Economic data: Romania

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Romania’s richest man, Dinu Patriciu, is taking advantage of the turmoil among small, London-listed companies to build a pan-European investment empire....

Population's deposits barely see a rise, despite still high interest rates

Romanians are less and less willing to save or the incomes they have available for saving are dwindling, reveal data from the NBR, which point to the lowest annual rise for deposits in RON - of 15.5%....

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The coalition government comprising the Democratic Liberal Party (DLP) and the Social Democratic Party (SDP)—the parties that won the most votes in the parliamentary election in November 2008—has a strong parliamentary majority. However, it may suffer internal divisions and fail to serve a full term.
The coalition is likely to be unstable and prone to conflict, as a result of several factors, including economic policy constraints posed by the international economic crisis, disagreements over corruption and judicial reform, and deep-seated historical animosities between the party leaders. The contest for the presidency, for which an election is due in late 2009, will pit the two government parties against one another and will strain relations.
The government will preside over slowing growth, rising unemployment and falling incomes in 2009. This will make it unpopular with voters, and the risk of labour unrest is high.
Under an IMF-led multilateral financing package, the government will have to rein in budget spending and begin the long-overdue task of reforming the budget system to improve long-term fiscal sustainability.
Romania's target date of 2014 for adopting the euro is ambitious and has become more so in the light of the global economic crisis. The worry is that the crisis will have a much more long-lasting impact on growth prospects, in the context of other already existing negative factors constraining long-term growth. The schedule for euro adoption must therefore be in question, and the Economist Intelligence Unit expects the timetable for entry into the EU's exchange-rate mechanism (ERM2) and for euro adoption to slip beyond 2012-14.
We expect a contraction in real GDP of 2.8% in 2009, following growth of 7.1% in 2008, as domestic demand slumps because of policy tightening and the global economic crisis. The economy will recover in 2010, and growth will accelerate in 2011-13.
We expect the current-account deficit to narrow sharply in 2009-10 in US dollar terms and as a percentage of GDP. Coverage of the deficit by foreign direct investment (FDI) will decline from recent high levels, but access to external financing has been eased as a result of the IMF-led package of financial support.

Key indicators	2008	2009	2010	2011	2012	2013
Real GDP growth (%)	7.1	-2.8	1.8	4.3	5.2	5.2
Consumer price inflation (av; %)	7.8	5.4	4.2	3.5	3.1	2.8
General government budget balance (% of GDP)	-4.8	-4.6	-3.1	-2.7	-2.2	-2
Current-account balance (% of GDP)	-12.4	-9.3	-8.7	-8.5	-7.9	-7.5
Commercial bank lending rate (end-period; %)	17	13	10.8	8.5	7.5	6.5
Exchange rate Lei:US$ (av)	2.52	3.3	3.22	3.17	3.1	3.06
Exchange rate Lei:€(av)	3.68	4.36	4.46	4.49	4.49	4.5

Source: www.economist.com

Dawn of the Romanian Empire

Romania’s richest man, Dinu Patriciu, is taking advantage of the turmoil among small, London-listed companies to build a pan-European investment empire.

Population's deposits barely see a rise, despite still high interest rates

Owners of Tractorul site ask banks for 100m euros

The first stage of development of the Coresi project on the 120 hectare site of the former Tractorul plant in Brasov will include a shopping complex with a 90,000 square metre lettable area, for which the owners of the project, the Centerra Capital Partn

Is relaxation of lending terms coming?

Bankers have become much more cautious when it comes to granting real estate loans since the beginning of the year, but now have to relax terms in order to find clients for loans.

Cheapest real estate fund: Lewis Charles is now worth less than 2m euros

British investment fund Lewis Charles, which had announced investments of around 200 million euros on the Romanian market, now has a capitalisation of 1.66 million pounds sterling (1.88 million euros), after the shares of the London Stock Exchange-listed

Piraeus asks shareholders to come up with 20m euros

The management of Piraeus Bank Romania proposed an over 20 million-euro capital increase to the shareholders, by capitalising part of last year's profit, as well as by a cash contribution.

Carrefour to open 2-3 hypermarkets in 2009

French hypermarket network Carrefour will reach 25-26 operating stores by the end of this year, in the wake of overall investments put at 60-80 million euros, half the value of expansion projects completed by the company last year.

