The electronics and home appliances retailer Altex has set up a consumer loans company called Credex together with Raiffeisen Bank, into which they intend to invest up to 20 million euros, the company announced.
Until now Altex was the only major retailer of electronics and home appliances whose shareholders were not involved in developing a consumer loans company or financial intermediation firm.
"Altex owns the majority stake, and Raiffeisen Bank will hold a minority share," said Dan Ostahie, the chairman and sole shareholder of Altex Impex SRL, the company that owns the majority stake in the new consumer loans firm.
Ostahie declined to give details as to the proportion in which the shares will be split between the two Credex shareholders. "By the end of this year the company''s share capital will reach 7 million euros, and we will change from a limited liability company to a joint stock company," he said.
The chairman of Raiffeisen Bank Romania, Steven van Groningen, confirmed that the company''s share capital would rise to as much as 20 million euros depending on the company''s needs.
"Raiffeisen will continue to be a minority shareholder, it is our job is to secure financing," Van Groningen said.
He explained that the new company would not handle the granting of consumer loans, but that it would release financing through its own balance sheet, which should reach a level of 100 million euros by next year.
"Our main target for this year is to establish the structure of the company and finalise work methodologies and hierarchy. In the first phase, starting this autumn, Credex will only operate in Media Galaxy stores, but as of 2006 we will expand to all the Altex stores, after which there will be collaboration with other retailers as well," specified Ostahie.
This new consumer loans company has arrived just when the central bank announced more restrictive conditions on the granting of consumer loans, which limit monthly repayment amounts to a maximum 30% of the net monthly income of the loan applicant.
"The level of debt is still very low in Romania, as compared to neighbouring countries. There is huge potential in the consumer finance area and we want to exploit this," added Van Groningen.
He says the restrictive measures imposed by the national bank would only have a temporary impact.
"Sooner or later we will attain the same level as in Europe here in Romania," he said.
Introduction of the new restrictions could lead to another downturn in the market for electronics and home appliances. ionut.bonoiu@zf.ro
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