The Greek financial turmoil could postpone admission of emerging European countries into the eurozone, according to a poll by Reuters among 44 leading analysts.
Bulgaria, the Czech Republic and Poland could adopt the single currency in 2015, with Estonia standing the best chances, expected to lead the pack in 2011.
In autumn 2009, analysts predicted the Baltic country would adopt the euro in 2012.
European policymakers will measure euro aspirants against the Maastricht adoption criteria with a new intensity, according to the poll.
"The euro zone countries will want to be absolutely sure that they are not bringing a new 'Greece' to the club," said Diego Iscaro, economist with Ihs Global Insight.
Other analysts say it is not a matter of who will join the club but who will pack up and leave.
The poll showed that only Estonia will stick to its guns to join the eurozone after finance minister Jurgen Ligi last week announced he expects the country will adopt the euro in 2011.
The analysts singled out keeping budget deficit beneath the three per cent cap as the toughest challenge facing aspirants.
Poland, the region’s best performer, run up a shortfall of 7.2 per cent of GDP, jeopardising the government’s ERM-II target of 2012.
The most daunting challenge facing Bulgaria and Romania is reining in inflation.
Source: Dnevnik.bg
Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Romania's GDP declines in Ist quarter
9th June. Romania's gross domestic product or GDP declined a seasonally adjusted 6.2% year-on-year in the first quarter, in contrast to a 2.9% growth in the fourth quarter, the National Institute of Statistics said Tuesday.
On an unadjusted basis, the GDP dropped 5.7% annually in the first quarter compared to a 2.3% rise in the preceding quarter.
Sequentially, the GDP dropped 4.6% in the first quarter compared to a 2.8% decline in the previous quarter.
On an unadjusted basis, the GDP dropped 5.7% annually in the first quarter compared to a 2.3% rise in the preceding quarter.
Sequentially, the GDP dropped 4.6% in the first quarter compared to a 2.8% decline in the previous quarter.
Romania's trade gap narrows 61.6% y/y in April to EUR 835.1m
Imports were slashed by 40 percent in April and exports fell 23 percent on the similar month of the previous year, shrinking Romania's commercial deficit for the seventh consecutive month to 835.1 million euros, preliminary data of the country's statistics body INS show. In the national currency, Romania's trade gap lost 55.77 percent in April year-on-year, to 3.529 billion lei. Imports reduced to 2.97 billion euros and exports compressed 23 percent to 2.14 billion euros. On the imports side, the largest decline was seen in the trade with states outside the European Union (EU), where Romania imported merchandise worth 834.7 million euros, 40.8 percent less than the similar month of 2008. Imports from the other 26 EU members slided 39.6 percent in April to 2.14 billion euros. As to exports, Romania shipped merchandise worth 580.9 million euros to countries outside the EU, 31 percent less than in April last year, while exports with EU members only reduced 19.4 percent to almost 1.56 billion euros. Exports dropped 16.8 percent and imports slipped 5.77 percent in April on the previous month. Imports also dropped a total 36.4 percent in the first four months of the year to 11.56 billion euros and exports reduced 20.3 percent to 8.7 billion euros in the similar period, leading Romania's trade gap to narrow 60.68 percent to 2.86 billion euros in the period January – April. Machines and transportation equipments continued to have the largest weight in Romania's exports, with 40.8 percent, followed by fuels (6.4 percent), food stuff, beverages and tobacco (5.8 percent), raw materials (5.6 percent) and chemical products (4.2 percent). Other manufactured products accounted for 37.2 percent of the total exports. Romania imported mostly machines and transportation equipments (32.5 percent), followed by chemical products (14.8 percent), food stuff, beverages and tobacco (9.5 percent), fuels (8.4 percent) and raw materials (2.7 percent). Other manufactured products accounted for 32.1 percent of the total imports. |
09 iunie 2009 11:17 |
Romania set ups joint venture with Gazprom
Romania's Romgaz has set up a joint venture with Russia's Gazprom for underground gas storage facilities that will boost the country's ability to build gas stocks and could improve supplies to the European Union, the economy minister said Monday.
