; - GDP plummeting without
- Real estate assets on the peak; consumption, causing
- Overall unemployment low without large fiscal deficit;
considering the emigration effect - NPL large increase;
Post-crisis period: 2016-2018:
- Gradual GDP and - Macroeconomic
FDI recovery; equilibrium
- Lower inflationary jeopardized by similar
pressures with lax pre-crisis procyclical
monetary policy and fiscal policy;
stable domestic - Gradual domestic
currency; currency depreciation
- Fiscal deficit and due to higher inflation,
current account fiscal deficit and
adjustment; external debt cost;

Indicator S 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Real GDP [1] 7,9% -6,8% -0,9% 2,3% -0,5% 3,5% 2,9% 3,9% 4,8% 3,7% 3,5%
Real GDP without agriculture [1] 6,3% -6,5% -0,5% 1,2% 2,3% 1,4% 2,8% 4,7% 5,0% 3,7% 3,5%
Monetary Interest Rate (end of year) [2] 10,25% 8,00% 6,25% 6,00% 5,25% 3,75% 2,75% 1,75% 1,75% 1,75% 2,25%
Inflation Rate (Annual CPI) [2] 7,90% 5,60% 6,10% 5,80% 3,30% 4,00% 1,10% -0,60% -1,50% 0,90% 2,90%
Unemployment Total [1] 5,6% 6,5% 7,0% 7,2% 6,8% 7,1% 6,7% 6,8% 6,0% 5,4% 5,1%
Unemployment workforce <25 years [1] 17,6% 20,0% 22,1% 23,9% 22,6% 23,7% 23,7% 23,0% 22,5% 22,0% 21,5%
Exchange Rate (EUR:RON) [1] 3,68 4,23 4,21 4,23 4,45 4,42 4,44 4,45 4,49 4,55 4,60
Fiscal Deficit [3] -5,6% -8,9% -6,6% -5,5% -3,0% -2,2% -1,9% -0,8% -2,6% -3,7% -4,0%
Public Debt % GDP [3] 13,2% 23,2% 29,9% 34,2% 37,3% 37,9% 38,2% 38,7% 39,0% 41,0% 44,0%
Current Account Deficit (% GDP) [2] -11,50% -4,50% -4,60% -4,60% -4,50% -0,80% -0,90% -1,20% -2,40% -3,60% -3,80%
FDI (mil EUR) [2] 9.496 3.490 2.220 1.814 2.139 2.937 3.050 3.500 4.100 4.550 5.010
Non - Performing Loans Rate
[2] 5,8% 7,9% 11,9% 14,3% 18,2% 21,9% 13,9% 12,1% 11,3% 10,8% 9,0%
(overall banking sector)
Real Estate Prices (EUR / sq m, 2 rooms
[4] 2.015 1.304 1.179 1.163 1.128 1.070 1.066 1.107 1.157 1.165 1.190
flat, national average)
Sources:
[1] National Institute of Statistics, http://www.insse.ro/cms/ro/content/comunicate-de-presa-arhiva
[2] National Bank of Romania, http://www.bnr.ro/Interactive-database-1107.aspx
[3] Ministry of Finance, http://www.mfinante.ro/
[4] http://www.imobiliare.ro/indicele-imobiliare-ro/bucuresti
/ 14
 Summary

1. Political and Legislative updates

2. Macroeconomic trend
3. Business Environment
4. Constructions
5. FMCG
6. Real Estate
7. E-commerce

Date
SITUATIA INSOLVENTELOR IN ROMANIA 15
3. Business Environment
Principal opportunities

Improvement of the payment behavior and financial standing the survivorship bias
Low competition among companies easy to differentiate
Increasing consumption incentive for investments
Low interest rates and good liquidity incentive for risk taking projects
Increasing financing schemes for younger entrepreneurs SRLD & European Funds

Principal challenges

Increasing workforce cost, amid lower education and availability

Polarization effect: regional and business level
Increasing contagiousness among companies through trade credit: the butterfly effect
Modest entrepreneurship spirit
Average productivity: modest innovation, research & development

/ 16
3. Business Environment companies dispersion

Source: Coface ICON Database, author calculations / 17

3. Business Environment companies dispersion

Source: Coface
ICON Database,
Ministry Finance,
Trade Register,
author calculations

