SIF Moldova below expectations

Four of the five financial investment companies (SIF) have exceeded the S&R budget profit estimates for 2002. The fifth, that is SIF Moldova, posted 210bn ROL in full-year net profit, which is 17.5% less than anticipated. The main reason why SIF Moldova failed to attain its budgetary target lies in the expenses related to the 117bn ROL provisions, which the company had to deposit. Provisions are justified by a possible loss that may be caused by a forced execution of $3.9 million by AVAB (Banking Assets Resolution Authority), for two credits secured by the former FPP (Private Ownership Fund) Moldova. Had this company not been forced to set up the provisions, it would have exceeded its S&R estimates by 28%. Top performer of the five in terms of S&R was SIF Banat-Crisana, which posted profits 13% higher than the estimates. ZF