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This is a new concept of European - Irish residential living in Romania. |
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Slight increase of pensions and wages, a possibilityPM Emil Boc stated yesterday in Lancram, Alba County, that a slight indexation of pensions and wages might occur in the second half of the year to come, but added the Government “will not give in to the temptation of indexations” which the economy cannot back, Mediafax reports. WB: Economic growth will pick up speed in 2012Romanian economy will post 1.5 pc growth this year, and 1.8-2.1 pc in 2012, according to the latest World Bank estimates, Money.ro reports. Even if Romania is expected to have one of the slightest economic growth from among the ten new EU member states, the World Bank report outlines that Romania and Slovenia will be the only countries of the aforementioned ten to witness an accelerated pace of economic growth next year. Macroeconomic results to help Romania overcome new financial crisisAlthough the storm of a new economic crisis is forecast in Europe, Romania will overcome the difficult period according to economists. A lower unemployment compared to other European states, a lower level of indebtedness, the adoption of austerity measures last year, as well as the start of important investment projects allow Romania to breathe somewhat more relieved in the third year of crisis. ______________________________________________________Erste estimates 2pc economic growth for Romania this yearAustrian Erste Group expects 2 per cent economic growth in Romania this year, followed by 3.9 per cent in 2012, with a rise in industrial production of 4.5 per cent this year and 3.8 per cent next year. On the other hand, a withdrawal of funds by Greek banks from Romania would have limited economic consequences, as competitors would be quite happy to fill the created void, all in a context of considerably slower credit growth, according to a group analysis, Mediafax notes. Fitch upgrades Romania to 'BBB-', Outlook Stable Fitch Ratings has upgraded Romania’s Long-term foreign currency Issuer Default Rating (IDR) to ‘BBB-’ from ‘BB+’ and Long-term local currency IDR to ‘BBB’ from ‘BBB-’, according to a press release. The Outlooks are Stable. At the same time, the agency has upgraded the Country Ceiling to ‘BBB+’ from ‘BBB’ and the Short-term foreign currency IDR to ‘F3’ from ‘B’. 2.14 million tourists accommodated in Romania in first 5 months The number of tourists that checked to Romania’s accommodation facilities during the first five months of the year rose by 9.9 pc against the similar interval of 2010, to 2.14 million, with one in four tourists coming from abroad, according to data released Monday by the National Statistics Institute (INS). ______________________________________________________
10pc risk premium makes Romania attractive for investorsRomania’s risk premium dropped by approximately 10 per cent to 267 base points since the start of the year, the lowest level in the last 9 months, Money.ro informs, quoting Reuters. Analysts point to an improvement in Romania’s economy as the cause behind this development. Romania’s risk premium continues to drop, almost in tandem with the RON’s appreciation trend. Strongest RON in last 11 monthsYesterday the National Bank of Romania (BNR) posted a reference exchange rate of RON 4.1685/EUR and of RON 2.9428/USD. The BNR exchange rate dropped by RON 0.0335 to RON 2.9090/USD. It was the lowest exchange rate since the one reported on January 25, 2010 (RON 2.9079/USD). In the first hour of the interbank trading session on Tuesday the national currency’s quotation had a downward trend, the exchange rate dropping to a low of RON 4.1480/EUR, a development that was in line with those seen at regional level. PM BoC: Old Scrapping and First Home bring economic springThe Old Car Scrapping and First Home Programmes can bring economic spring in Romania, PM Emil Boc said yesterday, after paying a visit to REMAT Sud S.A., promising a debt rescheduling scheme for companies with sound economic prospects, Mediafax reports. ______________________________________________________Saxo Bank: Romanian Economy could grow by 1.3pc in 2011Saxo Bank’s estimates point to an economic growth of 1.3 per cent this year. Likewise, according to the financial institution’s analysts, the inflation rate could fall to 5.2 per cent as a consequence of the growth in exports and drop in imports, Mediafax informs. “I hope this has reached rock bottom and problems will be solved. Exports have risen and households have consumed fewer imported products. If you continue to hike your exports, to diversify them and to spend less on imports it will be very good for Romania. The inflation rate is very high in Romania, however we expect it to drop slightly to about 5.2 per cent. The inflation rate was caused by imports, however if imports drop then we believe the inflation rate will drop too,” Christian Blaabjerg, Saxo Bank’s Chief Equity Strategist told yesterday