/ 18
3. Business Environment companies dispersion
Number Number Number Number Number Number Number Number
Turnover Range (EUR) Companies Companies Companies Companies Companies Companies Companies Companies
2008 2009 2010 2011 2012 2013 2014 2015
0. No activity 156.547 135.335 168.046 178.204 176.574 177.979 130.822 139.094
1. 0-100 K EUR 371.906 357.549 331.841 301.314 324.495 330.928 329.706 332.097
2. 100K -500 K EUR 89.428 73.521 73.619 72.491 75.472 73.839 78.940 77.480
3. 500K-1.000 K EUR 19.254 15.325 15.618 15.926 16.538 16.263 17.512 16.776
4. 1-5 MIL EUR 20.292 15.618 15.930 16.793 17.151 17.222 18.385 18.310
5. 5-10 MIL EUR 3.109 2.377 2.522 2.635 2.834 2.632 2.762 3.048
6. 10-50 MIL EUR 2.588 2.007 2.047 2.199 2.324 2.311 2.465 2.567
7. 50-100 MIL EUR 298 210 233 235 242 231 258 288
8. Above 100 MIL EUR 264 216 216 235 247 235 257 260
Total 663.686 602.158 610.072 590.032 615.877 621.640 581.107 589.920
Turnover (Bn RON) Year 2008 Year 2009 Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 Year 2015
0. No activity - - - - - - - -
1. 0-100 K EUR 42 37 34 33 36 35 36 37
2. 100K -500 K EUR 69 69 69 72 75 73 80 77
3. 500K-1.000 K EUR 59 45 46 50 52 50 55 53
4. 1-5 MIL EUR 157 138 142 156 161 159 165 138
5. 5-10 MIL EUR 89 70 75 82 88 81 86 94
6. 10-50 MIL EUR 147 167 170 193 207 204 219 240
7. 50-100 MIL EUR 85 62 68 73 74 70 86 96
8. Above 100 MIL EUR 288 275 308 345 370 364 393 428
Total 936 864 912 1.004 1.062 1.037 1.119 1.163
Value weight of
companies with 65% 67% 68% 69% 70% 69% 70% 74%
turnover > 5 miL EUR
Number) weight of
companies with 0,9% 0,8% 0,8% 0,9% 0,9% 0,9% 1,0% 1,0%
turnover > 5 miL EUR

Source: Coface ICON Database, Ministry Finance, Trade Register,

author calculations
/ 19
3. Business Environment polarization
Turnover Range by
Number of Turnover TO TO % Net DSO Fixed Debt Ratio
2015 Financial Nr. %
companies (Bn RON) % 2015 - 2008 Result (days) Assets % to Assets
Exercise
0. No activity 139.094 24% - 0% 0%
1. 0-100 K EUR 332.097 56% 37 3% -11% -1% 231 38% 97%
2. 100K -500 K EUR 77.480 13% 77 7% 11% 5% 125 40% 75%
3. 500K-1.000 K EUR 16.776 3% 53 5% -11% 5% 108 48% 65%
4. 1-5 MIL EUR 18.310 3% 138 12% -12% 4% 97 53% 64%
5. 5-10 MIL EUR 3.048 1% 94 8% 6% 3% 95 52% 64%
6. 10-50 MIL EUR 2.567 0% 240 21% 63% 3% 91 55% 59%
7. 50-100 MIL EUR 288 0% 96 8% 13% 2% 98 53% 52%
8. Above100 MIL EUR 260 0% 428 37% 49% 3% 60 64% 40%
Total 589.920 1.163 100% 24% 3% 114 55% 62%

Turnover of top 1000 Top 1000 companies Pareto Structure Romania vs CEE
Year
companies (Bn RON) turnover % in total
1.2
2008 323 35%
2009 295 34% 1
2010 355 39%
2011 438 44% 0.8
2012 478 Romania
45%
2013 501 0.6 Hungary
48%
2014 532 48% Poland
0.4
2015 567 49% Czech

Source: Coface ICON Database, Ministry 0.2

Finance, Eurostat, author calculations
0
0 Top 1% Top 5% Top Top Top
10% 20% 50% / 20
3. Business Environment modest entrepreneurship
Romanian Business Environment: Creative Destruction

Category 2008 2009 2010 2011 2012 2013 2014 2015 2016
Suspension 12.019 29.456 24.398 21.221 21.086 24.078 15.788 17.698 15.600
Dissolution 3.762 18.766 7.508 4.001 22.500 23.208 18.336 27.967 29.500
Cancelations 17.676 43.615 58.726 56.245 71.746 80.786 76.483 94.374 115.000
Insolvencies 14.483 18.421 19.650 21.499 25.842 27.924 20.170 10.170 8.053
Interruptions 47.940 110.258 110.282 102.966 141.174 155.996 130.823 150.209 168.153
New Registrations 144.239 116.022 119.048 130.162 125.603 124.816 101.627 113.167 106.000
SRL Registrations 100.661 56.698 48.102 62.735 61.542 60.292 56.381 64.417 74.000
Ratio OUT : IN 0,5 1,9 2,3 1,6 2,3 2,6 2,3 2,3 2,3

180,000 3.0
160,000
2.5
140,000
120,000 2.0
100,000
1.5
80,000
60,000 1.0
40,000
0.5
20,000
0 -
2008 2009 2010 2011 2012 2013 2014 2015 2016

