• ROBOR index over 3 months falls to 3.15%
At the end of last week, the ROBOR index over 3 months reached a level of 3.15% on the interbank market – a slight decrease from the previous value, according to data from the National Bank of Romania. The ROBOR index over 6 months rose by 0.01 points, reaching 3.24%, while the ROBOR index over 9 months remained constant, at a level of 3.25%.
• World Bank to loan of 400 million Euro to Romania for catastrophic events
The World Bank’s Council has approved a 400 million Euro loan to be granted to Romania for policy development on disaster risk management. The loan will include a Catastrophe Deferred Drawdown Option (CATDDO). "Cataclysmic events generate a significant financial shock for Romania, which could trigger an economic downturn, disproportionately affecting the most needy. Increasing resilience to shocks is a central element of our new strategy for Romania, as well as the core of efforts to promote inclusive growth. We are therefore very pleased to support a program that will enhance Romania's capacity to prepare for and manage natural disasters and provide the necessary funding to provide immediate relief to those in need of disaster" said Tatiana Proskuryakova, country director of the World Bank for Romania and Hungary.
• Number of individuals with overdue debt is approaching 700,000
According to data recorded by the Credit Bureau, at the end of April the number of individuals who recorded overdue bank payments for more than 30 days reached 693,440 individuals – up 4% compared to the same period of the previous year. This number represents the highest recorded level over the past year.
• Number of insolvencies increases by 12% in the first 5 months of the year
According to the National Trade Register Office, the number of companies and authorised individuals (PFAs) declaring insolvencies increased by 11.97% in the first five months of this year, reaching 3,686 units. Most companies and PFAs in insolvency are from Bucharest (737 units), Bihor County (237), Iași County (213), and Timiș County (181). As for fields of activity, the largest number of insolvencies occurred in the wholesale and retail trade, and repair of motor vehicles and motorcycles (1,130 units).
• A quarter of Romania's employed population is working in agriculture
According to data published by Eurostat, more than 2 million Romanian citizens – almost a quarter of the employed population (23.7%) – were employed in agriculture in the previous year. At the European Union level, the average of the employed population in agriculture is 4.5% - Romania has occupied a leading place in this segment in the previous years as well.
• Banking sector, net profit of over 5 billion Lei in 2017
According to the annual report published by the National Bank of Romania, in 2017, the banking sector – represented by 35 credit institutions in the banking market – cumulated a net profit of 5.335 billion Lei – higher than that registered in 2016. In the same period, the National Bank of Romania recorded a profit of 186.7 million Lei in 2017 – 50% more than in 2016. According to BNR Governor Mugur Isărescu, 80% of the profit (149.3 million Lei ) was transferred to the state budget.
• Eco-friendly car sales doubles in the first 5 months of the year
According to the Association of Automobile Manufacturers and Importers (APIA), between January and May 2018 the number of ecological cars sold in Romania reached 1,372 units - almost double the 726 units sold in the same period of the previous year. According to APIA, out of all traded vehicles, 1,084 are hybrid models and 288 are 100% electric models.
Sources: Agerpres, Ziarul Financiar, Profit.ro
• Hard Rock Cafe, revenue of 4 million Euro
Hard Rock Cafe restaurant finished last year with revenues of 18.2 million Lei (the equivalent to 4 million Euro), registering a 12% increase in turnover, and thus staying in the Top 10 of the largest restaurants and cafes in Romania. This business has been on an upward trend since 2008, and its revenue comes from daily operations and from organizing events (over 100 events over a year).
• Xerox turnover in Romania remains constant
Local subsidiary of the US company Xerox Corporation closed the previous year with a turnover of 93.2 million Lei (the equivalent of 20.4 million Euro) – equal to the one reported in 2016, according to data published by the Ministry of Public Finance. The company recorded a net loss of 5.7 million Lei, representing a significant decrease compared to the net profit of 6.8 million Lei reported for 2016.
• Piraeus Bank Romania, acquired by JC Flowers
The transaction through which the international investment fund JC Flowers acquired Piraeus Bank Romania – the thirteenth bank on the local market – was approved and thus finalised; the value of this transaction, albeit officially undeclared, was estimated by market sources at 35 million Euro.
• AFI acquires more land near the AFI Cotroceni Mall
AFI Europe real estate developer, owner of AFI Cotroceni Mall and AFI Park, has acquired a 43,000 sqm land in their vicinity. The transaction value amounted to 23 million Euro. "The acquisition will enable us to develop our projects in Bucharest, as part of our efforts to expand our operations in the office, retail and residential market. The first post-acquisition step will be to identify the best land use that we can build up to 100,000 square meters", said Dorin Klein, AFI Europe Romania's CEO.
• UTI Group, back on a positive trend with a profit of 4 million Lei
IT&C and security solutions provider UTI Group reported for the previous year a lower turnover than the one reported in 2016 (386.6 million Lei, down by 7 percent), and a net profit of 4 million Lei – thus marking a return in comparison to the net loss registered in 2016, worth 40 million Lei.
• Delaco Distribution, profit three times lower in 2017
The distribution company of the Delaco Dairy Producer, Delaco Distribution, posted last year a net profit of approximately 9.5 million Lei (the equivalent to 2 million Euro) – three times lower than the net profit reported in the previous year, according to data published by the Ministry of Finance. The company continued to increase its number of employees in 2017, currently employing a team of 448 employees.
• Arsenal Park, a business of nearly 2 million Euro
Arsenal Park's adventures center in Orăștie finalized 2017 with businesses worth 1.9 million Euro, and plans a 30% increase for the current year, with a turnover of 2.4 million Euro. "Up to now, we have invested half a million Euro on a climbing route for children aged four to eight, and in a nightclub. We want to continue the development and make an indoor shooting range and expand the aqua park”, said Marius Cristescu, one of the Romanian entrepreneurs who developed this business.
Sources: Ziarul Financiar, Profit.ro, Capital