Radio România Internațional

Tag: banking

  • The impact of AI on banking       

    The impact of AI on banking       

     

    Increasingly present in our lives, technology enriches and transforms various sectors and industries. The banking system is no exception, the use of artificial intelligence (AI) being vital to maintain a competitive level and offer a better experience to customers, according to specialists in the field. Streamlining administrative processes, personalizing banking services, preventing fraud and improving customer experience are just some of the areas where the introduction of artificial intelligence can bring significant advantages. However, there are also risks, mainly related to data protection and shortage of jobs.

     

    How can artificial intelligence contribute to protecting and securing financial resources and sensitive data? First, by detecting and preventing cyber-attacks in a faster and more accurate way, which is one of the key features of banking firewalls using AI. Then, artificial intelligence can quickly assess and analyze a large volume of data in real time, enabling the effective identification of threats and the implementation of appropriate security measures. AI algorithms can also be used to automate repetitive and routine tasks, such as verifying documents and their authenticity or opening bank accounts, for example.

     

    AI technology can be used to analyze customer data and to provide personalized solutions regarding account management, financial planning or investments. Experts say that the use of artificial intelligence in the banking system can also play a crucial role in fraud detection and prevention, as machine learning algorithms can be trained to identify patterns and anomalies in transactions, alerting banks over possible fraud.

     

    From the perspective of a central bank, artificial intelligence is a promising tool for balancing inflation, according to Cristian Popa, a member of the Board of Directors of the National Bank of Romania (BNR), present at a conference on this topic. He explained that, similar to the influence of globalization, which played down inflation in the past decades, artificial intelligence, by streamlining and optimizing economic processes, offers good prospects for stabilizing prices, in a context marked by significant challenges.

     

    Cristian Popa: “The process of taking monetary policy decisions is all the more complex during periods defined by huge structural changes, such as the ones under way. I am talking about globalization, which is shrinking, regulation, which is becoming more intense, protectionism, which is growing, the peace dividend, which disappears or about directing part of the expenses to the military sector, to the detriment of education and health. The population, that ages simultaneously with the decrease in the birth rate, the energy dividend, which disappears, the problem of fiscal deficits, which is growing and the transition to green economy, which also involves new costs, are some other examples. All these structural changes seem to indicate that the pressure of inflation will be present for a long time. But there is a change that can work in the opposite direction, as artificial intelligence can limit the impact of the mentioned structural changes, if it is large enough, stimulating sustainable economic growth through higher labor productivity and opening new paths to innovation and progress.”

     

    Cristian Popa believes, however, that the pace of these changes is still uncertain and that the widespread impact of the implementation of AI technology can be felt only in the long term, as it requires a period of gradual adjustment and more intense collaboration between people and technology. What artificial intelligence does in the long run is enhance certain abilities that we can capitalize on in new professional opportunities, Cristian Popa explained. But, he added, there are risks associated with data protection and its correct interpretation by artificial intelligence. That is why, the BNR will support innovation, but will keep an eye on macro-stability and is expected to have an approach that takes into account the level of risk in terms of artificial intelligence. That is, a permissive approach towards non-critical banking activities, but a firm one about core activities, current realities causing the central bank to view, for example, with some reluctance the transformation of the digital assistant into an expert in banking risk management or in decision-making as regards granting loans, Cristian Popa also said.

     

    Risks associated with artificial intelligence include the loss of jobs, as certain processes are automated, as well as data privacy risks, given that artificial intelligence requires access to customers’ personal data. All in all, experts say, in 2030 it is expected that the use of artificial intelligence in the Romanian banking sector and many other sectors for that matter, to be widespread and fully integrated in most banking processes and services. (EE/AMP)

     

     

  • April 1, 2024 UPDATE

    April 1, 2024 UPDATE

    Deepfake – The National Cyber Security Directorate Romania published a “Guide to Deepfakes”, aimed at protecting and educating the general public on cyber security risks. The Guideline provides detailed information on deepfake production and identification. The authors are confident that by understanding these concepts, users are more aware of the related risks and may take adequate protection measures. Deepfake is a form of digital manipulation using advanced AI techniques to create false images or audio-video materials. According to the institution, this may have a severe impact on society, as it erodes public confidence in online information.

     

    Banking – The consumer credit reference index (IRCC) dropped to 5.90% per year, from 5.97% 3 months ago, the National Bank announced. This is the first significant decrease of the index in the past 12 months, and will lead to smaller interest rates as of this month. In June the IRCC is expected to decrease further, to 5.84%. The downward trend will help bring down interest rates for mortgage loans for nearly half a million Romanians. Meanwhile, the 3-month ROBOR index which influences the costs of variable-rate loans in the national currency has reached 6.06% per year, as opposed to 6.05%. IRCC is the index used for setting the interest rates for variable-rate loans in the national currency since May 2019, when it stood at 2.36%. It was designed by the government as a solution to offset the effects of the ROBOR index, which had been rising from one month to the next at the end of 2018.

