Romania’s central bank (BNR) decided, today,  to cut its monetary policy interest rate by 50 basis points to 8% on the year, in line with market expectations. The bank kept the minimum reserve requirements unchanged. This was the fifth rate cut this year, from 10.25% in January, in an effort to support the ailing economy.   BNR decided to mantain the minimum reserve requirements ratios unchanged at 30% for foreign... [...]

According to a Romanian scholar and economical analyst, the idea of some specialists, that the economical crisis in Romania will end by next January, is farfetched. “We have a numbed economy, and until the wheel starts spinning again, we will have to bear with this phenomenon.” Ion Rosca, Rector at the Economical Science Academy in Romania, says that the Romania is also experiencing a political crisis, generated mainly by the lack... [...]

After last year’s stock market fall generated 36 million Euros in loss, less than a quarter of the 80 brokerage firms operating on the Bucharest Stock Exchange managed to finish last year recording a profit. According to data published by the Romanian Public Finance Ministry, the total loss of the whole sector rises up to 131.2 million Lei (35.6 million Euros). The Romanian Public Finance Ministryas report shows that only 19 of... [...]

The National Prognosis Committee estimates that Romania’s inflation rate will be around 4.3% at the end of 2009, below the central bank's 4.5% upper limit target. Next year, the indicator is seen falling to 3.5%.   The committee estimates the average annual inflation at 5.5% this year.   According to the National Statistics Institute, romanian consumer price index has decreased by 0.19% in August compared to July, while the... [...]

In the first half of this year, the Romanian banking system, saw a fast cost rise. Therefore, at the end of June 2009, the income/costs report was larger in Romania than in Hungary or Poland. This is after, at the end of last year, the performance indicator was in line with the regional level. As a result, the Romanian banking system was characterized with a low level of efficiency in the first semester of this year. Data published by the... [...]

In 2009, the Romanian currency could have the lowest volatility rate yet. BCR bank analysts in Romania are expecting a steady exchange rate, at least until November, just before the presidential elections. The bank’s research department is expecting a 4.2 Lei/Euro course for 2009, 4.1 Lei/Euro for 2010 and 4 Lei/Euro for 2011. “The Romanian currency could show one of the lowest volatility rate compared to the last three years.... [...]

Inflation rose last month by 0.2% compared to the month of May, due to price increase in non-food products, while the annual rate decreased from 5.59% to 5.86%. Also, the National Bank of Romania (BNR) set a 3.55% inflation target for 2009 with a variation interval of one percent, and it estimates that the indicator will stop at 4.4% in December. The 0.18% foodstuff price drop in June was attributed to the price reduction in some base... [...]

The EU’s Competition Directorship refused to validate as legal the recapitalization initiative of one of the two Romanian banks through which the state plans to save the economy. Instead, Ireland gets, as an “incentive” to review the referendum of the Lisbon Treaty approval, the go-ahead for state aids to a similar bank, eight times larger than the funds requested by the Romanian government for CEC Bank. With a state... [...]

The first loan contract for the “First House” programme was signed on the 8th of July, and BRD Romania is the first banking institution which signed the first warranty convention with the Romanian state. The other credit institutions wait their turn, but not before the Warranty Fund clarifies a series of obscure points in the treaty. The Romanian government received offers from 20 banks for credits, in total value of 1.4 billion... [...]

According to the Banking Risks Principal Office, this year’s unpaid debts formed 2.5% of the total of loans. Even more, 200.000 people were in default for loans of over 20.000 RON, meaning almost 20% of the clients in this loan margin. Comparative to the values recorded last year, the number of bad loaners doubled, from 1.15% to 2.5% in the period of May 2008 – May 2009. BNR (Romanian National Bank) data shows that at the end of... [...]

Slowly but surely, Romania fell from rank regarding the investors trust in the business environment. Right now, it has indicators closer to the Baltic countries, indicating a probability of an even deeper economical crisis, the likes countries like Estonia, Latvia and Lithuania have already experienced. The Economical Sentiment Indicator (ESI) of Romania increased to 66.8 in June from 65.6 in May and April. However, since the beginning of... [...]

The mix formed by the financial crisis and the new regulation of the National Bank concerning the loans seem to be fatal for the crediting system in Romania. Even the bankers recognize it and they appreciate that if those two events hadn’t taken place in the same time, the loaning wouldn’t have frozen, it would have just slowed down.  October is considered one of the blackest periods since the post Decembrist loaning period,... [...]

According to GEO no.127 of October 8, 2008 in order to change and complete the Law no. 571/2003 related to the Fiscal Code, taking into consideration the difficulties recorded on the international financial market and the negative effects on the domestic capital market it is imposed adopting of some prompt fiscal measures which to support the Romania stock exchange market. The fiscal measures proposed by the ordinance have as goal to... [...]

In the report on the private pensions system on the third quarter 2008 of the Romanian Private Pension Supervisory Commission (CSSPP) it is noticed the fact that on the Second Pillar the participants with statute of non-resident in Romania represent only 0,18% of the total. Out of a number of 3,779 million persons with at least one monthly contribution, 6.800 are non-resident. The non-resident participants are the foreign citizens that... [...]

The company BCR Administrare Fond de Pensii draws monthly over 20% out of the total of new contracts signed for the mandatory private pension system (2nd Pillar). According to the data supplied by NHPOSIR, during the last six months over 7.000 persons have joined to the fund administrated by BCR. “BCR Administrare Fond de Pensii is the only fund that had recorded the constant monthly performance of drawing in over a fifth of the... [...]