Interruptions SRL Registrations Ratio OUT : IN

Source: Coface ICON Database, Ministry Finance, author calculations

/ 21
3. Business Environment maturity and survivorship
Romania compared to CEE: Insolvencies in CEE
Immature business environment Insolvencies to
Companies :
Country 1.000 active
1.000 inhabitants
lower survivorship rate of the start-ups companies
Romania 43 23
More insolvent companies and less active firms
Serbia 41 17
Ungaria 24 57
Survivorship Rate of new start-ups in Romania
Lituania 17 34
Setup Year Active Non-Active Active % Non-Active % Total Croatia 10 62
2005 37.328 53.289 41% 59% 90.617 Cehia 9 137
2006 40.020 51.032 44% 56% 91.052 Slovenia 6 99
2007 48.624 51.396 49% 51% 100.020 Letonia 4 111
2008 51.069 49.592 51% 49% 100.661 Bulgaria 2 56
2009 33.422 23.276 59% 41% 56.698 Slovacia 1 100
2010 34.714 13.388 72% 28% 48.102 Estonia 1 128
Total 245.177 241.973 50% 50% 487.150 Polonia 0 48

60000 Distribution of active companies (2016)

160
50000
by setup year Insolvencies to
140 1.000 active
120 companies
40000 Companies : 1.000
100
80 inhabitants
30000
60
20000 40
20
10000 0

0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

Source: Trade Register, Ministry Finance, author calculations / 22

3. Business Environment improving payment behavior
Financial & Social impact of insolvencies

Indicator (mil RON) Year 2016 Year 2015 Year 2014 Year 2013
Total insolvencies 8.053 10.110 20.170 27.924
with financial statements 4.429 5.456 10.038 13.816
Total Debt 18.006 21.213 23.426 33.441
Total Tangible Assets 9.502 6.870 10.247 18.587
Debt above tangible assets 8.504 14.343 13.179 14.854
Financial loss / company 1,9 2,6 1,3 1,1
Number of employees 69.886 81.577 82.273 92.983
Avg Employees / company 16 15 8 7

Total number of new insolvencies Insolvencies among large companies

(turnover above 1 Mil EUR)
30000

800 757
25000
700 617
20000 569 577
600
482 485
500
15000
400 333
10000 300

5000
200
100
0 0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2010 2011 2012 2013 2014 2015 2016
Number of Insolvencies Insolvency Trend (10 years average)

Source: Trade Register, Ministry Finance, author calculations / 23

 Summary

1. Political and Legislative updates

2. Macroeconomic trend
3. Business Environment
4. Constructions
5. FMCG
6. Real Estate
7. E-commerce

Date
SITUATIA INSOLVENTELOR IN ROMANIA 24
4. Constructions sector (1) 0.0

2014M01
2014M03
2014M05
2014M07
2014M09
2014M11
2015M01
2015M03
2015M05
2015M07
2015M09
2015M11
2016M01
2016M03
2016M05
2016M07
2016M09
2016M11
2017M01
Construction confidence sluggish -5.0

recovery in both Romania and EU -10.0

38.653 authorizations for residential -15.0

buildings issued during 2016, -1,2% -20.0
down as compared to 2015 -25.0
European Union (28 countries)

Construction work volume down by - Romania

-30.0
4,8% in 2016 vs 2015
-35.0

Authorizations for residential buildings Volume of constructions

70,000
40%

60,000
30%
B-IF
50,000
Centru
20%
40,000 N-V
V
10%
30,000 S-V
S
0%
20,000 S-E
N-E
10,000 -10%

-
-20%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: NIS, author calculations /

 4. Constructions sector (2)
New constructions Principal Repairs Maintenance
40%
40% 40%
30%
30% 30%

20% 20% 20%

10% 10% 10%

0% 0%
0%
-10% -10%
-10%
-20% -20%

-30% -30% -20%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Residential Non-Residential Engineering

40%
40% 40%
30%
30%
30%
20%
20% 20%
10%
10% 10%
0%
0%
-10% 0%

-20% -10%
-10%
-30% -20%

-40% -20% -30%

20062007200820092010201120122013201420152016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sursa: INSSE /
4. Constructions sector (3)
13,5% of total banking loans are granted to companies from the construction
sector, as compared to the peak recorded in 2009 (17,7%);

5,8% construction weight in GDP formation, 2,4 times less compared to the
banking loans weight;

29,5% NPL (non-performing loans) rate reported by the banking sector for the
debtor companies belonging to the construction sector;
Construction sector weight in GDP and Non-Performing Loans (dec. 2016)
banking sector loans
20.0% 0.35
18.0%
0.3
16.0%
14.0% 0.25
12.0%
0.2
10.0%
8.0% 0.15
6.0%
0.1
4.0%
2.0% 0.05
0.0%
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Agriculture Industry Retail Services & Constructions
Utilities and Real
Weight in total banking loans Weight in GDP Estate

