Lei depositors are penalized by low interest rates, which is a reason why BNR will have to increase interest rates further to prevent a migration to the euro, the so-called Euroization of the economy, Valentin Lazea, chief economist at the national Bank of Romania (BNR), said recently at a specialized conference. The BNR official said that the rate between loans and deposits is kept subunit both for the lei – 0.82 in April as well as for foreign currency – 0.51 in April. ‘In other words, there are fewer loans both in lei and in foreign currency than deposits in banks. What does it mean? It means that the banks have sufficient funds for lending, but they do not find enough possibilities to place them – and this is happening as almost 40% of the Romanian companies are non-bankable – a story which has been lasting for 30 years – nobody wants to deal with it. What is 40% of the non-bankable companies? It means lower capital than 200 lei or negative capital. Lending could exist, but first you need to exist the capitalization of the companies’ Lazea said.As regards lending, the first five months of 2022, despite the war in Ukraine, lending has increased in nominal terms, both the governmental one and the non-governmental. As regards the profitability of the banking system, the BNR head economist said that, after four months, namely between January – April, the cumulated profit is 2.9 million lei, being approximately similar to the previous year, when it was almost 8,2 billion lei, for the whole year.
Two Romanians were arrested during Sunday night, May 11, after robbing empty houses in the evacuated mountain village of Brienz located in the Swiss canton of Graubünden. The village had been evacuated since November due to rock falls. The locality was, however, monitored by the authorities to prevent break-ins. The would-be thieves apparently tried to […]
The European Bank for Reconstruction and Development, or EBRD, has revised its estimates regarding the evolution of the Romanian economy in 2025 downward to 1.6%. The bank expects Romania’s GDP to grow 0.2% less than the 1.8% estimate made in February, and to increase by 2.4% in 2026. Romania's GDP growth slowed to 0.8% in […]
During a meeting on Monday, May 12, the Cluj-Napoca Local Council approved a draft resolution that imposes smoking restrictions in several public spaces in the city, including public transport stations, parks, and sports facilities. The resolution was adopted with 22 votes in favor and 3 abstentions, and will come into effect 90 days from the […]
An internal survey by Romanian Business Leaders, which does not have national representativeness but was answered by 417 entrepreneurs, shows that 62% of entrepreneurs expect to have to make layoffs, while a third expect the number of employees to remain the same. The expected layoffs are directly connected to the possibility of Romania choosing a […]
Romanian Istvan Kovacs will be the main referee for the UEFA Champions League final between Paris St-Germain and Inter Milan, which will be played on May 31 in Munich. The match will be Kovacs’ third European final in the last 4 years. The 40-year-old referee has previously officiated the UEFA Europa Conference League final in […]
Over 70 museums across Romania will open their doors after hours for the 21st edition of Night of Museums, one of the country's most anticipated cultural events. Held on the night of May 17, the event offers visitors a unique opportunity to explore exhibitions, installations, and creative activities in an unconventional, late-night setting. From major […]
