Whether Romania wants to reach a 5% growth rate, join the Eurozone or keep the pensions system afloat, the government needs to take steps to increase the potential output, improve capitals, the demographic situation and the level of productiveness, according to Valentin Lazea, Chief-Economist of the National Bank of Romania (BNR).
The Ministry of Finance (MFP) borrowed yesterday, June 4, RON 162 million banks from the commercial banks through an issue of bonds with a 31-month residual maturity. The average weighted yield was 1.26% per year. An additional tender will be held today for another EUR 45 million at the same yield.
Romania's GDP was estimated at the end of the first quarter at RON 139.27 billion in current prices, up 4.3% year-on-year. The retail, automotive repairs, transport, hotels, restaurants and industry sectors were the main engines driving GDP growth, according to the National Institute for Statistics (INS). According to the seasonally-adjusted figures, the GDP stood at RON 174.85 billion, up 1.6% year-on-year.
Fitch Ratings has upgraded Banca Transilvania's long-term debt rating to BB and confirmed those of UniCredit Tiriac Bank (BBB), ProCredit Bank Romania (BBB-) and Garanti Bank (BB+). While Garanti Bank's rating is being monitored for a possible upgrade, the others were declared stable.
The interest rates of some RON-denominated loans now match those of EUR-denominated loans, which removes the need to accept an exchange rates risk. The commercial banks issued new loans worth more than RON 15 billion in the first four months of this year, more than three quarters of which were denominated in the national currency, according to data released by the National Bank of Romania (BNR).
The aggregated value of unpaid installments on retail and corporate loans amounted to RON 31 billion at the end of April, down RON 1 billion year-on-year, according to the National Bank of Romania (BNR). The total number of clients who are behind in their payments dropped in the past year from 215,926 to 206,143.
Pepco, a Polish apparel discounter, is expanding in Romania under the guidance of Valentin Dobrescu and Victor Ugron. Dobrescu is head of expansion and construction at Pepco and a former expansion and portfolio director at Takko and head of real estate at Real. Ugron has worked for the Best&Less, Pepkor and Pepco brands.
The biggest natural gas networks development project currently under development bears the codename Black Sea and it involves EUR 1.5 billion worth of pipelines that are supposed to bring natural gas from beneath the Black Sea to the Hungarian border.
The European Commission approved the allocation of EUR 83 million for extending Line 4 of the Bucharest subway system with the Parc Bazilescu-Straulesti sector. The 1.89-kilometer extension will benefit the residents of Bucurestii Noi and Chitila and is expected to be used by around 3.6 million passengers every year. The money will come from the Cohesion Fund.
Prime Minister Victor Ponta stated on Sunday that, instead of resigning, he would fight the prosecutor's order and affirm his innocence. The official announcement came after two days of talks with the party and its allies, including an emergency meeting of the ruling coalition.
Artifex, a Focsani-based textiles and clothing producer that numbers among its clients brands such as Hugo Boss, Massimo Dutti, Lacoste Premium and COS, estimates for this year a turnover of EUR 34 million, up 25% from 2014. The company will continue to recruit between 100 and 200 employees per year because demand is high.
More than 900 drugs were removed from the compensated list by the pharmaceutical companies, which preferred not to apply with the Ministry of Health. Mihaela Udrea, head of the Ministry of Health's Pharmaceutical Division, assured the public that alternatives exist for every one of these products.