a press conference. Dozens of foreign brands set their eyes on Romania, in 2011Dozens of foreign brands will enter the Romanian market in 2011, giving another signal that the crisis is nearing its end, ‘Capital’ newspaper reports. The local retail market will welcome at least four famous brands this year, with the most awaited being the Swedes of H&M, who will open nine stores in the country. The most fortunate beneficiary seems to be the owner of the Iulius Mall chain, which signed three contracts with the Swedish cloth retailer. Google recruits Romanians for its offices in Poland & IrelandThe world’s most admired recruiter, the search engine Google, hires Romanians not just for its Bucharest office, which it opened last year, but also for its offices in Dublin and Wroclaw, Realitatea.net reports. INS: Trade defecit down 3.5pc in first 11 months of 2010The trade deficit has dropped by 3.5 per cent to EUR 8.64 bln in the first 11 months of 2010 against the backdrop of a bigger growth in exports, the National Statistics Institute (INS) shows. Thus, in the aforementioned period exports totaled RON 143.01 bln (EUR 33.99 bln), while imports totaled RON 179.3 bln (EUR 42.63 bln). ______________________________________________________EBRD: Eastern Europe needs balanced growthThe countries in Central-Eastern Europe need a balanced growth model and better integration of financial markets, the president of the European Bank for Reconstruction and Development Bank (EBRD), Thomas Mirow, recently argued, while attending a meeting in Vienna, Agerpres reports. He also stressed the importance of monitoring cross-border financial activities. He added that the cause for concern should not be the currency in which a loan is granted, but the large numbers of people taking loans, which hinder alignment to the strict capital norms requested by Basel III. Economic growth - 1.5pc in 2011 and 4.5pc in 2013, Government says Romania will reach an economic growth rate of 1.5 pc in 2011, followed by 3.9 pc in 2012 and 4.5 pc in 2013, the income tax will be kept at 16 pc and incomes will stay around 3.3-3.4 pc of the GDP by year 2013, according to the fiscal and budget Strategy for 2011-2013, passed by the Government on Wednesday. “The macroeconomic framework for 2011 takes into consideration the fact that economic and financial evolutions will improve and recession will subside during the first half of the year, so the Gross Domestic Product will grow by an average 1.5 pc,” reads the document. “Economic growth during 2012 and 2013 will be driven by domestic demand and the gross fixed capital formation will be more dynamic than end consumption. According to the document, domestic demand will increase its contribution to the GDP by 1.8 pc next year, 4.3 pc in 2012 and 4.8 pc in 2013,” HotNews reports. Competition among banks likely to grow, CCR head says The following months will see an avalanche of refinancing loans to individuals, as the notaries lower, in turn, their fees, and banks will try to win over their competitors’ clients, the head of the Council for Competition (CCR), Bogdan Chiritoiu, stated, yesterday, in a press conference. Romania exports' annual growth, second largest in the EU in H1 Romania is second in the EU when it comes to the annual growth of exports in H1 (26 per cent to EUR 17.2 bln) and fourth when it comes to the annual growth of imports (20 per cent to EUR 21.9 bln), Eurostat informs. ______________________________________________________NEWS IN BRIEFFinance Ministry sells Treasury Certificates worth 1.27 bln RON Fitch: Stable perspective for Romania’s long-term debtCredit rating agency Fitch Ratings has confirmed Romania’s long-term hard and home currency ratings of “BB+” and “BBB-“ respectively, with stable perspective, as it considers the state will succeed in finding a way to return to an export-based economy. Exports boost Romanian economyIn the first half of the year Romania exported cars and transport equipment worth EUR 7.3 bln, according to ‘Gandul’ daily. Automobile Dacia and the car and transport equipment manufacturing companies continue to keep Romania’s exports high. Thus, in the first half of the year Romania exported cars and transport equipment worth EUR 7.3 bln or 43.2 per cent of the total value of exports (EUR 17.1 bln), the official statistics show. ____________________________________________
Romania’s IPP growth, 10th in the EUIn May, Romania’s industrial production prices for the internal market grew by 5.6 per cent compared to the same month last year, with that growth placing the country on 10th place in the EU. Romania’s IPP growth was higher than the EU’s average growth of 3.7 per cent, Eurostat informs being quoted by Mediafax.
EFG Eurobank: Romanian recession to end in H2 of 2011Gikas Hardouvelis, chief economist EFG Eurobank, thinks Romania will most likely get out of recession in the second half of 2011, Mediafax informs. Hardouvelis considers that the authorities will successfully manage the situation up to that moment since the crisis is close to an end.