Sun Plaza close to completion: Cora gets its designated space

French EMCT company, which is developing the Sun Plaza mall in southern Bucharest, is now almost done with the project, turning over the space allotted to the hypermarket in Sun Plaza and setting October 29 as the date to inaugurate the biggest shopping

Mortgage loans resume growth in April, while consumer loans continue to fall

Mortgage loans managed to resume growth in April - if the exchange rate impact is eliminated - after two consecutive months of decline, but bankers remain sceptical and expect fresh positive news before they can put their faith in a market rebound. Howev

Hercesa invests over 500 million Euro in Romania

Interested in responding to the high demand on the residential market, Hercesa Imobiliara, a real estate developer, has set a development plan for Romania that includes investing 500 million Euro for the construction of more than 5,500 apartments in the

Romania real estate market still attractive

Although the cost of construction is up, the yield for offices is down, and the average price per sqm for transactions went up six times in the last five years, the Romanian real estate market is still a top destination in terms of profitability. The ong

Forecast: Romania Outlook for 2009-10

From the Economist Intelligence Unit Source: Country Forecast

Balkan blushes: Romania, Bulgaria, and the EU

BY THE polite standards of Brussels, it was quite tough. On July 23rd the European Commission issued critical reports on Bulgaria’s and Romania’s progress (or lack of it) in fighting corruption and spending European Union money. Yet after intense lobbyin

Mr Too Clean?

FIGHTING corruption in a country that tolerates it is a lonely job, and Daniel Morar may not have his for much longer. Intensely disliked by most of Romania’s politicians and vilified in the media, he reaches the end of his term as head of the Romania’s

The party is nearly over

IT HAS gone on splendidly for years, and the party isn’t quite finished yet. For a decade or more eastern Europe has benefited from exceptional (and mostly unforeseen) good fortune. Economic and political stability, including for ten countries membership

Stopping the rot

JUST another week’s news in eastern Europe: Latvia, after vehement denials, starts talks with the IMF; Bulgaria loses €220m ($286m) in promised payments from the European Union because of its failure to tackle corruption; and the European Bank for Recons

Mortgage loans resume growth in April, while consumer loans continue to fall

Study on the affordability of housing in Cyprus

Using data from the Cyprus Statistical Service and the Nicosia Land Registry for the years 1998-2008, Antonis Loizou & Associates analyzed the drivers behind the increase in real estate prices as well as the affordability of housing by locals.

Heitman Perspective: Central & Eastern Europe and the Financial Crisis

Stock investors now spend less time with companies’ income statements and more time with their balance sheets, looking for ticking debt bombs. In the same way, investors in international real estate must expand their analysis of countries beyond GDP grow

Land around Bucharest remains at 2008 prices, but plots for sale are smaller

The average price of land in the area surrounding Bucharest was of 353.4 RON/square metre in March, similar to that recorded in March 2008, but sellers now put up smaller areas.

Asmita Gardens, suspended for 20m-euro debt

The construction site of the 800-apartment Asmita Gardens residential project in Bucharest, which will consist of seven tower blocks with 16, 20 and 24 floors was suspended indefinitely by Austrian builder Strabag on Tuesday, as a result of Asmita Garden

Apartments 30 minutes away from Bucharest's centre are 20-25% cheaper

The average price of apartments on the outskirts of Bucharest - Drumul Taberei, Berceni, Vitan Mall and Crangasi - has fallen by over 20% this year. More than 20% declines of the year have been recorded in the 13 Septembrie and 1 Mai areas, as well, s

Fly-to-let: the best places to buy an investment property overseas

As fly-to-letters become ever more adventurous, which destinations offer the best prospects? As recently as a decade ago, who would have thought of buying a flat in Tallinn, Sofia or Prague?

Χρηματοδοτήσεις με μέτρο και στα Βαλκάνια

«Κλείνουν τις κάνουλες χρηματοδοτήσεων» και στα Βαλκάνια οι ελληνικές εταιρείες leasing, καθώς λόγω της εν εξελίξει παγκόσμιας οικονομικής κρίσης εφαρμόζουν αυστηρότατους όρους εγκρίσεων για συμβάσεις. Την ίδια τακτική, άλλωστε, εφαρμόζουν εδώ και δύο μή

