Folie 1

1
(No Transcript)
2

• UP and COMING HOTSPOTS IN ROMANIA
• Dr. Jörg K. Menzer
• Rechtsanwalt
• Zürich, 13th of June, 2006

3
Romania - Introduction

• Map of Romania's eight economical development
  regions

• Macroeconomic data from 2005
• GDP growth 4,1
• FDI stock 20 bn. EUR
• Average inflation rate 8,6
• Unemployment rate 5,9
• Average brutto income 260,-- EUR
• Minimum brutto income 85,-- EUR
• Average exchange rate RON/EUR 3,6
• Average exchange rate RON/USD 2,9

4
Bucharest Romania's economic center

• existence of local bodies (ex. Agency for
  Regional Development Bucharest Ilfov) which
  elaborate, evaluate the strategies of foreign
  investment and monitor the implementation of
  investment projects financed through EU funds
  (PFARE, ISPA) in various domains environment,
  infrastructure, tourism, education gt good
  management, high absorption capacity and
  transparency regarding the use of EU funds
• good collaboration with lobbying structures of
  foreign investors in Romania
• well developed transport and public facilities
  infrastructure
• existence of well trained specialists in project
  management regarding foreign investments
• improved business climate
• gt biggest foreign investors Erste Bank
  (Austria), Vodafone (UK), Orange (France), Metro
  (Germany)

5
Investment in Romania alternative hotspots

• Western Region (Timisoara, Arad)
• 34 investment projects amounting over 200 mil.
  EUR (2001-2005)
• biggest foreign investors Germany (Continental),
  Japan (Yazaky)
• Central Region (Brasov, Sibiu)
• 50 investment projects amounting over 300 mil.
  EUR (2001-2006)
• biggest foreign investors Germany (INA
  Schäfler), Austria (Wienerberger)
• South Region (Ploiesti)
• 24 investment projects amounting over 250 mil.
  EUR (2001-2006)
• biggest foreign investors Austria (OMV), US
  (Johnson Control)
• South-Eastern Region (Galati, Constanta)
• 15 investment projects amounting over 250 mil.
  EUR (2000-2006)
• biggest foreign investors Mittal Steel (UK),
  Korea (Daewoo Shipbuilding)

6
Investing in Romania - advantages

• Market location advantage
• second largest market in CEE at the junction of 3
  prospective EU transportation corridors
• Resources
• skilled working force, rich natural resources and
  large industrial infrastructure in the cities
• Political advantage
• stable executive power and prospective of EU
  membership on Jan. 2007
• Economical and legislative advantages
• 16 tax on corporate profits
• tax incentives for foreign direct investments
  with a significant impact on the economy
• level playing field for foreign and domestic
  investors and free access to financing
• sustainable economic growth and functional market
  economy status
• similar legal provisions as in EU
• cheap labor costs

7
Types of business in Romania - overview

• Possible types of companies
• joint stock company (rum. S.A.)
• limited responsability company (rum. S.R.L.)
• Advantages in case of incorporating a Ltd. Co.
• min. capital requirement 200,-- RON (ca. 55
  EUR)
• Ltd. Co. with single shareholder is possible
  max. no. of shareholder is 50
• flexible structure
• few legal formalities
• shareholders liability is limited to the amount
  subsribed as participation in the companies share
  capital

8
Investing in Romania possible downfalls

• necessary reform of the judiciary gt
  time-consuming court proceedings, unpredictable
  court decisions, overloaded judges
• progress in privatization of the state-run
  companies and restructuring of enterprises still
  to be done
• poor administration's capacity to implement and
  enforce the regulations synchronized with EU -
  law
• corruption and bureaucracy in public
  administration still to be tackled
• poor stability and transparency in the fiscal
  system
• rigid labor law regulations

9
Business sectors in Romania - overview

• Energy
• privatization of power and gas distribution
  companies Electrica Banat (Enel - Italy),
  Electrica Moldova (E.ON - Germany), Distrigaz
  Nord (Ruhrgas)
• privatisation of the biggest oil company Petrom
  was acquired by OMV (Austria)
• Manufacturing
• major investments in automotive industry car
  manufacturer Dacia was acquired by Renault
  France
• Retail
• potential of Romanian retail market was eyed by
  big investors Tengelmann (Germany), Carrefour
  (France)
• Real Estate
• high profit margins by investments in real estate
  projects Bucharest Business Park (Immo -
  Austria), America House (GTC - Israel), Iride
  Business Park (Immofinanz - Austria).

10
Unsere Adressen
BerlinCharlottenstraße 57D-10117 BerlinTel.
49-(0)30-2094-2000Fax [phone]
BratislavaNÖRR STIEFENHOFER LUTZ s.r.o.AC
Diplomat Palisády 29/ASK-81106 Bratislava Tel.
421-(0)2-59101010Fax [phone]
BudapestRozgonyi Nyalka GondaNÖRR STIEFENHOFER
LUTZÜgyvédi Iroda Fo utca 14.-18. H-1011
Budapest Tel. [phone] Fax
36-(0)1-2240495
BukarestC. A. Zsolt Karl Radnóczy NÖRR
STIEFENHOFER LUTZ Str. General Constantin Budistea
nu nr, 28C, sector RO-010775 Bucuresti Tel.
40-(0)21-3125888 Fax [phone]
MoskauNÖRR STIEFENHOFER LUTZ oooZwetnoj
Boulevard 25, Geb. 3 Business Zentrum
Mosenka-2 127051 MoskauRussische Föderation
Tel. [phone] Fax [phone]
DüsseldorfVictoriaplatz 2 D-40477 Düsseldorf
Tel. [phone] Fax [phone]
0
Frankfurt am Main Friedrichstraße 2-6 D-60323
Frankfurt am Main Tel. [phone] Fax
49-(0)69-971477-100
Dresden Louis-Braille-Straße 5 D-01099
Dresden Tel. [phone] Fax
49-(0)351-81660-81
München Brienner Straße 28 D-80333 München Tel.
49-(0)89-28628-0 Fax [phone]
Prag NÖRR STIEFENHOFER LUTZ v.o.s.Na Prikope
15 CZ-11000 Praha 1 Tel. [phone] Fax
420-233112112
Warschau NÖRR STIEFENHOFER LUTZ Sp. z o.o. Al.
Armii Ludowej 26 PL-00-609 Warszawa Tel.
48-(0)22-5793060 Fax [phone]
New York Representative Office 375 Park Avenue,
Suite 2608 New York, NY 10022 Tel.
1-212-4331396 Fax [phone]
E-Mail info_at_noerr.com Internet www.noerr.com