IMF approves disbursement of EUR 900 M instalmentThe IMF Board on Friday approved the fourth revision of the institution’s stand-by agreement with Romania in view of disbursing the fifth instalment worth approximately EUR 900 M, with the money expected into the Romanian central bank’s accounts most likely on Monday, Mediafax informs.
Businessmen back the adoption of EUR in 2015The Romanian Businessmen Association (AOAR) backs the adoption of EUR on January 1, 2015, as per the timetable agreed, HotNews informs. The normal functioning and growth of the Romanian economy depends on that, Florin Pogonaru, president of AOAR, stated during a press conference. “First Home” buildings to be completed in maximum 18 monthsThe houses which are to be built, individually, by state-endorsed bank loans, in the “First Home” program, have to be completed on a 18 month term, with a maximum one year-extension, a term during which owners will pay only interests and commissions to the bank, but not the instalments. The decision was made by the Government, by a recently-adopted resolution, Mediafax informs. 2009, first year with profit for Raiffeisen housing divisionRaiffeisen housing division Banca pentru Locuinte (RBL) last year posted RON 1 M profit for the first time since it began operating in 2004, with over EUR 1 M allocated expenses for the merger with HVB Banca pentru Locuinte and in a context of financial crisis, RBL chairman Andrei Stamatian told a press conference yesterday. At the end of December the bank was managing more than 128,000 agreements totalling RON 2.26 bln, with the total contracted amount being higher by 21 per cent compared with the end of 2008.
IMF: Romania will have highest economic growth in EU, next yearThe IMF announced it revised downwards its estimation of Romania’s economic growth this year, from 1.3 pc to 0.8 pc, but for 2011 it anticipates a 5.1 pc increase of the GDP, the highest in the European Union, reads the World Economic Outlook report, quoted by Mediafax. Romanian authorities will discuss the new forecast with an IMF mission that will visit Bucharest at the end of April.
BMI: Romanian insurance market to grow over 200 pc by 2014
‘First House 2’ operational only for existing properties
Gas and electricity industry to boost economy in 2010
Construction begins at our Bod site!
IMF delegation meets President Traian BasescuThe IMF delegation yesterday met President Traian Basescu at Cotroceni Palace, Antena3.ro reports. Premier Emil Boc recently mentioned that Romania will have no trouble receiving the next tranches of the IMF loan, because it fulfilled the commitments it made in view of getting the money.On the other hand, PM Emil Boc held a briefing about the calendar of parliamentary and government actions in view of enforcing the accord signed with the IMF, PDL vice-president Adriean Videanu... DetailsCiobanu, CEO BCR BpL: Property market may defrost in 2010The evolution of the real estate market is still under a question mark, after a year of virtual collapse. According to Alexandru Ciobanu, CEO BCR BpL, a slight growth trend may start in the second semester.‘I do not expect to see prices anywhere near those in the previous years and it will probably take the market 4–5 years to truly come back, but we may see a possible unlocking of the market this year. There have been months with no transactions at all. Sellers expected... Details
‘First House’ – restructured as of February 15The ‘First House’ program will be extended under the current form until February 15, under Wednesday’s government resolution, after which a restructured formula will be implemented, with greater emphasis being put on construction of new dwellings, Mediafax reported Premier Emil Boc as announcing at Victoria Palace.‘As we speak, the program allows the purchase of any type of dwelling – from zero, to red to immediate possession. The data we have so far show... DetailsDeloitte: Romanian 3G developments - interesting this yearTechnological changes and the economic outlook are key drivers for this year’s trends in telecommunications, the market focus mixing cost-efficient strategies with upgraded solutions to cope with ever-increasing utilization rates and congested networks, according to the latest Telecommunications Predictions report issued by the Technology, Media and Telecommunications (TMT) Deloitte practice, a press release informs.Andrei Ionescu, ERS Senior Manager within Deloitte Romania... DetailsNEWS IN BRIEFOMD assumes Vodafone media accountOne of the most disputed media accounts in the market, the one of Vodafone, shifts as of February 1 to OMD agency, after it was managed for 12 years by Bogdan Enoiu with McCann Erickson. The media agency is part of the portfolio of Omnicom Media Group Romania (OMG Romania), an entity belonging 100 per cent to Omnicom Group, and is managed by Cristian Mucichescu. “I want to thank the media team of McCann Erickson, our trustful partner... DetailsEUR 400 M EIB loan to Ford signed, guaranteed by Romanian Gov’t