Romgaz and Gazprom each own 50 percent of the joint venture, which will store natural gas and sell it directly, said minister Adriean Videanu. Romania signed a memorandum on Friday and sent it to Moscow on Monday, he said.
Videanu said that under the deal some 5-6 billion square meters of natural gas could be stored in Romania. Two billion square meters alone will be stored at the deposit in Roman Margineni in northeast Romania, he said.
"This will bring (Russian) gas closer to the European Union which is of special value in winter," he said. The EU relies on about 25 percent of its needs from Russia.
East European countries suffered during a gas dispute in January, when Russia halted supplies through Ukraine over 2009 gas prices and alleged Ukraine was stealing Russian gas destined for Europe.
More than 15 countries in the Balkans and Eastern Europe were left scrambling for alternative energy sources; factories shut and millions of people shivered in unheated homes.
Romania is less reliant than some of its neighbors on Russian gas. It produces about 65 percent of its own needs and imports about 30 percent from Russia. However, during the gas crisis, there was concern that underground storage facilities do not have a large enough capacity for prolonged disruption in supplies.
Romania was importing gas from Russia through the German company Wintershall AG.
It is the first direct joint initiative in natural gas between the countries since the 1989 anti-communist revolt.
Romgaz and Gazprom each own 50 percent of the joint venture, which will store natural gas and sell it directly, said minister Adriean Videanu. Romania signed a memorandum on Friday and sent it to Moscow on Monday, he said.
Videanu said that under the deal some 5-6 billion square meters of natural gas could be stored in Romania. Two billion square meters alone will be stored at the deposit in Roman Margineni in northeast Romania, he said.
"This will bring (Russian) gas closer to the European Union which is of special value in winter," he said. The EU relies on about 25 percent of its needs from Russia.
East European countries suffered during a gas dispute in January, when Russia halted supplies through Ukraine over 2009 gas prices and alleged Ukraine was stealing Russian gas destined for Europe.
More than 15 countries in the Balkans and Eastern Europe were left scrambling for alternative energy sources; factories shut and millions of people shivered in unheated homes.
Romania is less reliant than some of its neighbors on Russian gas. It produces about 65 percent of its own needs and imports about 30 percent from Russia. However, during the gas crisis, there was concern that underground storage facilities do not have a large enough capacity for prolonged disruption in supplies.
Romania was importing gas from Russia through the German company Wintershall AG.
It is the first direct joint initiative in natural gas between the countries since the 1989 anti-communist revolt.
Vestas to supply wind turbines in Romania, Italy
2 April 2009 - Danish wind turbine manufacturer Vestas Wind Systems has received an order for a total of 76 units of the V90-3MW turbine for two projects in Romania.
The order has been placed by EDP Renovaveis.
The contract comprises supply, installation, a VestasOnline Business supervisory control and data acquisition solution, as well as a five-year service agreement. The first turbines are expected to be installed by the end of 2009.
The total annual production of the two wind power plants will save the environment from more than 195 500 tonnes of CO2 emissions per year.
Meanwhile, Vestas s has received an order from EDF Energies Nouvelles for delivery of 37 V90-2MW wind turbines for installation in Sardinia, Italy.
The contract includes supply, installation and commissioning of the turbines and a five-year service agreement. The wind turbines will be delivered to a project in the municipality of Bonorva in Sardinia during 2009 and 2010.
With a total installed capacity of 74 MW, the wind power plant is expected to annually save the environment from approximately 48 500 tonnes of CO2 emissions and will cover the yearly electricity consumption of almost 50 000 Italian households.
The order has been placed by EDP Renovaveis.
The contract comprises supply, installation, a VestasOnline Business supervisory control and data acquisition solution, as well as a five-year service agreement. The first turbines are expected to be installed by the end of 2009.
