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Focusing on costs, priority of 2009 business environment

Romanian businessmen' predictions of the 2009 domestic economy evolution show that focusing on costs will be a priority in view of overcoming the crisis, with the bankers to aim at unblocking the extension of national currency loans, reads the daily Business Standard.

According to the newspaper, next year's great fight for survival will be carried out on cost cuts in order to compensate for the decreased market growth.

In 2009 the companies' and banks' activity will revolve around costs control, as all executives have already made plans to use their liquidities more carefully and to curb the advance loss predicted for almost all economic sectors.

'Everyone is considering staff and cost cuts in the wake of the financial crisis. Some 500,000 to 1 million people are to lose their jobs', said Ioan Micula, co-president with the European Drinks Group, one of the largest players on the domestic beer and soft drinks market.

'Costs have to be cut and if salaries rise, than the number of employees should fall', believes Dan Ostahie, Altex owner, the biggest store chain of household appliances, electronics and IT products on the market.

The sectors to experience the highest growth in 2009 will be the mutual funds (up 24 percent compared with 2008), insurance(12-15 percent), courier services (10-30 percent). The retail, consultancy, PR and distribution sectors are predicted to rise by more than 10 percent.

On the other hand, the car industry, household appliances, stock brokerage and agriculture might report slumps between 40 and 50 percent next year.

Such plunges will be mainly due to Romanians' tendency to switch to the products they need at the most and the less expensive goods.

Especially hit by the economic crisis will be the small enterprises, which will go bankrupt, as they will no longer have access to financing, market experts say. 'We project an increase in legal services demand in terms of insolvency and bankruptcy procedures', Gabriel Zbarcea, managing partner with Tuca Zbarcea&Associates said.Banks have already changed the development policies, relying on short-term savings for 2009 and the resumption of loan extension in the second half-year.

'The challenge of 2009 will be the unblocking of loan extension', Radu Gratian Ghetea, president of the Romanian Banks' Association said.

Bankers believe 2009 will be the year of the national leu currency, predicting that both the drawn deposits and the loans will be contracted in lei and less in the traditional foreign currencies, euro and dollar.

 

Sursa: http://www.rompress.ro

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