Source: NBR, NIS, author calculations /

4. Constructions sector (4)
11% of the companies are active in the construction sector, according to the
principal NACE code, two times less as compared to the GDP formation

80% of the construction companies report revenues below 100 K EUR

extended monopolistic market with multiple small players

Zero 1. 0 - 100 K 2. 100 - 500 K 3. 500 - 1000 K 4. 1 - 5 MIL 5. 5 - 10 MIL 6. Above 10 MIL Grand
Sector Activity EUR EUR EUR EUR EUR EUR Total
Construction of residential and non-residential 11.076 13.390 3.952 867 911 144 105 30.445
Plumbing, Heating and Air Conditioning 1.664 3.871 1.018 205 196 25 17 6.996
Electrical works 1.303 2.867 896 185 202 28 11 5.492
Development (promotion) estate 2.550 1.079 355 117 183 31 9 4.324
Other specialized construction n.c.a. 1.014 1.513 426 75 71 13 4 3.116
Joinery and carpentry 704 1.290 308 45 22 0 2.369
Construction of roads and motorways 514 641 355 124 200 71 61 1.966
Floor and wall covering 650 803 170 20 18 1 0 1.662
Works of painting and glazing 615 704 113 21 6 1 0 1.460
Site preparation works 339 666 165 25 26 0 1.221
Other sectors of construction 2.270 2.805 836 202 205 41 35 6.394
TOTAL 22.699 29.629 8.594 1.886 2.040 355 242 65.445
TOTAL % 35% 45% 13% 3% 3% 1% 0,4% 100%

Indicator Anul 2008 Anul 2009 Anul 2010 Anul 2011 Anul 2012 Anul 2013 Anul 2014 Anul 2015
Fixed Assets % 65% 64% 58% 55% 55% 54% 53% 52%
DSO (days) 115 135 183 194 208 215 210 185
Debt Ratio to total Assets 73% 68% 78% 79% 82% 86% 86% 86%
EAT (Earnings After Tax) % 8% 2% -4% -4% -4% -3% -1% 2%

Source: MF, Trade Register, author calculations /

 Summary

1. Political and Legislative updates

2. Macroeconomic trend
3. Business Environment
4. Constructions
5. FMCG
6. Real Estate
7. E-commerce

Date
SITUATIA INSOLVENTELOR IN ROMANIA 29
5. FMCG - Market Evolution (1)
0.0

2015M05

2017M01
2014M01
2014M03
2014M05
2014M07
2014M09
2014M11
2015M01
2015M03

2015M07
2015M09
2015M11
2016M01
2016M03
2016M05
2016M07
2016M09
2016M11
Constant growth of consumer -5.0

confidence in Romania, but still -10.0

under the average of the EU -15.0

-17% number of companies -20.0

reporting +26% revenues in -25.0

European Union (28 countries)
2015 compared to 2008; -30.0
Romania
Market consolidation and -35.0

convergence to modern trade. -40.0

180 Turnover from retail by product

160

140

120

100

80

60
2014_Mai

2015_Mai

2016_Mai
2014_Mar

2015_Mar

2016_Mar
2016_Jan
2014_Iul

2015_Iul

2016_Iul
2014_Ian
2014_Feb

2014_Iun

2015_Ian
2014_Apr

2015_Feb

2015_Iun

2016_Feb

2016_Iun

2017_Ian
2014_Aug
2014_Sep

2014_Nov
2014_Dec

2015_Apr

2015_Nov
2015_Dec

2016_Apr

2016_Nov
2016_Dec
2014_Oct

2015_Aug
2015_Sep
2015_Oct

2016_Aug
2016_Sep
2016_Oct
Food, beverages and tobacco Non-Food Products Automotive fuel

Source: MF, Trade Register, author calculations /

5. FMCG - Market Evolution (2)
NACE NACE Text
-17% number of companies 4631 Wholesale of fruit and vegetables
reporting +26% revenues in 4632 Wholesale of meat and meat products
4633 Wholesale of dairy products, eggs and edible oils and fats
2015 compared to 2008; 4634 Wholesale of beverages
4635 Wholesale of tobacco products
4636 Wholesale of sugar and chocolate and sugar confectionery
Market consolidation and 4637 Wholesale of coffee, tea, cocoa and spices
convergence to modern trade. 4638 Wholesale of other food, including fish, crustaceans and mollusks
4639 Non-specialized wholesale of food, beverages and tobacco