The total annual production of the two wind power plants will save the environment from more than 195 500 tonnes of CO2 emissions per year.
Meanwhile, Vestas s has received an order from EDF Energies Nouvelles for delivery of 37 V90-2MW wind turbines for installation in Sardinia, Italy.
The contract includes supply, installation and commissioning of the turbines and a five-year service agreement. The wind turbines will be delivered to a project in the municipality of Bonorva in Sardinia during 2009 and 2010.
With a total installed capacity of 74 MW, the wind power plant is expected to annually save the environment from approximately 48 500 tonnes of CO2 emissions and will cover the yearly electricity consumption of almost 50 000 Italian households.
Romania is not affected by the Moldova Gas Pipeline blast
BUCHAREST, April 1 (Xinhua) -- Romania is not affected by the explosion of the gas pipeline in the neighbouring Republic of Moldova and the gas supplies are at normal parameters, declared on Wednesday Ioan Rusu, general director of state-run national gas transporter Transgaz.
"We were informed of the explosion. Gas flow to our country is normal, we continue to import the same quantity and Romania is not affected. The flow was reduced to half only for the pipelines transiting our country, one that goes to Bulgaria and other two that transport gas to Turkey," Ioan Rusu was quoted as saying by local media News In.
The pipeline exploded Wednesday morning around 5.30 a.m. local time (GMT 03:30) in southeastern Moldova.
"We were informed of the explosion. Gas flow to our country is normal, we continue to import the same quantity and Romania is not affected. The flow was reduced to half only for the pipelines transiting our country, one that goes to Bulgaria and other two that transport gas to Turkey," Ioan Rusu was quoted as saying by local media News In.
The pipeline exploded Wednesday morning around 5.30 a.m. local time (GMT 03:30) in southeastern Moldova.
AP: Romania's Central Bank Keeps Rates Unchanged At 10%
NEW YORK -- Romania's central bank decided to keep its monetary policy rate unchanged at 10% on Tuesday despite the sharp economic downturn.
The decision to stay on hold "reflects ongoing concerns about the currency," said Neil Shearing, Emerging Europe economist at Capital Economics. "Our forecast for rates to hit 8% by the end of the year is now in doubt, but we still expect gradual cuts in interest rates from the second half of this year." Romania will receive a financial support package totaling about $27 billion from several multinational institutions, including the International Monetary Fund and the European Union. "An IMF rescue package does not alter the fact that the leu remains fundamentally overvalued," Shearing said.
The decision to stay on hold "reflects ongoing concerns about the currency," said Neil Shearing, Emerging Europe economist at Capital Economics. "Our forecast for rates to hit 8% by the end of the year is now in doubt, but we still expect gradual cuts in interest rates from the second half of this year." Romania will receive a financial support package totaling about $27 billion from several multinational institutions, including the International Monetary Fund and the European Union. "An IMF rescue package does not alter the fact that the leu remains fundamentally overvalued," Shearing said.
Romania: Pension point to increase to 718 lei
Bucharest, March 31 /Agerpres/ - Starting on Wednesday, the pension point will increase to 718 lei, this increase being stipulated in the draft budget for 2009.
On Wednesday too they will introduce the minimum guaranteed social pension amounting to 300 lei (1 euro=4.23 lei)
The next increase in the pension point is scheduled for October 1, when it increases to 732 lei. On that date too the social pension is to grow to 350 lei.
As for the salaries, a possible rise will be discussed after April 15 and will depend on the economic progress in the first quarter.
The minimum salary is currently 600 lei and Minister of Labour Maria Sarbu estimated two weeks ago that it would probably stay the same all this year
On Wednesday too they will introduce the minimum guaranteed social pension amounting to 300 lei (1 euro=4.23 lei)
The next increase in the pension point is scheduled for October 1, when it increases to 732 lei. On that date too the social pension is to grow to 350 lei.
As for the salaries, a possible rise will be discussed after April 15 and will depend on the economic progress in the first quarter.