     

    Parliament – The Parliament of Romania convenes on Tuesday in a joint meeting to mark 20 years since the country joined the North Atlantic Alliance and 75 years since the establishment of NATO. Parliament will adopt a declaration on this occasion. Also this week, the Chamber of Deputies is scheduled to give its final vote on a government bill introducing penalties for breaches of the EU regulation on the use of fluorinated greenhouse gases in appliances such as refrigerators or AC systems. The penalties may reach EUR 20,000 in fines, and 6-month to 3-year prison sentences. Deputies in the specialist committees are also to discuss as of this week new draft regulations on the compulsory motor insurance, stipulating fines 15 times higher than in the past for uninsured drivers and a ceiling of EUR 400 on self-paid car repairs. Also this week, the Senate is to discuss the merger of local elections with the European Parliament elections, scheduled for June 9th.

     

    Protests – The Romanian Post Workers’ Union went on an all-out strike on Monday, but the postal offices’ activity is taking place normally in most counties of Romania, as the management of the institution claims. The protesters demand an increase in salaries by a net amount of 400 lei (approx. 80 euros) and an increase in the loyalty bonus. They draw attention to the fact that the pay of 90% of the employees will be, as of this summer, at the level of the minimum wage. According to the authorities, it will increase to 3,700 lei (approx. 740 euros) from July 1. The company management announced that the demands of the employees are justified, but that there have already been significant salary increases. The Romanian Post is a national operator and is owned by the state.

     

    Drills – Joint exercises of the Moldovan, Romanian and American military are taking place in the Republic of Moldova until April 19. The Moldovan Defense Ministry announced that they would train, will exchange experience and increase the level of interoperability. The drills will take place in the training centers of the National Army of the Republic of Moldova.

     

    Visit – The special representative of the United States of America for the economic recovery of Ukraine, Penny Pritzker, arrives in Bucharest in two days. She will visit the UN Refugee Agency Center at the Romexpo Exhibition Compound, together with Romanian officials and the US Ambassador to Bucharest, Kathleen Kavalec. She will talk about the life of refugees in Romania and their role in the reconstruction of Ukraine. At the same time, Penny Pritzker will meet with members of the Romanian Government and private sector leaders to discuss regional cooperation, including emergency energy assistance for Ukraine and the long-term benefits of infrastructure investments. (AMP, LS)

  • April 1, 2024

    April 1, 2024

     

    STRIKE The Romanian Postal Workers Union went on all-out strike as of today, but the management promises there will be no delays in public pension payments and other services. The protesters demand pay raises of EUR 80 after tax and increased loyalty bonuses, and argue that as of this summer 90% of the staff will be gaining minimum wages. According to the authorities, national minimum wages will be around EUR 740 as of July 1. The post company claims on the other hand that only 20% of the workers have given written consent for the strike initiated by a union which has been rejecting all the offers made by the management since the start of negotiations late last year. The Romanian Post Corporation is the national postal service and is owned by the Romanian state.

     

    BANKING The consumer credit reference index (IRCC) dropped to 5.90% per annum, from 5.97% 3 months ago, the National Bak announced. This is the first significant decrease of the index in the past 12 months, and will lead to smaller interest rates as of this month. In June the IRCC is expected to decrease further, to 5.84%. The downward trend will help bring down interest rates for mortgage loans for nearly half a million Romanians. Meanwhile, the 3-month ROBOR index which influences the costs of variable-rate loans in the national currency has reached 6.06% per annum, as opposed to 6.05%. IRCC is the index used for setting the interest rates for variable-rate loans in the national currency since May 2019, when it stood at 2.36%. It was designed by the government as a solution to offset the effects of the ROBOR index, which had been rising from one month to the next at the end of 2018.

     

    PARLIAMENT The Parliament of Romania convenes on Tuesday in a joint meeting to mark 20 years since the country joined the North Atlantic Alliance and 75 years since the establishment of NATO. Parliament will adopt a declaration on this occasion. Also this week, the Chamber of Deputies is scheduled to give its final vote on a government bill introducing penalties for breaches of the EU regulation on the use of fluorinated greenhouse gases in appliances such as refrigerators or AC systems. The penalties may reach EUR 20,000 in fines, and 6-month to 3-year prison sentences. Deputies in the specialist committees are also to discuss as of this week new draft regulations on the compulsory motor insurance, stipulating fines 15 times higher than in the past for uninsured drivers and a ceiling of EUR 400 on self-paid car repairs. Also this week, the Senate is to discuss the merger of local elections with the European Parliament elections, scheduled for June 9th.

