Financial Press Review, 11 April

Unfortunately, the recent financial news do not tell us to relax, but, since Romanians’ second nature is optimism, we can only wait confidently new developments in capital markets during financial turmoil times.

From the Capital we learn that debt to banks has exploded, and it has spiked by 72 percent in one year and it is six times bigger than in the run-up to the meltdown, amounting to around 4 billion Euros in February.

The rise was brought by the ever increasing number of Romanians who cannot or will not pay off their loans, leasing or utility of telephone bills.

Repomen, be them employees of the creditor or freelancers, claim they prefer amiable procedures to lawsuits or selling off warranties.

The Săptămâna Financiară points out the argument about the events in October 2008 that caused interest rates on the interbank market to rise to over 80 percent per year.

The Governor wondered by the banks repeatedly preferred to borrow at 80 percent per year on the interbank market, instead of resorting to the Lombard 14.5 percent rate from the NBR.

In the Ziarul Financiar we read that BNP Paribas giant throws into oblivion the authorities’ convergence plan to adopt the European currency in 2015, indicating that it will only be possible in 2024.

This is the most pessimistic forecast of a financial group regarding the adoption of the Euro, after diplomatic tensions between Romania and France.

The French estimate that Romania will adopt the Euro at a 3.8 RON for a Euro, after three years in the exchange rate machine.

The Curierul Naţional informs that a think-tank from the IMF is on a technical mission at the National Agency for Fiscal Administration headquarters, in order to assist with indirect control methods and rise in conforming degree among natural persons with significant income or fortune.

The Bursa informs that for the first time in 30 months, the price of Brent oil exceeded 126 dollars a barrel in London, while investors are skeptical that output in Libya will resume when the conflict ends.

Also, with the significant depreciation of the dollar, an ounce of gold is worth 1,476.4 dollars.

In turn, the European currency appreciated at the end of last week, reaching the highest rate of the past 15 months: 1.4489 dollars.

Translated by: Gabriela Lungu
MA Student, MTTLC, Bucharest University