Category
Year 2015 Year 2014 Year 2013 Year 2012 Year 2011 Year 2010 Year 2009 Year 2008
Turnover (EUR)
0. Non-operational 1.968 1.987 2.639 2.543 2.676 2.258 1.867 2.443
1. EUR 0 - 100,000 2.723 2.914 2.964 2.987 2.691 2.904 3.173 3.106
2. EUR 100,000-500,000 1.192 1.307 1.243 1.335 1.435 1.495 1.442 1.581
3. EUR 500,000 - 1,000,000 484 518 523 588 550 562 534 581
4. EUR 1-5 MIL 818 850 810 834 879 862 880 42.826
5. EUR 5-10 MIL 193 163 175 210 200 201 191 217
6. EUR 10-50 MIL 169 155 180 188 181 165 182 215
7. EUR 50-100 MIL 17 15 14 12 12 9 11 13
8. MORE THAN EUR 100 MIL 11 9 6 6 7 8 11 10
TOTAL Number 7.575 7.918 8.554 8.703 8.631 8.464 8.291 9.206
Number evolution -4% -7% -2% 1% 2% 2% -10%
Total Turnover (mil RON) 61.168 58.118 51.621 54.666 58.234 54.516 55.881 48.364
Turnover Evolution 5% 13% -6% -6% 7% -2% 16%

Source: MF, Trade Register, author calculations /

5. FMCG - Consolidated P&L
Except wholesale of sugar & chocolate, revenues related to retail of all food
products have increased during 2015;
Marginal growth of profits for all sectors, but not enough to finance significant
capex and financial needs;
NACE Turnover Evolution - Wholesale of ... Year 2015 Year 2014 Year 2013 Year 2012
4631 fruit and vegetables 22% -3% -8% -14%
4632 meat and meat products 5% -1% -13% 7%
4633 dairy products, eggs, oils 4% -1% -8% 8%
4634 beverages 10% 11% -4% 8%
4635 tobacco products 8% 0% 2% 7%
4636 sugar, chocolate and sugar confectionery -20% 33% -27% -6%
4637 Wholesale of coffee, tea, cocoa and spices 14% 4% 5% 10%
4638 of other food, including fish, crustaceans and mollusks 12% 12% 4% -9%
4639 Non-specialized wholesale of food, beverages and tobacco 3% 31% -6% -21%
FMCG consolidated level 5% 13% -6% -6%

NACE Net Result Evolution - Wholesale of ... Year 2015 Year 2014 Year 2013 Year 2012
4631 fruit and vegetables 1.74% -0.51% -1.90% -0.01%
4632 meat and meat products 1.52% -0.47% -0.04% 0.03%
4633 dairy products, eggs, oils 2.52% 0.66% 0.84% -0.34%
4634 beverages 1.33% 0.44% -3% -0.76%
4635 tobacco products 3.65% 3.05% 3.10% 0.47%
4636 sugar, chocolate and sugar confectionery 1.45% 6.23% -1.57% 0.38%
4637 Wholesale of coffee, tea, cocoa and spices 1.56% 1.67% 1.54% 1.10%
4638 of other food, including fish, crustaceans and mollusks 2.77% 2.16% 2.71% 0.15%
4639 Non-specialized wholesale of food, beverages and tobacco 1.61% 0.74% 1.13% -1.52%
FMCG consolidated level 2.16% 1.36% 0.73% 0.71%

Source: MF, Trade Register, author calculations /

5. FMCG - Consolidated Balance Sheet (1)
Except wholesale of sugar & chocolate (negative equity), the majority of the
sectors register acceptable indebtedness level, amid an overall deleverage
trend;
Modest capex during 2015, due to insufficient profits and financial needs
(deleverage)
NACE Indebtedness Level - Wholesale of ... Year 2015 Year 2014 Year 2013 Year 2012
4631 fruit and vegetables 89% 93% 94% 91%
4632 meat and meat products 89% 88% 87% 97%
4633 dairy products, eggs, oils 72% 73% 78% 80%
4634 beverages 97% 95% 99% 94%
4635 tobacco products 77% 75% 78% 77%
4636 sugar, chocolate and sugar confectionery 103% 91% 107% 110%
4637 Wholesale of coffee, tea, cocoa and spices 70% 72% 75% 80%
4638 of other food, including fish, crustaceans and mollusks 76% 74% 73% 80%
4639 Non-specialized wholesale of food, beverages and tobacco 61% 68% 68% 85%
FMCG consolidated level 77% 81% 84% 82%

NACE CAPEX to Fixed Assets - Wholesale of ... Year 2015 Year 2014 Year 2013 Year 2012
4631 fruit and vegetables -1% 14% 21% 29%
4632 meat and meat products -4% 21% 24% 21%
4633 dairy products, eggs, oils 0% 7% 4% 86%
4634 beverages -2% 83% 10% 19%
4635 tobacco products 0% 2% 29% 11%
4636 sugar, chocolate and sugar confectionery -10% 0% 1% 11%
4637 Wholesale of coffee, tea, cocoa and spices 10% 16% 21% 30%
4638 of other food, including fish, crustaceans and mollusks -3% 6% 12% 14%
4639 Non-specialized wholesale of food, beverages and tobacco -2% 8% 4% 15%
FMCG consolidated level -1% 12% 11% 21%
Source: MF, Trade Register, author calculations /
 Summary

