Radio România Internațional

Tag: index

  • 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)

  • More expensive loans

    More expensive loans


    The 3-month ROBOR index, based on which the costs of consumer loans in domestic currency with variable interest rate are calculated, continues to rise, and has reached 8.11% per annum. The last time the index was higher, namely 8.15%, was on February 1, 2010, the central bank says. Early this year, the index was 3% per year.



    Almost half of the loans in domestic currency taken out in Romania are currently based on the ROBOR index. The financial analyst Adrian Negrescu says a lot of Romanians now have to pay 50% or even 80% higher instalments then last year.



    A first solution would be to switch to the consumer loan reference index (IRCC), so that instalments may drop for 1-2 years, Adrian Negrescu believes:



    Adrian Negrescu: “In order to switch from Robor to IRCC, borrowers only need to go to the bank where they have taken out the loan and submit an application, which is usually resolved within 30 days. It is a lawful request that banks are bound to comply with as quickly as possible. If indeed the bank in question denies the application, which is a possibility, the solution is to take the matter to the Banking Dispute Settlement Centre (CSALB), an institution that helps people, free of charge, to negotiate new lending terms and conditions with banks.”



    Another option is loan refinancing, based on offers from various banks. For those who lose their jobs, the only solution is to postpone repayment for a few months, until they manage to get hired.



    Adrian Negrescu: “For those experiencing difficulties, i.e. who fail to get a new job, personal bankruptcy or transferring an asset in lieu of payment are 2 other options that may help them get rid of the burden of a loan they can no longer afford.”



    The financial analyst also warns that as long as inflation remains high, interest rates will continue to go up. He says ROBOR is expected to reach 9% in the forthcoming period.



    A rise in the key interest rate is the most frequently used measure by central banks, which are in charge of securing price stability, when they try to keep inflation in check. To reduce the cash available in the market, they raise interests and thus deter further borrowing. But the measure also impacts older loans, in that it pushes variable interests up. The more expensive the loans given by central banks to commercial banks, the higher the interest rates in the interbank market.



    At European level, several central banks have increased interest rates because of the global economic situation. Europe has been struggling with the COVID-19 pandemic, which has upset supply chains, and in addition, since February, the war in Ukraine and the sanctions against Russia have been shattering the energy market. (AMP)


  • Romanians are bracing up for swollen mortgage installments

    Romanians are bracing up for swollen mortgage installments

    For
    the first time in the past nine years the three-month ROBOR index, on
    which the cost of consumer loans in RON with variable interest rate is being calculated,
    has exceeded the 5% threshold sending chills down the spine of the Romanians
    who have mortgage rates to pay.




    The
    increase is significant as a year ago the aforementioned index stood at 1.59% and
    shot up to 3.01% in January. The six-month ROBOR index, on which mortgage installments
    are calculated, is now exceeding 5%. On an upward trend in the past year, the
    index is three times higher than a year ago, when its value stood at 1.68%. In
    January ROBOR stood at 3.14% and the evolution of the two indexes, which
    reflects the way commercial banks are borrowing money from each other, has been
    influenced by several factors such as the Central Bank monetary policy,
    inflation and fiscal policy.






    Pundits
    believe the ROBOR index will continue to grow with the inflation rate. In an attempt to curb inflation, since the
    beginning of the year, Romania’s Central Bank has repeatedly increased the monetary
    policy interest rates on which interest rates of the loans given by the
    commercial banks are based. The situation has become difficult for people who
    have to pay mortgage rates and experts believe that refinancing could be a
    solution for those with ROBOR-depending loans, as there are banks, which offer loans
    with a fixed interest rate under 5%.






    Fuel prices
    have been swollen by the war in neighboring Ukraine but the Competition Council
    in Romania is carrying out an investigation on the sharp increase in these
    prices on March 9th, and the panic caused among people after a gas
    station in the country’s northwest had started selling petrol at the staggering
    price of 2 euros per liter.


    Huge
    cues could be seen at petrol stations all over Romania where people panicked amid
    fears that prices could increase and fuel reserves exhausted.


    In a Parliament
    address, the head of the Competition Council, Bogdan Chiritoiu, said the fuel
    market is being monitored by the council, which is gleaning data from petrol
    stations all over the country.




    Bogdan Chiritoiu: There is instability in the region of course,
    but besides this instability, which we must accept as a natural thing, there is
    also the unfair behaviour of some companies, which we are investigating and
    eventually sanctioning. Our investigations last for two years on an average and
    the fines and sanctions that we apply are of tens and hundreds of millions.
    Such fines cannot be given based on a mere report.




    On
    March 9th, the government ordered ample checking at all petrol
    stations and gave assurances that no speculation with fuel prices would be
    admitted. Now the government is working on legislation amendments aimed at combating
    speculation and unfair competition, drawing up a mechanism meant to prevent
    unjustified price increases.