     

    DEEPFAKE The Romanian Cyber Security Directorate published a “Guideline for Identifying Deepfake”, aimed at protecting and educating the general public on cyber security risks. The Guideline provides detailed information on deepfake production and identification. The authors are confident that by understanding these concepts, users are more aware of the related risks and may take adequate protection measures. Deepfake is a form of digital manipulation using advanced AI techniques to create false images or audio-video materials. According to the institution, this may have a severe impact on society, as it erodes public confidence in online information.

     

    EASTER Roman-Catholic and Protestant Christians around the world, including around 1.3 million believers in mostly Orthodox Romania, celebrate Easter Monday. This year, Easter for Roman Catholics and Protestants is 5 weeks before the corresponding Orthodox, Greek Catholic and Neo-Protestant celebration on May 5. In his peace message from Vatican’s St. Peter Basilica, Pope Francis urged people not to “yield to the logic of weapons,” for war is always an absurdity and a defeat. As new negotiations are scheduled for a ceasefire between Israel and Hamas, Pope Francis appealed once again for the prompt release of the Israeli hostages and for an immediate cease-fire in the Strip.

  • Economic measures in times of crisis

    Economic measures in times of crisis

    As of Wednesday, in Romania employers may apply for governmental funds to pay their employees in idle time. The applications may be submitted online, to the county employment agencies. The same type of aid is available not only for companies with employees, but also to the self-employed. In order to benefit from these funds, employers must submit to county employment agencies an application, a sworn statement and a list of the employees on idle time.



    The Labour Minister, Violeta Alexandru, promised that all applications will be processed as quickly as possible. Idle time benefits are capped at around 800 euros per month, before tax and healthcare and pension contributions. According to the latest data, over 500,000 employees have already seen their employment contracts temporarily suspended over the coronavirus crisis. Tax analysts warn however that the idle time benefits, accounting for maximum 75% of the gross salary, will be subject to the same tax rates as the regular salaries.



    Meanwhile, the governor of the National Bank of Romania, Mugur Isărescu, says that the tensions created by the COVID-19 crisis in the monetary, financial and banking sector have already reached the peak and will subside. Isărescu explained in a news release that after successive days with substantial cash withdrawals, the situation is now stable.



    According to the central bank governor, there were isolated, temporary bottlenecks shortly after the state of emergency was announced. Between March 11 and 20, banks withdrew some 900 million euros in cash from the central bank, in order to cover the demand for cash from their clients. This was double the figure reported during the winter holidays in December 2019.



    Over the past few days, however, the National Bank says, withdrawals fell substantially, and at present banks are able to cover their ATM and payment needs from their own resources. The cash reserves of the National Bank also stayed within prudential limits and increased slightly in the last several days.



    According to the central bank, there are no problems in covering the demand for cash in local currency. The bank recommends nonetheless that individuals and companies try and use non-cash payment instruments as much as possible these days.



    After the National Bank announced its monetary policy decisions, interest rates were cut considerably, and the exchange rate for the national currency stabilized within a 1% range, with a slight upward trend reported lately, the central banks news release also reads.


    (translated by: Ana-Maria Popescu)

  • Disputes over banking interests

    Disputes over banking interests

    Members of the National Bank board, including Governor Mugur
    Isarescu, were heard by the joint Senate committees for budget-finances and the
    economy. The talks took place against the background of recent criticism
    concerning the central bank policies. Senator Daniel Zamfir, chair of the
    economic committee and a member of the Alliance of Liberals and Democrats (ALDE),
    a junior partner in the ruling coalition, was particularly vocal in accusing
    the National Bank of interfering with the calculation of ROBOR.




    Governor Isarescu denied any manipulation of interest rates and of
    the exchange rate for the national currency, and assured the committee that the
    ROBOR index does not deviate from the actual market level. He gave details on
    inter-bank transactions, explaining that some banks have cash surpluses,
    whereas others have deficits. Mugur Isarescu also said that at present the
    ROBOR level can only fluctuate within the 1.5 to 3.5% range, which is the only
    way the National Bank can attract deposits from and give loans to commercial
    banks by means of state bonds. Mugur Isarescu:




    This is exclusively the inter-banking market that we are talking
    about. This is where banks compete with each other, and in this market banks
    may use interest rates that vary within certain limits, but variations go down
    to one-hundredth of a point. So I can guarantee you that there is no
    manipulation, no deviation of ROBOR from the real market value. The market
    works very well. And proof that it does is the stability of the exchange rate
    and of the interest rates.