1. Political and Legislative updates

2. Macroeconomic trend
3. Business Environment
4. Constructions
5. FMCG
6. Real Estate
7. E-commerce

Date
SITUATIA INSOLVENTELOR IN ROMANIA 34
6. Real Estate First House program
First House program in 2017

2,5 Bn RON state guarantees + 175 mil RON unused from 2016;
57K EUR cap for old buildings (40% state guarantee) and 66K EUR for new buildings (50% state
guarantee);
Interest and upfront payment (5%) remain the same, excepting ING Bank increasing the upfront
payment up to 10%
Aprox 200.000 new loans granted between 2009-2016, forecast for +15% during 2017
IMPACT: old buildings prices expected to reduce by -5%

40,000 No of Guaranties (Transactions)

35,000 Volume of state guarantees (million Lei)

30,000

25,000

20,000

15,000

10,000

5,000

0
2009 2010 2011 2012 2013 2014 2015 2016

Source: FNGCIMM, author calculations /

 6. Real Estate modern retail Rent prices in Baneasa Shoping Mall
2007
120
Bucharest 2017 100 2008
80
60
2016 2009
Stock of modern retail up by 14% in 2016, as 40
20 max
compared to +17% during 2015;
0 min
Rent prices down by -10% in 2016 for the maximum 2015 2010

cap, whereas the minimum was stable;

Openings 2016: Veranda Mall (50 K sqm) and Park 2014 2011

Lake (165 K sqm) 2013 2012

Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Surface (1000 sqm) 110 209 729 1.063 1.273 1.273 1.273 1.323 1.323 1.553 1.768

Total Launch Total Launch

Shooping Mall Region Shooping Centers Region
Surface (sqm) Year Surface (sqm) Year
Baneasa Shopping City Baneasa 450.000 2008 Unirii Shopping Center Unirii 124.797 1991
Afi Palace Cotroceni Cotroceni 214.000 2009 Vitantis Shopping Center Vitan Barzesti 35.500 2006
Plaza Romania Drumul Taberei 110.000 2004 Militari Shopping Center Militari 51.000
Bucuresti Mall Vitan 99.000 1999 Galeriile Titan Titan 12.236 2013
Promenada Mall Calea Floreasca 50.000 2013 Iris Titan Shopping Center Titan 60.000 2008
Sun Plaza Piata Sudului 210.000 2010 Jolie Ville Galleria Pipera 12.000 2004
Liberty Center Rahova 70.000 2008 Fashion Outlet Military Militari 17.800 2008
Mega Mall Pantelimon 230.000 2015 Cocor Universitate 12.000 2008
Veranda Mall Bucur Obor 50.000 2016 Feeria 32.600 2008
Park Lake Titan 165.000 2016 Grant Shopping Center Crangasi 5.000 2006
Grand Arena Mall Berceni 120.000 2009 IDM Basarab 8.300 1994
Bucur Obor Obor 10.200 1976
Source: Real Estate Asset Valuation companies /
 6. Real Estate hypermarkets
Total Launch
Total retails surface in Bucharest Hypermarkets Region
Surface (sqm) Year
Orhideea - Spaiul
Shopping malls: 1,76 mil sqm Independentei 12.500 2003
Militari 16.000 2001
Shopping centers: 0,381 mil sqm Berceni 15.000 2009
Carrefour Chitila 15.000 2011
Hypermarkets: 0,389 mil sqm Baneasa 12.000 2008
Unirii 3.600 2007
TOTAL: 2,53 mil sqm
Colentina 16.352 2004
Vitan 15.800 2008
Pantelimon 16.000 2003
Large hypermarkets: Cora Hipermarket Berceni 13.000 2010
Lujerului 14.000 2005
No large hypermarkets opened during 2015 and 2016 Cotroceni 13.380 2009
Titan 16.000 2006
in Bucharest; Militari 16.000 2009
Pallady 14.000 2013
Q4 news in the modern retail market: Auchan
Crangasi 11.000 2012
Berceni 13.500 2013
M&A: Mid Europa Partners equity fund purchasing in Brasov 14.800 2014
the end of November PROFI retailer by 533 mil EUR. Vitan 10.400 2013
Mihai Bravu 9.000 2012
Transaction to be finalized during Q1 2017. Public Barbu Vacarescu 5.400 2006
Sos Pantelimon 5.900 2014
target stated to double the existing 500 shops to Kaufland Dr Taberei 4.800 2014
Sebastian 6.000 2009
reach 1.000 Valea Cascadelor 6.100 2013
Colentina 7.800 2005
Mega Image: currently 90% of the 484 stores located Baneasa 10.000 2002
Berceni 8.000 2003
in Bucharest (13 opened during 2016), will continue Selgros
Drumul Taberei 8.000 2009
Pantelimon 10.000 2002
the national expansion in Cluj starting with 2017 Baneasa 12.000 2005
Berceni 12.000 2002
Metro
Militari 13.000 2007
Pallady 13.000 2010

