Economy and Energy
The prospects of the Romanian economy are positive, both according to national authorities and according to the World Bank, IMF and the EC. Meanwhile, Bucharest has announced the largest Stock Exchange listing in Romania.
Corina Cristea, 12.06.2014, 15:15
The World Bank lowered its estimates concerning global growth rates this year. However, for Romania, it has improved its growth forecast from 2.5% in January to 2.8%, while estimates for next year go as far as to 3.2%. Similar figures have been announced for Central and Eastern Europe.
According to a report issued by the World Bank, the growing external demand will lead to improved employment and consumption rates in Romania. At the same time, the low inflation will enable the central bank to contribute to the economic recovery through its monetary policy. The Government of Romania, together with the IMF experts who are these days in Bucharest for a new assessment of the stand-by agreement signed last autumn, expect a 2.2 to 2.5% GDP increase this year and a 2.5% growth next year. The Romanian authorities are making efforts to convince the international lenders that they have resources to cover a 5% reduction of social security contributions as of July.
On the other hand, the Government wants to get at least 435 million euros for 51% of the Electrica shares, which it will list on the Stock Exchange. According to a previous plan, listing preparations should be completed by June 26th, and trading should start on July the 3rd. PM Victor Ponta is confident that the operation will be a success, and says the proceeds will be channeled into investments.
Victor Ponta: “I am confident that this will be a successful listing, as it happened with Romgaz, Transelectrica, or Transgaz. We intend to keep the entire amount generated by this sale for investments in the energy infrastructure.”
The Minister Delegate for Energy, Razvan Nicolescu, said this would be the largest Stock Exchange listing in Romania, and the price per share would range between 11 and 13.5 lei. Large investors will be able to buy 85% of the shares, with the remaining 15% earmarked for small investors. If the demand is high, the percentage allotted to small investors may be increased to 22%, and all buyers will be offered discounts. Razvan Nicolescu said, on the other hand, that as of July 1st natural gas producers will have to sell some of their output through the commodity exchange, and the same measure will be applied to natural gas suppliers starting 2015.