    The central bank chief also explained that the ROBOR index stayed at
    a lower level as long as the inflation rate was low, and that the National Bank
    does not play with the monetary policy. Instead, it is a case of interest
    rates going up at the same speed as inflation. Asked whether there is any way
    to calculate ROBOR so that its variation would be smaller, the National Bank
    official said that a task force made up of representatives of the Finance
    Ministry and of the central bank is looking for such options. But, he added, a
    more favourable solution than the current one is hard to find.




    During the talks, Senator Daniel Zamfir also discussed the business
    model of banks in Romania. In his opinion, Romania is the poorest EU member
    country at present, and the National Bank Governor should have worked together
    with Parliament, banks and the Government to come up with solutions for the
    development of the country. Daniel Zamfir:




    The Romanian banking sector has the lowest financial intermediation
    level in the EU, more precisely four times lower. Meanwhile, banks’ profits are
    double the European average.


    National Bank officials explained that low banking intermediation is
    a serious problem, but one which can only be solved by means of structural
    reform.

  • February 12, 2019 UPDATE

    February 12, 2019 UPDATE

    STATE BUDGET The President of Romania, Klaus Iohannis, said on Tuesday that the 2019 state budget bill drafted by the left-of-centre Power is “rushed and based on unrealistic economic estimates. The head of state warned that this is not the budget of the Social Democratic Party, but of Romania, and that stability and prosperity in the years to come depend on this, reads a news release issued by the Presidency. Iohannis is particularly critical of the funding cuts affecting national security institutions, which he sees as an irresponsible decision. Similar comments had been made previously by the right-wing Opposition as well. In Parliament, debates on the budget bill continued in the specialised committees, with the final vote scheduled for Friday. The budget is based on an estimated economic growth rate of 5.5%, a budget deficit of 2.5% of GDP and a GDP of over 200 billion euros.




    BANKING The Governor of the National Bank of Romania, Mugur Isarescu, Tuesday assured Parliament that there is no deviation of the ROBOR index from the true market level. In a hearing at the Senates committees on budget-finances and the economy, Isarescu explained that the current level of ROBOR, the index used in calculating floating interest rates for national currency loans, can only fluctuate within the 1.5% to 3.5% range, because this is the only way the central bank can attract deposits from and provide loans to commercial banks. On the other hand, the chair of the Senates economic committee Daniel Zamfir (ALDE, a junior party in the ruling coalition), said the Romanian banking sector had the lowest financial intermediation rate in the EU, and profit rates twice the EU average. The dispute between Zamfir and Isarescu deepened after in January the local currency, the leu, dropped to all-time lows against the euro for several consecutive days. During the same period, ROBOR came close to 3%, pushing up the interests for national currency loans.




    EU The EU member states committed on Tuesday to consolidate the legal framework for the supervision of financial institutions, in order to find the best means to fight money laundering. The Romanian Presidency of the Council of the European Union was invited to initiate as soon as possible negotiations with the European Parliament on the relevant legislative package. According to the Radio Romania correspondent in Brussels, the Romanian Finance Minister Eugen Teodorovici, who chaired the ECOFIN meeting, emphasised that the rules for combating money laundering will be fully implemented in all EU member countries.




    DEFENCE The Romanian defence minister Gabriel Leş is taking part on Wednesday and Thursday in a meeting of NATO defence ministers in Brussels. According to a news release, topics of major interest are on the agenda, concerning the implementation of the decisions made in the latest NATO summit last year. On the sidelines of the meeting, the Romanian official will also have bilateral talks with his counterparts from the UK, Canada, and other NATO member and partner countries, including Georgia and Ukraine.




    FRAUD Bucharests “Carol Davila Medical and Pharmacy University announced that a woman working as a volunteer physician in a public hospital in Bucharest does not appear in its records as a graduate of Bachelors and Masters degrees. The Healthcare Minister, Sorina Pintea, says the documents presented by the individual, who had been practicing gynaecology for 10 years, are forged, and that a criminal investigation will be initiated in this case. Prompted by a media investigation, the new case follows the one involving an Italian citizen who worked unlawfully as a plastic surgeon in private clinics in Romania. A secondary school graduate working as a parking valet in Italy, he already had a 1.5-years suspended sentence in his own country, for claiming to be a physician for a long time.




