Crisis 
WB: Romania Is Vulnerable to European States Debt Crisis
According to a World Bank report released today, Romania finds itself among states that are vulnerable to the debt crisis in Europe, because its financial sector is closely linked to those highly indebted states (Greece, Spain, Portugal, Ireland and Italy). "Also at risk are countries whose financial sectors are closely linked to these highly indebted countries. Albania, Bulgaria, Romania, and Serbia are economies that have benefitted in the past from heavy capital inflows from Greek financial institutions," the World Bank said in its summer 2010 Global Economic Prospects report. A default or a major restructuring of the most indebted high-income states in the EU could have major consequences for the global economy, because the full-fledged recession these countries would be plunged into, but also because of the potential knock-on effects on crediting institutions elsewhere in the world, WB noted. citeste mai mult
Romanian Premier to Seek Confidence Vote for Anti-Crisis Law Package Thursday
Romanian Government will seek a confidence vote in the Parliament for the draft law comprising anti-crisis measures on Thursday, Environment Minister Laszlo Borbely said today. On Wednesday the Government will discuss the anti-crisis measures and will put them down in the letter of intent to the International Monetary Fund. Prime Minister Emil Boc told the press earlier today that the measures will take the form of a draft law, not an emergency ordinance. Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable Smso-style-name:Table Normal; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:Times New Roman; mso-ansi-language:#0400;... citeste mai mult
Romanians are unreasonably optimistic regarding the future evolution of the crisis
Liviu Voinea, Chief Executive Officer of the Group of Applied Economics (GEA), said Romanians optimism concerning the evolution of the economic crisis is unmotivated because their reaction towards consumption is difficult to predict, since they were never confronted with a similar recession. "After nine years of economic growth, no consumer knows how to react in crisis, because he has no comparison. Thus, it is very difficult to predict the consumer's reaction", Voinea said Tuesday during the "Romania 2009 Retail Forum". He explained that the first half of 2010 will be more difficult, as Romanians will no longer have their 2008 reserves to survive the crisis and so they will prefer cheaper products. "2008 was a very good year, while 2009 had a stagnation effect. It was either a denial of the crisis, or a compensation of the 2008 results that will no longer exist in the future", Voinea added. According to him, the unemployment... citeste mai mult
Romania has three executives but not a functional government
It’s been seven days since Romania decommissioned the government, and the current situation could drag on until after the presidential elections. The business environment warns about the dangers of this strategy and emphasizes the need for a functional Executive. Most people in the business sector do not have preferences about who should run the government, since the new Cabinet will be replaced after the presidential elections. The Romanian political crisis has entered overtime. The Chief of State and political party PD-L on one side and the Parliament on the other. So at this moment, Romania does not have a legitimate government but has three different prime-ministers: Emil Boc as acting prime-minister, Lucian Croitoru – assigned by president Basescu, and Klaus Iohannis – proposed by the majority of the parliament. With the political standoff still unresolved, a solution could be found in the hands of the Constitutional Court, called in to... citeste mai mult
The anti-crisis measures of the Romanian government, hidden under the IMF loan
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 of transparency practiced by the cabinet and by the constant disputes that erupt between political factions. Mr. Rosca also revealed that the government’s strategy to loan money from the International Monetary Fund (IMF) is wrong, because all it does is to fuel the deficit and does not stimulate production, like it should. According to him this will automatically lead to another loan, this time, without taking into consideration the country’s reimbursement possibilities. On a final note, Ion Rosca said that because... citeste mai mult
The anti-crisis measures of the Romanian government, hidden under the IMF loan
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 of transparency practiced by the cabinet and by the constant disputes that erupt between political factions. Mr. Rosca also revealed that the government’s strategy to loan money from the International Monetary Fund (IMF) is wrong, because all it does is to fuel the deficit and does not stimulate production, like it should. According to him this will automatically lead to another loan, this time, without taking into consideration the country’s reimbursement possibilities. On a final note, Ion Rosca said that because... citeste mai mult
Earnings evolution in Romania after nine months of crisis –financing: +34%, budgetary: - 7%
Employees earnings from the financial intermediation, energy and insurance sectors, have recorded the most significant accession since the international crisis started to show its effects on the Romanian market. During the October 2008 – June 2009 period, the average net salary in Romania saw a 3.9 percent increase. So, if at the beginning of the fourth trimester of last year the average net salary was 1.327 Lei, at the end of the first six months of 2009 the average net salary reached 1.379 Lei. During October 2008 the average salary in the financial intermediation sector was 2.935 Lei. At the end of the year, the average earnings of a Romanian employee, in this sector, grew by 1.000 Lei compared to last year, reaching 3.935 Lei. In this conditions, the average earning on this market recorded a 34% increase, in full economical degradation. On the second spot in the top most significant salary increases are the employees in the utilities sector. Here, the... citeste mai mult
Romanian tourism dropped by 40% in six months, due to crisis
In the first six months of the year, tourism agencies recorded sales drop over the values estimated at the beginning of 2009. According to some sources Romanian tourism saw a staggering 40% drop comparative to the same period of last year. Overall, the most affected segment was for external destinations, especially the ones that included charter travel, where the fill rate reached only 60%. This is also the reason why the Romanian market is now full of special tourism offers , like city break package. The crisis also affected the consumer’s behavior which became more responsive to special offers and last minute offers. They also turned to cheaper destinations and to individual tourism. On the upside, the deluxe tourism segment doesn’t show signs of recession. Companies report a 50% increase compared to last year. The World Tourism Organization revised to 6% it’s drop estimates for the year in course. Translated by: Tradu.org citeste mai mult
Signs of economical rejuvenation seem to be delayed in Romania and the Balkans
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 March, the indicator values that reflect the investors’ confidence in the local business medium placed Romania at the same level with the Baltic countries. Practically, the investors trust in the Romanian market stalled, recording only a small increase of 2.7 points. This is reported after Romania saw a 39.5 point drop, between October 2008 –March 2009, in the trust companies have in the country’s economical potential. Translated by: Tradu.org citeste mai mult
Banks will start to grant credits at increased level hardly in spring
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, and November or the following three months don’t seem to be different. It’s difficult to say what has affected more the crediting system in Romania: the international financial crisis or the new regulations imposed by the National Bank of Romania. The bankers say that it would have been better if those two events hadn’t taken place concomitantly. And because the crisis can’t be controlled or scheduled, the new loaning regulations are the ones that should have been postponed. On these terms we would have... citeste mai mult
