The public administration sector's financial assets in Q1 2025 decreased by 1.1 percentage points to 25.7% of GDP, compared to the year-ago period, according to data published by the National Bank of Romania (BNR).According to the cited source, the trend was mainly generated by the decrease in the availability of cash and deposits, whose stock decreased (-9.1%) to 6.5% of GDP, in the political and economic context of the election period.Loans granted by public administrations increased (+2.4%) to 2.1% of GDP (down 0.1 percentage points compared to Q1 2024). Equity participations and shares/investment fund units remained at the same level of 9.8% of GDP. Other accounts receivable (taxes, social contributions, trade receivables, amounts owed by economic agents to public authorities, and external receivables) increased by 0.2 percentage points to 7.1% of GDP.Financial commitments of public administrations, expressed as a percentage of GDP, increased by 3.7 percentage points, reaching 60.4% at the end of Q1 2025."This development was mainly driven by the increase in debt securities (+2.8 percentage points during the period under review), to 41.2% of GDP, as a result of bond issues launched by the Ministry of Finance on the domestic and foreign markets to finance the budget deficit and refinance government debt," BNR points out.Committed government loans increased by 23.7% compared to Q1 2024, due to the issuance of non-negotiable retail government securities under the Tezaur program. In relative terms, the indicator increased by 1.2 percentage points to 8.8% of GDP.Other accounts payable reached 9.4% of GDP.The public administration sector's net financing requirement was 2% of GDP in Q1 2025, compared to 2.4% of GDP in Q1 2024. The central government recorded a net financing requirement of 2.3% of GDP (compared to 2.6% of GDP in Q1 2024). The local administrations' net financial requirement stood at 0.3% of GDP (0.2% of GDP in Q1 2024). Social security administrations recorded a net financing requirement of 0.04% in Q1 2025 (compared to 0.1% of GDP in Q1 2024).
Romania’s main trade union confederations are preparing coordinated protest actions and considering a general strike in response to the government’s new fiscal and austerity measures, Economica.net reported. The decision was made during a meeting of union leaders evaluating the impact...
The Coalition for the Digital Economy, which brings together companies such as Uber, Glovo, Wolt, Bolt, Bringo, and Lime, in response to Ziarul Financiar's claims that the drivers of the ride-hailing operators are avoiding taxes and social security contributions, assured that this is not the case. ...
Romanian energy group OMV Petrom (BVB: SNP) will decide by the end of September on the special dividend, based on the progress of the investment projects, the impact of the present and future fiscal reforms implemented by the government, and the market conditions, the company's CFO Alina Popa explained, quoted by Cursdeguvernare.ro. ...
Romania’s teachers’ unions announced on August 5 that education minister Daniel David has pledged to ask prime minister Ilie Bolojan to drop some of the most contested measures from the government’s first package of reforms, Hotnews.ro reported. The...
Although the Romanian government is preparing two additional extensive reform packages, targeting mainly the spending cuts and a higher efficiency in the public administration, the 7% of GDP target for this year will not be met, with a level above 8% of GDP more likely, according to a research report by UniCredit Romania. "Yet, we […]
Deputy prime minister Tanczos Barna stated on August 4 that Romania’s second package of deficit-reduction measures cannot move forward without addressing magistrates’ pensions, Economedia.ro reported. He warned that failure to reform the system would jeopardise...
