Ionuţ Negoiţă, Rin Grand Hotel owner, halts investments

Businessman Ionuţ Negoiţă, 36, who owns Confort group together with his brother Robert Negoiţă (a PSD deputy), with tourism, real estate and media operations, maintains he has halted investments and waiting for the market to stabilise, while in early 2010 he spoke of a mall and a 1,000-room hotel at the seaside.
"We will not operate any further investments this year. I recklessly took out short-term loans and risked getting stuck," stated Ionuţ Negoiţă, who works with several banks in Romania, with banking debts standing at 27m euros, according to his estimates.
Negoiţă brothers control Rin Grand hotel of Bucharest, Europe's biggest (according to owners), with around 1,500 rooms along 15 storeys and 1,000 parking spots, a 60m-euro investment finalised in 2007.
The businesses the two entrepreneurs manage slipped further after the first half. "Rin Grand Hotel had 5.3m-euro turnover in the first six months of the year, down 18.3% from a year ago," specifies Negoiţă.
The businessman says that his companies now hold cash and until they are able to 70% bear a banking loan, he will no longer work with money from banks.
"The relationship with banks is one of subordination, with banks holding a dominant position", Negoiţă says.