Analysis
October 12, 2014 17:05
After three consecutive years of financial loss, the Romanian banking system returned to profit in 2013 leaving room for some optimism with respect to its profitability in 2014. Lower provision costs amid the slower growth rate of non-performing loans (NPLs), corroborated by a drop in operating expenses subject to staff adjustments and territorial network resizing had a positive effect on the domestic banking sector. Thus, the net aggregate profit of the 40 banks and financial institutions in Romania amounted to lei 48.6 million, following a major loss of lei 2.3 billion in the previous year, shows the annual report released by the National Bank of Romania....more »
October 12, 2014 17:02
Developments in Romania’s energy industry generally accounted for developments in the green energy sector in recent years, a business sector that was like a mirage in a desert that has not got over the nightmare of the economic crisis. But since every good thing comes to an end, the El Dorado the green energy turned into proved to have been only gold plated and rust started to emerge starting last summer. Romania had one of the most generous and profitable support-schemes for renewable energy generation, acting as a magnet for investors seeking easy earnings, who saw in Romania an opportunity for rapid gain....more »
October 12, 2014 17:00
Last years’ Cinderella, the real estate sector, changed the shabby clothes in 2013 and promises to turn into a princess courted by investors. It will not be as charming and attractive as in the period of economic boom when it was rather a chimera, but instead, it will be real and thus, speculative investment will no longer arise. The unexpected GDP growth last year has favorably influenced a sector which was strongly troubled by the recession, and reawakened investors’ appetite for the Romanian market which has been left aside in the post-crisis period....more »
October 12, 2014 16:58
In a global market hitting $1.7 trillion in the first half of 2014, the highest value in the post-crisis period, Romania’s M&A market generates increasing interest reflected in some important deals closed since the beginning of the year. Yet, further major developments are little likely to happen in the coming months, especially since 2014 is an election year. Although there is no direct influence on the business environment, a state of waiting is perceived in the market, investors being prudent when it comes to M&A transactions....more »
September 24, 2013 16:17
Higher values on the M&A market in 2012/2013 should be regarded with moderate optimism, as the investors’ appetite for Romania continues to be low, analysts say. Whether the recent evolutions on the M&A market can be more than just smoke and mirrors depends on many factors, among them the existence of interesting projects....more »
September 24, 2013 16:05
When people talk about Romania’s strong points, its potential is often mentioned: human, geographical or economic. However, getting out of the realm of possibility and into actuality is still the main challenge. To quote the British Prime Minister Winston Churchill, continuous effort – not strength or intelligence – is the key to unlocking our potential...more »
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