Finance Minister Sebastian Vladescu expressed his hope that the loan will allow the US carmaker to manufacture 250,000 cars a year in under 18 months.Romanian and European Investment Bank (EIB) officials signed a guarantee agreement for a EUR 400 million loan yesterday, to Ford Romania for the expansion and refurbishment of the company’s existing car assembly plant located in Craiova. Under the agreement, Romania will guarantee 80 per cent (or EUR 320 million) of the loan. The guarantee is granted for a period of five years and the risk commission was set at 2 pc a year.“We hope that by guaranteeing the loan we can... DetailsMoving slowly out of the recessionDr. Lucian Anghel, Chief Economist, Banca Comerciala RomanaThe recent data on 3Q 2009 economic growth show that the general economic picture is improving worldwide but the crisis is not over yet. Germany grew 0.7% q/q, France 0.3% q/q while Japan advanced 1.2% q/q, the fastest in the last two years. USA showed solid growth too (+0.9% q/q) – the good news is that the American economy has left the recession but at the same time we should not expect a higher growth rate in the following quarters. Some transitory factors like the car purchase...Investments and exports growth – the way out of the crisis
BNR chief economist estimatesThe internal consumption of goods and services should decrease by 5 percent of GDP in Romania, while in the future the economic growth of Romania should rely especially on investments and exports, Valentin Lazea, chief economist of the National Bank of Romania (BNR), declared on Tuesday at a conference on financial themes.He stated that the monetary, fiscal, salary, pension and structural policies must collaborate in order to limit the uncontrolled growth of consumption and to... Romania will be a foreign investment driver in the regionAccording to KTD InvestRomania is a lot more stable than other countries thanks to its diversified portfolio of activities, which is an advantage in attracting foreign investment and in capturing their confidence, KTD Invest President Iulian Panait stated on Tuesday, according to Mediafax.‘… I believe Romania will be a foreign investment driver in the region once the foreign investors’ confidence is back’, Panait stated at a conference of the Association of Finance and Banking...
Development funding from SwitzerlandParliament has approved funding of SFr257 million (USD 252 million) for Romania and Bulgaria as a contribution towards cohesion in the expanding European Union, according to swissinfo.org, Mediafax informs.The Senate on Monday followed the House of Representatives in granting financial support despite opposition by the rightwing Swiss People’s Party. Romania will gain the bulk of the money – SFr181 million – and the remainder will go to Bulgaria.The money will be...
US Ambassador: IT&C will pull Romania out of the crisisTraian Basescu told ‘IT&C and the future of the information society’ Global Forum about the risks of the computerized society.‘The IT&C sector will pull Romania out of the crisis because it has great potential, as a matter of fact it was the economy’s engine in the last two decades,’ Mark Gittenstein, the US Ambassador told ‘ IT&C and the future of the information society’ Global Forum on Monday. Details First loan of EUR 300 M granted by the World BankThe first loan of EUR 300 M granted by the World Bank to Romania was transferred to the WB’s corresponding banks on Tuesday, and from there will go to the Ministry of Finance, Agerpres informs. The money from the WB will be spent on supporting government reforms in the area of taxation, social welfare and in the financial sector. According to the preambles to the agreement on the first loan for social policies, the aims of the reform are ‘the consolidation of the public expenditures... Details The world in 2010After experiencing a severe economic crisis, almost all countries are in a search for new, sustained and balanced economic growth in the next years. Asia, USA and some Euro Zone countries seem to lead the worldwide economic recovery which will finally produce visible effects in emerging markets and in Romania with a time lag of several quarters. The global financial system is in a better position as compared to one year ago, the improvements in corporate funding are broadening and the global... Details Cill Dara Investments.com LaunchesWe are delighted to annouce the launch of the new Cill Dara Investments website.
BNR: RON reaches five-month-peak
National Bank governor, Mugur Isarescu doesn’t rule out the start of a new attack against the RON.The national currency recovered the whole fall registered in the first part of the interbank meeting of yesterday, the quotations falling below RON 4.28/Euro, but BNR reference rose 1.95 bani against Friday, to RON 4.2747/Euro, a new maximum of the last five and a half months, Mediafax informs. A superior rate was calculated by BNR on March 25, when the Euro was rated at RON 4.2838.
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Italian Interior Minister said Romanian-Italian relations had very much improved over recent months.