    DIPLOMACY The US Secretary of State, Mike Pompeo, Tuesday travelled to Slovakia as part of his on-going European tour. In Bratislava, he reiterated the statements made previously in Hungary, concerning the importance of supporting Ukraines sovereignty and integrity, and said that Western Allies must not allow Russia to create division between NATO member states. Moscow is not the only power intent on eroding freedom in the region, Pompeo also warned, hinting at China. The US officials tour also includes Warsaw and Brussels, where he will have talks with the EU diplomacy chief Federica Mogherini.




    TENNIS Romanias womens tennis team went up 3 places and is currently ranked 5th with 8,912.5 points, in the Fed Cup standings released by the International Tennis Federation (ITF). The increase is owing to the away win against trophy holder the Czech Republic on Sunday. Romanias next opponent in the Fed Cup semis is France, ranking 4th with 12,995 points, after defeating Belgium (3-1), in Liege. Romania outplayed the Czech Republic, 3-2, thanks to Simona Haleps 2 wins and to Irina Begu and Monica Niculescus victory in the doubles. Romania will take on France away from home on April 20th and 21st, in its first presence in the Fed Cup semi-finals since 1973.



    (translated by: Ana-Maria Popescu)

  • December 20, 2018

    December 20, 2018

    PARLIAMENT The Parliament of Romania is today debating and voting on the second no-confidence motion against the Government formed by the Social Democratic Party and the Alliance of Liberals and Democrats, and headed by Viorica Dăncila. According to the Opposition, the current Cabinet is a threat to Romanias national interests, to its economic and political stability. The authors of the motion criticise the laws on the judiciary and claim the Prime Minister failed to comply with the governing programme undertaken at the start of her term. In reply, the PM claimed that the alternative the Opposition offers to citizens is to suspend income increases and even to slash salaries and pensions. Viorica Dancila also defended the justice laws, emphasising that they were endorsed by Parliament, rather than by an emergency decree as it was the case with the Ciolos Cabinet. Initiated by the National Liberal Party, the Save Romania Union, the Peoples Movement Party and unaffiliated MPs, the document was signed by 163 MPs, but needs 233 votes in order to pass. Yesterday the Democratic Union of Ethnic Hungarians in Romania announced that its MPs would attend the meeting, but would abstain from voting.



    STOCK EXCHANGE The Association of Capital Market Professionals says the prospective endorsement of a recent government decree on fiscal and budgetary measures is the most brutal and irrational attack against the Romanian capital market since its re-establishment in 1995. The Bucharest Stock Exchange opened on a slight increase today, but plunged back down, after experiencing its worst day so far on Wednesday. Substantial losses were reported by banks and energy and utilities companies, after on Tuesday the Finance Minister Eugen Teodorovici announced that by the end of the year a government decree would be passed introducing certain fiscal and budgetary measures. These include a so-called “tax on greed charged on banking revenues, and a package concerning energy companies, such as a 3% of turnover contribution, a cap on natural gas prices and electricity price control. The business community in Romania warned against the negative effects of the new taxes announced by the Government for 2019. President Klaus Iohannis urged the Cabinet to reconsider the decree, to negotiate it with employers and trade unions and to endorse a more sustainable version after thorough analysis and review.



    EU The President of Romania, Klaus Iohannis, receives in Bucharest on Friday the Chancellor of Austria Sebastian Kurz, whose country currently holds the rotating presidency of the EU Council. Romania will symbolically take over the presidency of the EU Council, which it will hold as of January 1. The 2 officials will discuss the priorities on the European agenda, such as the future of the Union, the EU budget after 2020, Brexit, and the elections for the European Parliament. On Wednesday in a meeting with the EU ambassadors to Bucharest, President Klaus Iohannis said Romanias goal during its presidency of the EU Council is to begin as soon as possible the negotiations on the future relations between the Union and Britain, if the withdrawal agreement is ratified by London and approved by the European Parliament. Iohannis also said that Romania supports a stronger European Union, which is closer to its citizens and able to guarantee their security and prosperity. He also emphasised the importance of the informal meeting of European leaders in Sibiu on May 9, 2019, when the EU strategic agenda for 2019-2024 will be discussed.



    JUDICIARY Romanias supreme court suspended the serving of prison sentences received by several high-level officials under corruption charges. Among them are the former chief of the anti-terrorism and anti-mafia directorate Alina Bica, who requested asylum in Costa Rica, the former head of the tax authority, Serban Pop, and former Social Democratic ministers and MPs Dan Şova and Constantin Niţă. They have been released, until final rulings are passed on their appeals. The argument put forth for the suspension of their sentences was that the membership of the 5-judge panels passing the rulings had not been correct. The supreme court held drawing of lots sessions for the 5-judge panels 3 times this year, when the Law on the organisation of courts was modified, further to a Constitutional Court decision, at the request of the Government and following an objection by the Social Democratic Party president Liviu Dragnea, who is tried for corruption at the Bucharest Court of Appeals.