Σόφια και Βουκουρέστι αναζητούν διέξοδο

Εκτιμήσεις ξένων τραπεζών αναφέρονται σε πιθανούς αναπτυξιακούς ρυθμούς της τάξεως του 2,3% για τη βουλγαρική οικονομία το 2009, ποσοστό συγκριτικώς χαμηλό, αλλά όχι και οικτρό…

Δυναμικό γ΄ τρίμηνο για την Cosmote Ρουμανίας

Επενδύσεις 600 εκατ. ευρώ αναφέρει η Cosmote Ρουμανίας στα τρία χρόνια λειτουργίας που συμπλήρωσε πρόσφατα. Σε ειδική εκδήλωση που πραγματοποιήθηκε στο Βουκουρέστι για τη συμπλήρωση τριών ετών από την επανέναρξη των δραστηριοτήτων της, η διοίκηση της επι

Αισιοδοξία για την ανάπτυξη της ρουμανικής οικονομίας

Αισιόδοξοι για τη συνεχιζόμενη ανάπτυξη της ρουμανικής οικονομίας, η οποία στο πρώτο τρίμηνο κατέγραψε ρυθμό 8%, είναι ο υπουργός Οικονομικών της χώρας και οι συνεργάτες του που επισκέφθηκαν την Αθήνα στο πλαίσιο παρουσιάσεων σε ευρωπαϊκές πρωτεύουσες.

Interest rate increases affect real estate projects

Real estate projects in Romania are the most sensitive when it comes to interest rates increases, particularly the office segment, which relies on the rent flow, according to Rasvan Radu, CEO of UniCredit Tiriac.

New hotels scheduled to open this year

This year will see over 16 new hotels open on the market, most of which belong to chains already established in Romania, such as Ramada, Golden Tulip and Continental.

Interest rate increases affect real estate projects

Niro Investment Group starts new projects in constructions

Niro Investment Group is getting ready to build together with the Chinese partners from Beijing Urban Construction Group (BUCG). Niro signed a long-term cooperation agreement with BUCG, and the new company will build Niro Towers and will assure the desig

Eurobank Properties: σύμβαση 9 ακινήτων

Οριστικοποιήθηκε η απόκτηση εννέα ακινήτων από την Eurobank Properties, συμφωνία που είχε ανακοινωθεί από το προηγούμενο καλοκαίρι, όταν είχε καταβληθεί και σχετική προκαταβολή 2,6 εκατ. ευρώ.

Ελληνικές τράπεζες με... «ξένα» δάνεια

Τα πιστωτικά ιδρύματα θα κάνουν περισσότερες χορηγήσεις, στα Βαλκάνια και την Αν. Ευρώπη, την επόμενη χρονιά.

Πειραιώς: νέα επένδυση real estate στη Ρουμανία

Tην εξαγορά της ρουμανικής εταιρείας ειδικού σκοπού (SPV) Intertrade S.L. έναντι 8 εκατ. ευρώ ολοκλήρωσε πρόσφατα η Trieris Real Estate Management Limited.

Controlling real estate growth

How private and public forces can best manage the chaotic boom in property development became the focus of a high-level seminar in Bucharest organised by The Diplomat - Bucharest, which brought together authorities and business to beat out some ideas.

Market overvalued says First Property

First Property Group, the Aim-listed asset manager, announced a rise in profits that it said justified its move out of the UK into eastern Europe. Financial Times

Romania thrives on European Union investment

Investment in Romanian property reached almost €500m (£349m) in the first half of this year, Jones Lang LaSalle research shows.

Μεγάλη αύξηση των ξένων επενδύσεων στη Ρουμανία

Σημαντική αύξηση παρουσιάζουν οι ξένες επενδύσεις στη Ρουμανία. Περίπου 8.000 επιχειρήσεις με ξένο κεφάλαιο ξεκίνησαν δραστηριότητα το πρώτο εξάμηνο του 2007 στη χώρα.

Norwegians buy 800 new apartments in Bucharest

Romania Ania Invest, a Norwegian investment fund, has acquired around 800 new apartments in five residential projects in Bucharest and around the city since the beginning of the year. The investors hope to achieve a 30-50% growth rate when the apartments

IMF: Real-estate prices will continue to grow in Romania

Foreign capital’s entry rate will not stagnate in Romania, so the real-estate prices in Romania will continue to grow, Juha Kahkonen, senior advisor within IMF’s Europe Department, has stated yesterday in Warsaw.

Οι τιμές πάνε πάνω στη Ρουμανία