Adjustment measurements for the changes related to the national currency denomination | SIVECO Romania

Adjustment measurements for the changes related to the national currency denomination

Friday, February 11, 2005

Bucharest, February 11, 2004 –  SIVECO Romania is ready for the most important economic event of this year: the national currency denomination.

The preparations involve several financial and human efforts, appreciated by the company’s clients, proving their trust in company’s abilities.

The national currency denomination will have an important impact over the financial applications and programs developed with proprietary solutions for middle businesses, as most of them depend on a technology developed at the beginning of the ‘90s. The impossibility to make the necessary adjustments in time for the denomination (with a reasonable investment effort) will lead to accelerated replacement with new information solutions, more complex and updated. The renewal of the Service Contracts and new implementation projects should bring the profit we estimate, which should allow the extension and improvement of our solutions”, added Theodor Stanescu.

“For SIVECO Romania, the denomination reflected in our company’s activity in costs with the adjustments of the information solutions to the new regulations.

SIVECO Romania delivers the adjustments to the integrated solution SIVECO Applications, ready to take over the extra effort determined by the double evidence in new and old currency, the new forms and fiscal reports.

SIVECO Romania already started the preparations for these changes in October, this year, and the integration of the new elements according with Law 348/14.07.2004 and Law 82/1991 republished, will be implemented at beneficiary companies that use SIVECO Romania software maintenance services, during the following year, as the new clients already benefit from these facilities incorporated in the acquired solution.  The tests and the certification of the information system for the transition to the new currency will be accomplished with SIVECO Romania’s partners.

This offer addresses financial institutions, insurance companies, utilities providers, central and local administration organizations, productive companies, transports, private companies etc.

For the financial-banking sector the offer is completed with the software package SIVECO Applications and conversion developing services for treasury and risk management applications.

The products and services offer answers known problems, and it also brings several advantages such as:

  • Data conversion to the new currency by the „one way once” method;
  • The new fiscal invoice format, sales ledgers, cash ledgers, bills and receipts;
  • Price evidence in new and old currency;
  • Value converter integrated in the payroll and human resources application;
  • Fiscal reports in new and old currency;
  • Cash reports in new and old currency.

The transition to the new currency will have mainly a positive impact over the Romanian economy and IT industry, considering that:

  • The population will save more;
  • The interest for real estate investments will increase, the offer for new residences will grow;
  • It will create a favorable change toward new, as the denomination process enjoys a positive apprehension, as a way to exit the transition period;
  • It will help re-launch economic sectors by drawing financial resources through credits, which could be a major growth factor for small and medium enterprises, since the corporatist sector is almost saturated with credits;
  • It will push home saved money into circulation, for change with new money;
  • It will generate new products and services specific for these changes.

      The negative aspects determined by this process will be rapidly overcome: slight increase of inflation, due to round up of the prices for common goods, food and utilities, a decrease of the Leu compared to the other currencies before de denomination starts, but all these problems should be solved once the process is understood and assimilated.

      “The IT industry will be more involved compared to the economy as a whole, since here concentrate the most dynamic changes caused by the denomination, and the requests for new products and services are amplified by the opportunity to justify new investments (in extending or renewing information systems) with the denomination”, said Theodor Stanescu, Project Manager, SIVECO Romania. “The general trend is to solve also other problems along the denomination adjustments, even to restructure and update several equipment, processes and procedures, which should lead to increase in IT products and services investments”.