Radu Enache: Basket of loss-offsetting reserves will become empty at a certain moment

05.05.2011 ZF English

Radu Enache, owner of Continental, one of the biggest Romanian hotel chains, which operates 1,890 rooms, said that reserves of several million euros he made from share capital and from other sources in a bid to offset losses will eventually deplete.

"We've changed the investment policy, even though we already have three construction permits in Bucharest, Timiş and Târgu-Mureş. I believe that if we started to build now, we'd put the rope around our own necks. The lack of predictability has influenced investments", said the businessman.

The group concluded last year with sales of EUR22.4 million and a EUR4.8 million loss, Enache said. "Fiscally, we're in the red, but in terms of balance sheet, we're doing well," said the businessman, explaining that debt restructuring led to losses.

The businessman added the group's debt level reaches 35% of asset value, which he puts at 520 million lei (EUR130 million). (EUR1=RON4.1065)