fbpx Modifica setari cookieuri


Industrial production decreases for the 8th month in a row. -3.1% in January

According to the data communicated by the NIS, in January 2020, Romania registered a new decrease in monthly industrial production, by -2.4% in gross series… Mai mult

VIDEO / Spring, first Dacia electric model, enters series production as of 2021

Dacia-Renault presented its “show car” Dacia Spring, “which prefigures the first 100% electric model of this brand” and will enter series production in 2021, according… Mai mult

Analysis / 2020 – turning point for economic balance: Political decision will choose whether or not we shall sustainably develop

With current data and based on the legislation already adopted, Romania’s public debt is forecasted to reach 91.2% of GDP, according to the analysis of… Mai mult

Maps of regional fracture in Romania’s gas, electricity and highway infrastructure

The progress in the development of Romanian infrastructure networks of utilities and roads is too slow compared to the needs and our neighbours’ progress, as… Mai mult

OUG 114 erased 24% of the total profit of energy companies in 2019. Solutions that companies approached

The administrative capping of energy prices through OUG 114/2018 contributed to a decrease of approximately 24% of the cumulative net profit of the largest electricity… Mai mult

Ranking of discernment: Spectacular increase in August in the difference between Romania’s other EU countries’ borrowing costs

de Marin Pana , 15.10.2019

The long-term interest rate fell below zero in the Eurozone and dropped to only 0.28% on average at the EU level, half as compared to the previous month and a quarter compared to March 2019.

No less than 13 states of the European Union have recorded negative values ​​at this indicator, which shows the level that costs of financing the public debt can reach in the long term.

Although the yield obtained for loans granted to Romania decreased from almost 5% in April – May 2019 (4.91% and 4.93%) to 4.12% in August, the situation compared to other EU countries has significantly worsened in the last months:

Currently, we have reached more than double interest rates for Greece, Poland or Hungary and triple compared to Italy.


Ranking of long term interest rates for bonds issued by EU countries (August 2019)

  1. Romania
  2. Greece
  3. Poland
  4. Hungary
  5. Italy
  6. The Czech Republic
  7. Croatia
  8. The UK
  9. Cyprus
  10. Bulgaria


These four states, along with us, are the only ones that exceed the 1% threshold, below which the Czech Republic and Croatia, which recently applied for the Eurozone membership, rank. Our neighbour from the south of Danube, Bulgaria, also on its path to the single currency, recorded a value of only 0.35%, almost 12 times lower than us.

For reference, we also mention that Germany (-0.65%), Denmark (-0.58%), Luxembourg (-0.54%) and the Netherlands (-0.5%) recorded the highest negative loan interest rates, followed by Sweden (-0.36%), Finland (-0.35%) and France (-0.34%). Obviously, investors’ perception and the understanding of trends in each country played a decisive role.

In this context, we recall that Romania has by far the highest inflation in the EU, 4.1%, significantly higher than Hungary (3.2%), Poland, the Czech Republic (both with 2.6%) or Bulgaria (2.5%). Greece, which managed to dramatically lower the cost of loans from 4.37% in October 2018 to just 1.98% in August 2019, had an inflation rate of only 0.1%.

Obviously, a better management of the Romanian economy, closer to Poland, Hungary or the Czech Republic (with which we have in common the floating exchange rate regime of the national currency against the euro but we do not have in common the high foreign deficits that we are facing) would have brought a better perception from international investors and consequently lower borrowing costs.

To put it simply, we continue to borrow expensive money from the market (less than a few months ago, but, compared to other countries, under even more onerous conditions) for consumption.

Instead of using the favourable long-term market environment with public policies aimed at leading to more favourable interest rates for useful investment projects at the national level.

The key phrase related to interests we are currently using is “LONG TERM”.

That is, we will have many years to come, even if we manage to restore macroeconomic balances, to continue to pay the bill for the past to levels PREVIOUSLY set, in a “long-term” past.

Mergeți în homepage ›

Publicat la data de 15.10.2019

Lăsați un comentariu


Romania is a net importer of electricity in 2020 as well

Romania imported an amount of electricity of almost 796 GWh in the first month of this year, by more than 36% above what it exported… Mai mult

Shareholders of Galati steel plant promise investments of one billion euros

GFG Alliance has committed to invest one billion euros to upgrade Galati steel plant in order to reduce emissions and increase production. Another EUR 1… Mai mult

Transport Ministry announces it has sent to Brussels the financing request for Sibiu - Pitesti highway

The Transport Ministry, as the Intermediate Body in Transport, approved the financing request for the project "Construction of Sibiu - Pitesti highway", Sections 1, 4… Mai mult

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult

Romania loses competition for a seat at UN Security Council. MAE Excuse: Campaign started too late

Romania lost to Estonia in the final vote to get the non-permanent member position within the UN Security Council for the period 2020-2021. On Friday,… Mai mult

Business internationalization / eMAG makes a step to entry five new international markets and targets a business of EUR 2 billion

eMAG hopes to get the opinion of the Hungarian Competition Council over the next two months for the acquisition of Extreme Digital, the market leader… Mai mult