about us | newsletter | contact | archive | members area
VALERIE PLAINEMAISON, EFIEES
We are preparing some proposals for the revision of the directives on energy efficiency»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

IMF and EC officially conclude after visit in Bucharest

Official representatives of the International Monetary Fund and the European Commission visited Bucharest during January 21-February 4 to conduct discussions on the combined first and second reviews under the IMF Stand-By Agreement (SBA) and on the status of Romania’s precautionary balance of payments program with the European Union.

2014-02-11 13:54:28

Staff level agreement has been reached. The program remains broadly on track. Most end-December performance criteria were met and structural benchmarks have either been met or are nearing completion, are part of conclusions stated in the final visit report and quoted by newswire ActMedia.

According to the report, in 2013, real GDP growth picked up to an estimated 2.8 percent, on the back of continued strong exports, while domestic demand remained subdued. Economic activity was driven mostly by robust industrial output and an abundant harvest. In 2014, real GDP is projected to advance by 2.2 percent with domestic demand firming on the basis of a supportive policy framework, better absorption of EU funds, and an improvement in confidence.

Historically low inflation is projected to decline further in the first half of 2014 before returning to the upper part of the central bank's target band in the second half of 2014. The current account deficit is expected to remain between 1 and 1.5 percent of GDP, contributing to Romania's strong external position, which has helped the country weather recent pressures on emerging markets.

Also, the closing report states that The authorities approved a budget consistent with a deficit target of 2.2 percent of GDP for 2014. A subsequent delay in the implementation of excise taxes on fuel products will be compensated with freezes on the expenditure side. The authorities intend to continue fiscal adjustment in 2015, in order to reach Romanian medium-term budgetary objective of a structural deficit of 1 percent of GDP, while also accommodating expected further increases in co-financing of projects supported by the EU.

Monetary policy continues to be accommodative, which has translated into a considerable reduction in lending rates. Combined with the government loan guarantee programs, this should enable lending activity in lei to start a modest recovery. Notwithstanding pressures on asset quality, the banking sector continues to maintain reassuring capital, liquidity and provisioning buffers.

Progress on reducing state-owned enterprise arrears has stalled. However, corrective actions are being launched, including budgetary transfers and restructuring measures. An action plan to sustainably lower arrears over the medium term will be defined. Building on the success of the Romgaz IPO, progress toward completion of IPOs of three other state-owned enterprises remains broadly on schedule. Regulatory reforms in energy and transport sectors are set to continue, as well as deregulation of the gas and electricity prices, in line with the earlier agreed roadmaps.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  1359 Views
Daily Info
Romanian Energy Awards 2017 - performance and exceptional accomplishments

The Diplomat - Bucharest celebrated the winners of 21 assigned categories for both conventional and renewable energy, within a prestigious event continuing the annual traditio...

New law on ports administration would be very damaging for Romanian state budget, Fondul Proprietatea says

Fondul Proprietatea is concerned by the renewed steps to approve the draft law amending the Government Ordinance on ports administration, which was re-examined and approved th...

Vienna Insurance Group posts profit of 110 million Euro in Q1

Vienna Insurance Group reported a profit before taxes of around 110 million Euro in the first quarter of 2017, according to a press release.

Three Romanian architecture offices merge into CUMULUS

PZP, SYAA and ARXTUDIO offices have merged into CUMULUS, in one of the rare transaction on the Romanian architecture sector. The new company has a combined turnover of over on...

Eberspaecher forecasts slight increase in revenue for 2017

The German automotive supplier Eberspaecher forecasts sustained positive income development with a slight increase in revenue for 2017, a press release shows.

 
 
   
advertising

advertising

advertising

More on News
Iohannis: I explained to EU leaders multi-speed Europe is not a good solution, could end in split-up

President Klaus Iohannis, speaking after the European Council's meeting, said that he explained to EU leaders that a multi-speed Europe is not a good solution and that in e...

1 Comment

BRUA pipeline to operate in 2020 when Exxon, Petrom will extract Black Sea gas

The works at the BRUA (Bulgaria - Romania - Hungary - Austria) pipeline will start at the end of 2017, and the gas pipeline will become operational in 2020, when ExxonMobil...

Ninety-seven per cent of household waste ends up in landfills, says ARBIO

As much as 97 per cent of Romania's household waste ends up in landfills, and Romania could be fined starting in 2020 about 500,000 Euro per day if it fails to bring the nu...

Net investment in national economy, down 3.3 per cent in 2016

Net investment carried out last year in Romania's national economy stood at 70.281 billion RON (15.6 billion Euro, declining 3.3 per cent from 2015, according to data relea...

Romania has significant potential in agriculture, but low productivity, says PwC Romania

Romania is one of the European countries with the highest potential in agriculture with the sixth biggest agricultural use area in the EU, but it has a low productivity due...

Commercial property investments in Romania exceeded 850 million Euro last year, says DTZ

In 2016, the total volume invested in commercial property in Romania exceeded 850 million Euro, a DTZ Echinox report shows. Bucharest attracted 660 million Euro, which repr...

PM Grindeanu: We must back European project strengthening, not multi-speed Europe

Romania's consistent stance - whether expressed by the country's Presidency, government or Parliament - on the future of the EU in the Brexit context is to support the stre...