The minimum salary is currently 600 lei and Minister of Labour Maria Sarbu estimated two weeks ago that it would probably stay the same all this year
Romania's Oltchim to invest 500 mln euros by 2012
BUCHAREST, March 27 (Reuters) - Romanian state-owned chemical plant Oltchim OLTC.BX will invest roughly 500 million euros ($670 million) by 2012, mainly on acquisitions, upgrades and boosting production, the economy ministry said on Friday.
The company, which plans to borrow the cash, has asked the government to guarantee 80 percent of the loans. European Union state Romania will wait for EU approval before issuing guarantees, the ministry said.
Oltchim had long-term debt of 637 million lei ($201 million) at the end of 2008.
Its investment plans includes buying the Arpechim petrochemical refinery from the country's top oil and gas group Petrom SNPP.BX, owned by Austria's OMV (OMVV.VI).
On Friday, Oltchim shares traded 2.4 percent up on the day at 0.1720 lei, compared with a year low of 0.1090 hit on March 2.
The company, which plans to borrow the cash, has asked the government to guarantee 80 percent of the loans. European Union state Romania will wait for EU approval before issuing guarantees, the ministry said.
Oltchim had long-term debt of 637 million lei ($201 million) at the end of 2008.
Its investment plans includes buying the Arpechim petrochemical refinery from the country's top oil and gas group Petrom SNPP.BX, owned by Austria's OMV (OMVV.VI).
On Friday, Oltchim shares traded 2.4 percent up on the day at 0.1720 lei, compared with a year low of 0.1090 hit on March 2.
Romania, Latvia and Estonia could get new EU funding
Romania, Latvia and Estonia could all be in for extra funding after the EU agreed a package aimed at supporting non-eurozone countries.
Under the terms of a deal thrashed out by political leaders in Brussels, member states who have not adopted the single currency will be able to draw on a pool worth €50 million (£47 million) if they appear to be close to defaulting on their public debt.
As well as this, the politicians agreed to increase the amount of cash offered to the International Monetary Fund (IMF).
British prime minister Gordon Brown said: "We've agreed the balance of payment support of €50 billion, we've agreed to support the IMF with loans of up to around $100 billion (£69 billion) as well as agreeing our own €5 billion fiscal package."
Recently, Reuters reported that Romanian president Trainan Basescu has revealed that the country is looking to take a €20 million loan from the IMF and EU in order to help it through the economic downturn.
Under the terms of a deal thrashed out by political leaders in Brussels, member states who have not adopted the single currency will be able to draw on a pool worth €50 million (£47 million) if they appear to be close to defaulting on their public debt.
As well as this, the politicians agreed to increase the amount of cash offered to the International Monetary Fund (IMF).
British prime minister Gordon Brown said: "We've agreed the balance of payment support of €50 billion, we've agreed to support the IMF with loans of up to around $100 billion (£69 billion) as well as agreeing our own €5 billion fiscal package."
Recently, Reuters reported that Romanian president Trainan Basescu has revealed that the country is looking to take a €20 million loan from the IMF and EU in order to help it through the economic downturn.
Time Warner Goes Euro, Buys CME Stake
Time Warner has gone old-school of sorts--buying a stake in CME, the 15-year old broadcasting company with interests in Central and Eastern Europe. Time Warner's investment comes to $241.5 million--or a 31% interest in CME, Central European Media Enterprises. For that investment, Time Warner also gets to place two members on CME's board of directors.
As part of the deal, Warner Bros. and CME have also announced a partnership to launch more TV channels in the region. Time Warner has said for some time that it wants to expand its international TV channel business.
The good news for Time Warner is that it is buying the company at near its historically low stock price--$7.50--around eight times cash flow (earnings before interest taxes, depreciation, and amortization). CME, like most other broadcasters around the world, has been hurt by slowing ad revenues.
