Consumer finance companies see losses deepen

Losses of big consumer finance companies deepened last year, with some players losing as much as three times more than previously, according to data published on the website of the Ministry of Finance, with the main reason being the rise in loan loss provision costs. Among large and medium-sized companies, the biggest loss was recorded by TBI Credit, which is part of the TBI Financial Services group (registered in the Netherlands) - 11 million euros, up by 210%. "The main reason was the rise in the volume of provisions after the NBR (National Bank of Romania) altered regulations. I think 2009 will be the same as last year, we will remain in the red because of the provisions," said Traian Baicu, general manager of TBI Credit. Second-highest losses were posted by Ralfi IFN, part of the GE Money group, the financial services division of American giant General Electric. In 2008 Ralfi lost 10.1 million euros, after in 2007 it had posted around 800,000 euros in profit. Cetelem, which, according to the latest data, is the largest consumer finance company on the Romanian market, reported an almost 7 million-euro loss, 10% higher than last year's figure.