The Romanian banks hold in their portfolio Government papers (bonds and bills) worth 7% of GDP, the highest amount in Europe, and this might bring them significant losses if the interest rates are rising and the yield curve flattens, according to Florian Neagu, deputy head of the macrostability division of the National bank of Romania (BNR), quoted by Economica.net. The losses potentially incurred by banks under adverse scenarios may reach 17.6% of the portfolio of assets and liabilities sensitive to interest rates, he explained. The banking system’s profitability is high, and the solvency ratio is strong, he said, adding that all these can deteriorate under certain circumstances. In fact, the Romanian banks’ profitability (13% return on equity versus 7.6% in EU) is above the EU average, and above the profitability in the real sector, the BNR official stated. The solvency ratio (22% versus 17.1% in the EU) is also above average, and the non-performing loans ratio is still small (3.7%) even if above the EU average (2.5%). However, the solvency ratio can lose 2pp from distributing dividends, another 2pp when building up provisions next year. The losses generated by adverse developments of the interests and yield curve would come on top of these two effects.
Cris-Tim Family Holding (BVB: CFH), the market leader in cold cuts and ready meals in Romania, reported revenues of RON 853.1 million (EUR 170 million) for the first nine months of 2025, a 3% y/y increase, supported by 5% growth in the Cold Cuts segment and a strong 21% advance in ready meals. Profitability improved […]
Romania’s Fiscal Council expressed cautious optimism that the fiscal measures adopted in the second half of 2025 could reduce the budget deficit to around 6.5% of GDP in 2026, according to its assessment of the second budget revision approved by the government. The Council stated that such an outcome would represent a significant improvement from […]
Romania’s public debt increased by another RON 14 billion (EUR 2.8 billion) in August after the RON 30 billion leap in July, to reach RON 1.084 trillion (EUR 213.8 billion) at the end of the month, according to data published by the Finance Ministry. After the Treasury raised nearly EUR 5 billion with FX bonds […]
The Conservation Carpathia Foundation has been awarded the Order of Merit of Germany for its long-term conservation work in Romania’s Făgăraș Mountains. Its executive directors, Barbara and Christoph Promberger, received the distinction from president Frank-Walter Steinmeier during an official ceremony held on December 1 at Schloss Bellevue in Berlin. The ceremony honored 20 individuals whose […]
Romania has chosen its first team to compete in the prestigious Bocuse d’Or Europe culinary competition, marking the country’s official entry into the global Bocuse d’Or circuit. Chef Vasilică Bejenaru, together with coach Liviu Preda and commis Andrei Fabian Lupoi, won the inaugural National Selection held last week in Brașov. The team will represent Romania […]
President Nicușor Dan used his National Day speech on Monday, December 1, to offer a blunt view of Romania, which he said is still “a corrupt country,” but noting that the situation has improved over the past 20 years. Speaking at the Cotroceni...