Source: Real Estate Asset Valuation companies /

 Office spaces vacancy % - CEE
6. Real Estate office spaces 25
20
Average vacancy rate in Bucharest down to 12,5% in 2016
15
Stable vacancy rate in other regional capitals, with similar 10
levels in Warsaw (12%), but higher in Sofia (18%) and 5
0
Budapest (16%); 2009 2010 2011 2012 2013 2014 2015 2016
Stable rent prices for most the capitals in the CEE region Bucharest (RO) Budapest (HU)
Warsaw (PL) Sofia (BG)
during 2016; Average

First two digits growth (13%) of office spaces stock values Office spaces stock evolution
Year Delivered Stock Delivered / Stock
during 2016 since 2010, expected to escalate up to 18% 1.000 1.000
1994
during 2017 1995 2.800 3.800 280%
1996 3.200 7.000 84%
1997 38.500 45.500 550%
1998 22.000 67.500 48%
1999 42.000 109.500 62%
2000 16.300 125.800 15%
Vacancy Rate 2009 2010 2011 2012 2013 2014 2015 2016 2001 63.000 188.800 50%
Bucharest (RO) 17,00 19,00 18,00 20,00 14,00 13,50 13,50 12,50 2002 42.000 230.800 22%
Budapest (HU) 16,00 17,00 15,50 17,00 16,00 16,00 16,50 16,00 2003 48.600 279.400 21%
2004 49.300 328.700 18%
Warsaw (PL) 8,00 7,00 6,00 9,00 11,00 12,00 12,50 12,00
2005 128.800 457.500 39%
Sofia (BG) 25,00 25,00 23,00 22,00 19,50 19,00 19,00 18,00 2006 179.000 636.500 39%
Average 22,00 17,00 15,63 17,00 15,13 15,13 15,38 14,63 2007 293.500 930.000 46%
2008 370.000 1.300.000 40%
Rent Index 2009 2010 2011 2012 2013 2014 2015 2016 2009 340.000 1.640.000 26%
Bucharest (RO) -13,79 -10,00 2,22 -4,35 2,27 2,22 0,87 1,29 2010 140.000 1.780.000 9%
Budapest (HU) -7,55 -2,04 -0,83 -1,26 -2,13 -0,87 -3,51 0,45 2011 106.000 1.886.000 6%
Warsaw (PL) -21,21 -3,85 4,00 3,85 -3,70 3,08 0,75 1,11 2012 92.600 1.978.600 5%
Sofia (BG) -11,32 -10,64 -6,67 -6,12 4,35 -1,04 1,58 -0,52 2013 119.000 2.097.600 6%
Average -13,913 -6,5657 -0,1081 -1,6234 -0,22 0,99 0,99 0,99 2014 140.000 2.237.600 7%
2015 70.500 2.308.100 3%
Source: Real Estate Asset Valuation companies 2016 302.000 2.610.100 / 13%
2017* 465.000 3.075.100 18%
6. Real Estate FMCG and modern trade trends in 2017
Roland Berger Estimates
19 Bn EUR total FMCG market
+10% in 2016 followed by +5% for 2017
Modern trade to reach 60% of total market weight
Increasing concentration in top players, top 8 companies reaching a consolidated market share of
50%, as compared to only 20% in 2008
Modern trade has doubled in the last 8 years, but still under the penetration reported by EU
countries

Penetration of modern trade (stores / 1 million inhabitants)

Source: http://modernbuyer.ro/roland-berger-5-cresterea-pietei-de-retail-in-2017/
/
6. Real Estate modern retail new projects in 2017 - 2018
[1] Shopping City Sibiu (NEPI)
Extension one additional level
+ 50 stores, food court and entertainment
+ 11.000 sqm of space to be renovated / extended
Final: 90.000 sqm & 2.500 parking places - the largest
commercial center in Romania &

[2] Ramnicu Valcea Mall (NEPI)

12ha purchased for 10 mil EUR (CPL filed, currently the
largest garbage dump in the city)
Contruction to start in 2017
Delivery Final end of 2017 / 1st half 2018

[3] Shopping City Satu Mare (NEPI)

18.000 sqm , investment of 6,7 mil EUR
Delivery extimated for the first half of 2018

Source: Real Estate Asset Valuation companies /

6. Real Estate modern retail new projects in 2017-2018
[4] Bistrita Retail Park (Vitalis Consulting)
Estimated construction surface: 15.000 sqm
22 different stores and 250 parking places
Total investment estimated: 15-16 mil EUR