    COMMEMORATION Sirens sounded for 3 minutes in Timisoara today, in memory of the day of December 20, 1989, when Timisoara was proclaimed the first city free from communism in Romania. The largest plants went on strike back then, and workers gathered in the city centre, alongside tens of thousands of other locals. The Army withdrew from streets, the protesters who had been arrested were released, and the peoples demands were read out from the famous Opera House balcony. Also on December 20, the first revolutionary committee, called The Romanian Democratic Front, was set up. Members of the families of the Timisoara victims are traveling to Bucharest today to commemorate one of the most important events in modern Romanian history. They will arrive at the place where the bodies of 44 Timisoara heroes, shot dead on December 17, were cremated. The uprising that started in Timisoara spread on December 21 to Bucharest and other Romanian cities. Over 1,000 people died and some 3,000 others were wounded in the shootings in Romania, the only Eastern Bloc country where the communist regime was toppled violently and where the communist leaders were executed.



    FOOTBALL Romanias national football team will end the year on the 24th position in the ranking that FIFA made public on Thursday. Romania started the year on the 40th place. This years 24th place is the best ranking Romanias football team has held since 2016. The teams future opponents in the EURO 2020 qualifiers are Spain, in 9th place, Sweden – 14, Norway – 46, Faeroe – 98, and Malta – 182.



    (translated by: Ana-Maria Popescu)

  • June 14, 2018

    June 14, 2018

    VISIT- Romanian Prime Minister Viorica Dancila today begins an official three-day visit to Lithuania and Estonia. She says the political dialogue with the representatives of these two EU member states will focus on the reconfiguration of close bilateral relations, based on a similar journey and common interests, related to European issues and the security of the eastern flank. A major objective is the European agenda and the preparation of Romania’s rotating presidency of the European Council. In the Lithuanian capital Vilnius, prime minister Dancila will have talks with her counterpart Saulius Skvernelis and the speaker of Parliament Viktoras Pranckietis. As for her trip to Estonia, it’s the first by a Romanian prime minister after the re-establishment of diplomatic ties with this Baltic state in 1991.



    INTELLIGENCE – Romania’s President Klaus Iohannis has proposed the Social Democratic deputy Petru-Gabriel Vlase for the office of Director of the Foreign Intelligence Service, according to a communiqué issued today by the presidential administration. Petru-Gabriel Valse is vice-president of the Chamber of Deputies, member of the defence, public order, and national security committee and member of the Joint Special Parliamentary Committee in charge with security legislation review. He is a graduate of higher education institutions in the field of national security and defence, and he has a PhD degree in military science and intelligence. Vlase would replace Mihai Razvan Ungureanu, who resigned in September 2016.



    BANKING – The top management of the National Bank of Romania submits today a new report on financial stability. It comes as the annual rate of inflation in May went above 5.4%, the highest in the last five years, with an exchange rate for the national currency around 4.66 lei per euro, rising deficits and rising public debt. The report analyzes the risks to financial stability and their gravity, as well as the domestic and international economic and financial context, the infrastructure and the regulatory framework. The previous document, issued late last year, revealed that there was no systemic financial risk, but that the plunging confidence of investors in emerging states was deemed a high risk, while rising macroeconomic tensions, personal debt were considered moderate risks.



    MOSCOW — The 21st edition of the World Football Championship kicks off in Russia today. It is the first edition of the championship hosted by a former communist bloc country. Proving their mettle in the final tournament are 32 national teams, while 11 cities across Russia will make the venues for the scheduled fixtures. The opening game will see Russia taking on Saudi Arabia. According to the correspondent of Radio Romania’s News and Current Affairs Channel in Moscow, Russia has invested tens of billions of dollars in the championship’s infrastructure, as well as a significant amount of political capital, hoping the event would bolster Russia’s image around the world. We recall Romania’s national team has failed to make it to the current edition of the World Cup. The World Championship held in France in 1998 was the last edition the national squad took part in.



    HANDBALL — Romanian national men’s handball team’s head-coach, Spaniard Xavier Pascual Fuertes, has amiably terminated his collaboration wit the Romanian handball federation on Wednesday, in the wake of the national team’s playoff fixture against Macedonia, counting towards the qualification for the 2019 edition of the World Championship. The Spanish coach stated he had taken the decision some time ago. We recall Xavier Pascual Fuertes signed a four-year contract with the Romanian Handball Federation, with the stated aim to have the national team qualify for the 2020 edition of the Olympic Games. We recall Romania has failed to make it to the 2019 edition of the World Championships although on Wednesday in Cluj, Romania defeated Macedonia, 26-25. However, our national squad went eight goals down from Macedonia in the first game, so on aggregate they were eliminated form the competition.