    (bill)

  • April 6, 2022

    April 6, 2022

    COVID-19 2320 new COVID-19 infections have been reported in Romania on
    Wednesday, a lower number than in the previous day. Authorities have also
    announced 18 related fatalities. 2290 patients are being treated in hospitals,
    out of whom 338 in ICUs. However, doctors have cautioned that the number of flu
    infections is on the rise and some patients were in need of hospital care.








    AID On Tuesday in Berlin, Germany, France and Romania co-chaired an
    international conference on the setting up of a support platform for the
    Republic of Moldova, an ex-Soviet Romanian-speaking country. The participants,
    roughly 50 delegations representing international organizations and countries,
    have pledged to grant Chisinau 695 million Euros worth of aid as well as
    political support in the context of the war in neighboring Ukraine. Nearly 12
    thousand out of the 100 thousand Ukrainian refugees, who arrived in the
    Republic of Moldova, are to be taken over by other countries.








    INTEREST The Robor index, after which costs for
    consumer credits with variable interest rate are being calculated, has gone up
    from 4.62% to 4.68 % and according to Romania’s Central Bank, this has been the
    highest in the past 9 years. Romania’s Central Bank (BNR) has today raised the
    yearly key rate from 2.5 to 3%. The key rate, which sets the future evolution
    of all bank interests, is also the main element in the fight against inflation.
    The BNR has cautioned against the inflation rate, which is expected to reach
    higher levels in the following months than previously estimated. Inflation is
    on the rise due to the latest price hikes in fuel and food against the
    background of the war in Ukraine and the international sanctions imposed.








    VICTORY U-BT Cluj-Napoca, a basketball side from north-western Romania on
    Tuesday secured a 76-73 home win against MHP Riesen of Germany in the quarter
    finals of the Champions League. At their first participation in the
    aforementioned competition, U-BT performed before 10 thousand spectators, a
    record number for indoor matches in Romania. The return game against MHP is due
    in Germany in a week. In case of an aggregate draw, the Romanian champions are
    to play another home game after the best-of-three system. The winner will be up
    against the victor of the match pitching Baxi Manesa against Unicja Malaga. In
    the other matches of the quarters Israeli side Hapoel Holon is up against
    French team Strasbourg while Spanish side Lenovo Tenerife plays Tofas Bursa of
    Turkey. The Final Four will be hosted by Bilbao over May 6th and the
    8th.








    EMBASSY A man lost his life on Wednesday after he
    had rammed his car into the wall of the Russian embassy in Bucharest. According
    to investigators, the man crashed his car into the embassy’s gate and set
    himself ablaze. Many containers with flammable substances have been found in
    his car. An investigation is underway by the prosecutors of the Bucharest Court
    and the Homicide Department of the Bucharest Police. According to papers in
    Bucharest, the man has been identified as Bogdan Draghici, the head of the
    Anti-discrimination Association of All Fathers, TATA, who was indicted in the
    past for having sexually abused his daughter. Before the incident Draghici had posted
    on Facebook a message of solidarity with Ukraine invaded by the Russian troops.






    (bill)

  • Debates on gender inequality

    Debates on gender inequality

    Although some inequity still exists, the European Union has made substantial progress in the past few decades towards ensuring gender equality. According to the European Commission, there are encouraging signs, with a growing number of women working and obtaining better qualifications. The number of women working in poorly paid sectors and holding fewer decision-making positions is still large.



    Brussels has a strategy in place to make sure that by 2025 Europe is even closer to the goal of becoming a continent where men and women are equal. All Europeans, women and men, girls and boys, should enjoy the freedom to find and follow their path, should have equal chances to prosper, should be equal members of society and become leaders, if they deserve it, the strategy argues. Key targets include ending violence against women, fighting gender stereotypes, doing away with gender disparities in the labour market and ensuring equal participation in various economic sectors, bridging the wage gap, eliminating gender disparities in terms of family responsibilities and reaching gender balance in decision-making processes and in politics.



    Against this background, the Romanian labour minister Raluca Turcan, attending the 3rd edition of the ʹWomen In Economyʹ Gala organised by the National Confederation of Women Entrepreneurs (CONAF), said that unfortunately gender inequality and discrimination are not seen as imperative issues in Romania. Women appear to have enough representatives in all areas, and access to opportunities seems to be equal.



    However, at a closer look, the statistics provided by EU institutions and private structures indicate that substantial gaps exist. According to Raluca Turcan, the global Mastercard Index of women entrepreneurs indicates that only 27% of the existing businesses are held by women.



    Conversely, for instance, Eurostat says that during the pandemic the share of women in the front line of healthcare services was 80%, as against 20% for men, which proves that in some sectors women are a lot more vulnerable to the shocks caused by the crisis.



    Romania is an open society and progress has been made, but this doesnt make Romanians less traditionalist, added the labour minister Raluca Turcan, one of the only 2 women ministers in the current cabinet in Bucharest. (tr. A.M. Popescu)