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.
Talent Connect Inc. is proud to announce that it has been officially designated by the U.S. Department of State as a sponsor for the J-1 Visa Intern and Trainee Programs. This prestigious designation empowers Talent Connect Inc. to facilitate structured and guided training programs in the United States for eligible international university students, recent graduates, […]
Romanian president Nicușor Dan is present Thursday and Friday, June 26-27, in Brussels, at the first European Council since he took office as president. EU leaders at the event are set to discuss a range of topics, such as the situation of the war in Ukraine, the crisis in the Middle East, security and defense […]
Celebrities will no longer be allowed to appear in gambling advertisements on TV, radio, and online, following a decision voted on Wednesday, June 26, in a public session of Romania’s audiovisual watchdog, the National Audiovisual Council (CNA). This provision is part of a series of amendments made to the Audiovisual Regulatory Code, the secondary legislation […]
Hidroelectrica, the largest energy provider in Romania, announced on Thursday, June 26, that it had awarded the tender for a floating photovoltaic panel system within the “Nufărul Pilot Project.” The public procurement was initiated through an open tender, with an estimated value of RON 47.2 million (EUR 9.5 million) excluding VAT. Two economic operators submitted […]
Bucharest is set to bring back its tourist bus service, following a decision by the city’s General Council on Wednesday, June 25, to establish a dedicated public transport line called “Bucharest City Tour,” Agerpres...
Romania has made limited progress in enhancing its framework against money laundering, terrorist financing, and proliferation financing, according to a recent report from the Council of Europe’s committee of experts on the evaluation of anti-money laundering measures and the financing of terrorism, or Moneyval. The committee noted that the country has taken several steps to […]