[5] Prima Shops Oradea (Oasis R&D Consulting))

Start construction in October 2016
Total investment: 12 mil EUR
Total estimated space: 10.000 sqm
1st launch: 6 april 2017 (5.000 sqm) & final launch in
autumn 2017

[6] Festival Mall (Sibiu) Primavera Development

Location: Simerom factory (close to Podul Garii)
Estimated surface to rent: 42.000 sqm, 160 stores
Investment estimated to 70 mil EUR
Final Launch date estimated - second half 2018

Source: Real Estate Asset Valuation companies /

6. Real Estate modern retail new projects in 2017-2018
[7] AFI Palace Cotroceni Extension
+ 6.000 sqm of space to be rented, extending the mall to
a total surface of almost 90.000
Final delivery; beginning of 2018

TOTAL: additional spaces to be delivered during 2017

Most conservative: 110.000 sqm (Jones Lang LaSalle)
Most optimistic: 180.000 sqm (Colliers)

Source: Real Estate Asset Valuation companies /

 6. Real Estate Brasov
[1] Transilvania Residence Brasov
Location: Str. Sitei, nr. 44, Centrul istoric, Brasov
Apartments: 1,2,3,4 rooms
Prices: 37K 180 K EUR
Surface: 38 125 sqm
Delivery: December 2017

[2] Mauer Residence

Location: Zona Tractorul (13 Decembrie Ioana Popascu
Apartments: 14 apartment block, with 4, 6 and 8 levels,
generating 750 apartments
Start date: 2015
Delivery: 2017

[3] Arte by HVA

Location: Str. Lucian Blaga nr 13
Surfaces: 36 264 sqm
Delivery: 2017

Source: https://www.imobiliare.ro /
 6. Real Estate Brasov
[4] Cosmopolit Magnolia
Location: Str. Crisului, Nr 18A, zona Racadau
Apartments: 1,2,3,4 rooms
Delivery: December 2018

[5] Urban Residence

Location: Str. Ursu Ioan Nr 6, zona Tractorul,
Surfaces: 44 119 sqm
Apartments: 1, 2, 3 and 5 rooms
Delivery: two stages in 2017 (August & December) and
two stages in 2018 (March and September)

[6] Isaran Residence

Location: Str. 13 Decembrie nr 129, zona Tractorul
Surfaces: 70 124 sqm
Apartments: 2,3 and 4 rooms
Delivery: autumn 2017

Source: https://www.imobiliare.ro /
 6. Real Estate Brasov
[7] Safety Residence
Location: Str. George Calinescu , nr 2-4, zona Tractorul
Surfaces 30 84 sqm
Apartments: 1,2,3 rooms
Status (march 2017): building block 7
Delivery: Final July 2018

[8] Alpha Ville Trei

Location: Str. Vasile Alecsandri, nr 1, zona Racadau ,
Apartments: 2 blocks with 169 apartments
Delivery: two stages in december 2016 (1st block) and
december 2017 (second block)

[9] Signature Brasov

Location: Str. Ionescu Crum, zona Calea Bucuresti
Surfaces: 32 82 sqm
Apartments: 1,2 and 3 rooms
Delivery: spring 2017

Source: https://www.imobiliare.ro /
 6. Real Estate Brasov
[10] Safety Village
Location: #NA (10 minutes by car)
Surfaces 99 212 sqm
Villas: 65 houses
Status: spring 2017 first 5 villas

[11] Trepte Green II

Location: Str. Dihamului, zona Nord ,
Surfaces: 4 rooms, 102 sqm
Delivery: 10 villas (dec 2016) + 20 villas (sept 2017)

[12] Mihai Viteazul Residence

Location: Str. Mihai Viteazul nr 1-3, zona centrala
Surfaces: 50 - 96 sqm
Apartments: 1,2 and 3 rooms
Delivery: 2017 / 2018

Source: https://www.imobiliare.ro /
 6. Real Estate Brasov
[13] Imperial Residence
Location: Str. Stefan Baciu, zona 13 Decembrie
Surfaces 99 212 sqm
Apartments: 6 blocks, 1-3 rooms
Status: 2 blocks available
Delivery Final : 2018

[14] House Residence

Location: Str. Ioan V. Socec, zona Tractorul
Surfaces: 1,2,3 and 4 rooms
Surfaces: 38 81 sqm
Delivery: 2017 final

Source: https://www.imobiliare.ro /
 Summary

1. Political and Legislative updates

2. Macroeconomic trend
3. Business Environment
4. Constructions
5. FMCG
6. Real Estate
7. E-commerce

Date
SITUATIA INSOLVENTELOR IN ROMANIA 48
7. E-commerce (1)

Source: MF, Trade Register, author calculations /

 Thank You !

Date
SITUATIA INSOLVENTELOR IN ROMANIA 50