CME broadcasters go to 22 countries, including stations in Bulgaria (TV2 and Ring TV), Croatia (Nova TV); Czech TV (TV Nova, Nova Cinema and NovaSport); Romania (Pro TV and Pro TV International, Acasa, Pro Cinema, Sport.ro and MTV Romania); Slovakia (Markiza), Slovenia (Pop TV, Kanal A) and Ukraine (Studio 1+1 International and Kino).
CMEs's European footprint covers 97 million people. CME was started in 1994 by Ronald Lauder, its chairman.
As part of the deal, Warner Bros. and CME have also announced a partnership to launch more TV channels in the region. Time Warner has said for some time that it wants to expand its international TV channel business.
The good news for Time Warner is that it is buying the company at near its historically low stock price--$7.50--around eight times cash flow (earnings before interest taxes, depreciation, and amortization). CME, like most other broadcasters around the world, has been hurt by slowing ad revenues.
CME broadcasters go to 22 countries, including stations in Bulgaria (TV2 and Ring TV), Croatia (Nova TV); Czech TV (TV Nova, Nova Cinema and NovaSport); Romania (Pro TV and Pro TV International, Acasa, Pro Cinema, Sport.ro and MTV Romania); Slovakia (Markiza), Slovenia (Pop TV, Kanal A) and Ukraine (Studio 1+1 International and Kino).
CMEs's European footprint covers 97 million people. CME was started in 1994 by Ronald Lauder, its chairman.
Romania: Labor Minister: Jobless number might hit 800,000 by year-end
Bucharest, March 23 /Agerpres/ - The number of Romania's unemployed might hit 800,000 by the end of the current year, by 200,000 - 300,000 more than estimations, Minister of Labor, Family and Social Protection Marian Sabu said on Monday.
'I hope for negotiations with the International Monetary Fund to carry on well for us to be able to handle the most vulnerable categories of the population with special attention,' said Marian Sarbu.
The Labor Ministry's budget will be supplemented by RON 500 million, said Minister Sarbu. The extra amount will be spent for unemployment benefits.
'I hope for negotiations with the International Monetary Fund to carry on well for us to be able to handle the most vulnerable categories of the population with special attention,' said Marian Sarbu.
The Labor Ministry's budget will be supplemented by RON 500 million, said Minister Sarbu. The extra amount will be spent for unemployment benefits.
IMF “insists” on 4% contraction of Romanian economy
International Monetary Fund “insists” on a 4% contraction of Romanian economy, at a 2-6% budget deficit assumption, most likely to hover around 3.5% and 4% of GDP, said the chairman of BNS, Dumitru Costin at the end of the meeting with IMF officials.
IMF “insists” on 4% contraction of Romanian economy “IMF ‘insists’ on -4% economic growth, as the economy still has much to suffer from crisis. The current situation is unprecedented and the solutions will not be the classical ones”, said Dumitru Costin
n their -4% economic growth assumption, the representative of the international institution considered the international gloomy context, which led to sharp fall in exports, and poor infrastructure, but also the resilience of the Romanian banking system, unlike in other crisis-hit countries.
BNS president said “there will be no traditional measures like we were used to so far, as the context is different. They will be more flexible”.
“When we asked about the monetary policy, IMF representatives said they would leave more room for maneuver to the National Bank of Romania and to the government. Policies will not be as tight as before”, Dumitru Costin added.
IMF “insists” on 4% contraction of Romanian economy “IMF ‘insists’ on -4% economic growth, as the economy still has much to suffer from crisis. The current situation is unprecedented and the solutions will not be the classical ones”, said Dumitru Costin
n their -4% economic growth assumption, the representative of the international institution considered the international gloomy context, which led to sharp fall in exports, and poor infrastructure, but also the resilience of the Romanian banking system, unlike in other crisis-hit countries.
BNS president said “there will be no traditional measures like we were used to so far, as the context is different. They will be more flexible”.
“When we asked about the monetary policy, IMF representatives said they would leave more room for maneuver to the National Bank of Romania and to the government. Policies will not be as tight as before”, Dumitru Costin added.
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