  • June 14, 2018

    June 14, 2018

    VISIT- Romanian Prime Minister Viorica Dancila today begins an official three-day visit to Lithuania and Estonia. She says the political dialogue with the representatives of these two EU member states will focus on the reconfiguration of close bilateral relations, based on a similar journey and common interests, related to European issues and the security of the eastern flank. A major objective is the European agenda and the preparation of Romania’s rotating presidency of the European Council. In the Lithuanian capital Vilnius, prime minister Dancila will have talks with her counterpart Saulius Skvernelis and the speaker of Parliament Viktoras Pranckietis. As for her trip to Estonia, it’s the first by a Romanian prime minister after the re-establishment of diplomatic ties with this Baltic state in 1991.



    INTELLIGENCE – Romania’s President Klaus Iohannis has proposed the Social Democratic deputy Petru-Gabriel Vlase for the office of Director of the Foreign Intelligence Service, according to a communiqué issued today by the presidential administration. Petru-Gabriel Valse is vice-president of the Chamber of Deputies, member of the defence, public order, and national security committee and member of the Joint Special Parliamentary Committee in charge with security legislation review. He is a graduate of higher education institutions in the field of national security and defence, and he has a PhD degree in military science and intelligence. Vlase would replace Mihai Razvan Ungureanu, who resigned in September 2016.



    BANKING – The top management of the National Bank of Romania submits today a new report on financial stability. It comes as the annual rate of inflation in May went above 5.4%, the highest in the last five years, with an exchange rate for the national currency around 4.66 lei per euro, rising deficits and rising public debt. The report analyzes the risks to financial stability and their gravity, as well as the domestic and international economic and financial context, the infrastructure and the regulatory framework. The previous document, issued late last year, revealed that there was no systemic financial risk, but that the plunging confidence of investors in emerging states was deemed a high risk, while rising macroeconomic tensions, personal debt were considered moderate risks.



    MOSCOW — The 21st edition of the World Football Championship kicks off in Russia today. It is the first edition of the championship hosted by a former communist bloc country. Proving their mettle in the final tournament are 32 national teams, while 11 cities across Russia will make the venues for the scheduled fixtures. The opening game will see Russia taking on Saudi Arabia. According to the correspondent of Radio Romania’s News and Current Affairs Channel in Moscow, Russia has invested tens of billions of dollars in the championship’s infrastructure, as well as a significant amount of political capital, hoping the event would bolster Russia’s image around the world. We recall Romania’s national team has failed to make it to the current edition of the World Cup. The World Championship held in France in 1998 was the last edition the national squad took part in.



    HANDBALL — Romanian national men’s handball team’s head-coach, Spaniard Xavier Pascual Fuertes, has amiably terminated his collaboration wit the Romanian handball federation on Wednesday, in the wake of the national team’s playoff fixture against Macedonia, counting towards the qualification for the 2019 edition of the World Championship. The Spanish coach stated he had taken the decision some time ago. We recall Xavier Pascual Fuertes signed a four-year contract with the Romanian Handball Federation, with the stated aim to have the national team qualify for the 2020 edition of the Olympic Games. We recall Romania has failed to make it to the 2019 edition of the World Championships although on Wednesday in Cluj, Romania defeated Macedonia, 26-25. However, our national squad went eight goals down from Macedonia in the first game, so on aggregate they were eliminated form the competition.


  • October 4, 2017

    October 4, 2017

    UNIONS – One of Romanias largest trade union confederations, Cartel Alfa, is holding in Bucharest today a protest rally in front of the Government headquarters in Bucharest. The unionists main reason for discontent has to do with the transfer of social security payments from employers to employees. On the other hand, they demand a restart of negotiations and the closing of collective bargaining agreements at all levels. Unionists are also unhappy with the Law on public sector salaries and the Social Dialogue Act. According to Cartel Alfa, some 10,000 people are to take part in the rally. During September 25 to 29, similar protests were held in several other Romanian cities.




    PARLIAMENT – The Chamber of Deputies in the Parliament of Romania is discussing and voting today on a simple motion tabled by the National Liberal Party and Save Romania Union, in the Opposition, on the subject of transport infrastructure. The debate had been scheduled for Tuesday, but was postponed at the request of PM Mihai Tudose, who announced Parliament that the Transport Minister Razvan Cuc was taking part in a joint meeting of the Governments of Romania and Bulgaria. Entitled ‘Romanias transport infrastructure is controlled by Social Democratic Party interests. Disillusion, demagogy and discouragement, the motion is aimed at dismissing Minister Razvan Cuc, accused of faulty management and lack of professionalism, as well as of blocking several major infrastructure projects.




    BANKS – The National Bank of Romania moved in the interbank market and lent a rough 2 billion euros to commercial banks, at 1.75% interest. The central bank did this after on Tuesday the 3-month Robor index, based on which most interest rates on loans in the national currency are calculated, had gone up for the 15th consecutive day, to 1.8%, the highest level since November 2014. We have more on this after the news.




    GERMANY – The reunification of Germany on October 3, 1990, paved the way for the unification of Europe as a whole, the President of Romania Klaus Iohannis said on Tuesday night, at a dinner given by the Embassy of Germany in Bucharest. Himself a member of the German ethnic community in Romania, the President emphasised that the bilateral relation was a solid, strategic one, based on concrete achievements and on the will to build together a better European future. Iohannis also said that Romania, a Francophone country with a substantial German cultural heritage, must stand united with the French-German engine of the European Union.




    SPAIN – The European Parliament is discussing today, in an emergency session, the crisis in Spain further to Sundays Catalan independence referendum. The European Commission said repeatedly that this was a Spanish domestic politics issue, but Catalan officials insisted for EU mediation in the matter. The head of Catalonias Government, the secessionist Carles Puigdemont, said the region would proclaim its independence within days. According to the Radio Romania correspondent in Spain, King Felipe has given the okay for suspending Catalan autonomy. He accused the authorities in Barcelona of lack of loyalty, and reiterated that Sundays vote was illegal.




    TENNIS – Romanian tennis player Simona Halep (2 WTA) has today managed a major victory against the Russian Maria Sharapova (104 WTA), 6-2, 6-2, in the eighth-finals of the Beijing tournament, which has 6.4 million US dollars in total prize money. This is Simonas first win against Sharapova in 8 matches. Now, Simona Halep has a new chance to become no 1 in the world, overtaking Spains Garbiñe Muguruza, who withdrew from the tournament in the first round. Also today, in the 16th-finals, another Romanian player, Monica Niculescu (65 WTA) has been defeated by the Chinese Shuai Peng (25 WTA), 6-3, 6-2. The third Romanian player in this tournament, Sorana Cirstea (44 WTA), is playing on Thursday, also in the eighth-finals, against the Czech player Karolina Pliskova (4 WTA).


    (translated by: Ana-Maria Popescu)

  • Central Bank Warns against Economic Risks

    Central Bank Warns against Economic Risks

    Romania remains financially stable, however the risks that might threaten this stability have grown since the previous year, reads the annual report of the National Bank of Romania, which maps the risks against the countrys financial stability and the dangers faced by its economic performance. This year, the National Bank added two new risks to the ones mentioned in its 2015 report. One of them is a severe systemic risk related to the uncertain legislative framework. The Governor of the central bank, Mugur Isarescu, explained:



    Mugur Isarescu: “Over the past six months, there has been a growing number of legislative initiatives aimed at regulating the financial and banking market through retroactive intervention on the contracts signed between banks and their clients. The best known of them is the debt discharge bill. When Parliament revisited the bill, it passed a number of amendments that addressed some of the problems the original text raised, but the central issues are, on the one hand, the retroactive application of the law, and on the other hand the stability and predictability of the legislative environment. Another element that prompted us to identify all legislative proposals in the financial-banking sector as a severe systemic risk is the information we have about other legislative initiatives that may seriously affect the countrys financial stability, some of them motivated by 2016 being an election year.



    Another new risk mentioned in the report is the so-called Brexit, the effects of which would question the very functioning of the European Union and would entail possible capital outflows, reductions of EU funds, the depreciation of the national currency, and higher financing costs. Also viewed as systemic risks are the possible decrease in investors confidence in the emerging markets and the refugee crisis. The deputy Governor of the National Bank, Liviu Voinea, spoke about other possible problems:



    Liviu Voinea: “The growing foreign uncertainty must not be deepened by domestic weaknesses that we might create for ourselves. The banking sector has been strengthening, contagion risks have lowered, loans in the national currency have come to account for the largest share of the total loans. On the other hand, although payment discipline has improved, it is still a vulnerable point for non-banking financial companies. Similarly, access to home loans has improved, but it risks decreasing because of the recent legislative initiatives.



    As of next year, the central bank will issue bi-annual reports, to be released in April and October, Governor Mugur Isarescu announced. This is on the one hand because the Romanian central bank adopted the model of the European central bank, and on the other hand because it seeks to provide updated and accurate data on the domestic and foreign challenges facing the countrys financial stability.


    (translated by: Ana-Maria Popescu)