Press Review - May 13, 2016

05.13.2016 By Gabriela Stan

Romania’s Largest Lenders Raise Required Down Payment On Mortgage Loans

The largest lenders in Romania started to raise the required down payment on mortgage loans due to implementation of the law on debt discharge.

Lender BCR raised the down payment required on mortgage loans from 15% to 35% and cut the reimbursement period from 30 years to 25 years. The bank also increased the minimum amount to be borrowed, from RON22,000 to RON45,000.

"BCR will closely monitor the market and the impact of the legislation to adjust the lending policies accordingly,” said Dana Demetrian, BCR Retail&Private Banking vice-president.

So far, ING Bank, BCR, BRD, Raiffeisen, CEC Bank, Alpha Bank Bancpost, and UniCredit Bank have raised the down payment required on mortgage loans, on the backdrop of the new legislation allowing retail mortgage borrowers to return real estate collateral to banks in exchange for writing off their loans. (Romania Libera)

Romgaz Cannot Sell Entire Natural Gas Output Due To Cheaper Imports

Romania’s largest natural gas producer Romgaz (SNG.RO) said it can no longer sell its entire output at the moment as Romania imports natural gas at prices similar with the prices of locally-produced gas, said Vlad Pavlovschi, head of Romgaz business development department.

“We currently produce more than we sell as we have got competition from imported gas whose prices are not necessarily reflecting the efforts of the foreign producer. This is a problem for local producers as 7-8% of the consumption is not covered from local production, but imported,“ Romgaz official stated.

Pavlovschi said that they are not excluding the possibility to close down certain gas wells due to such import issues. (Adevarul)

Energy Regulator ANRE Asks For Annulling Gas Price Hike Scheduled For July 1

Romania’s energy regulator ANRE asked the Energy Ministry to abrogate the government decision on the calendar for the liberalization of natural gas market for household consumers, which stipulates a natural gas price hike as of July 1, according to ANRE president Niculae Havrilet.

The price of natural gas for household consumers should have been increased by 10% as of July 1, according to the liberalization calendar agreed by the Romanian authorities with the International Monetary Fund and the European Commission.

If the price of local natural gas is increased by 10% on July 1, then it would be higher than the price of imported natural gas.

Under these circumstances, ANRE decided not to follow the price liberalization calendar, as they have already reached the convergence between the imported and local natural gas.

According to the definition of the gas market liberalization, every household or industrial consumer can negotiate its natural gas price with no intervention from Romanian authorities. (Puterea)

Liberals Reach Punctual Agreement With Cristian Popescu Piedone For Mayor Of Bucharest District 4

Liberals have reached a punctual agreement with Cristian Popescu Piedone, according to which the former mayor of district 4 would support PNL candidate, Razvan Sava, who is currently the interim Bucharest mayor, for mayor of Bucharest district 4.

“Mr. Cristian Popescu Piedone has decided to support my candidacy for the position of mayor of Bucharest District 4, as his party, PPUSL, has no candidate for this position,” Razvan Sava posted on his Facebook page.

Piedone cannot run for mayor of Bucharest District 4 as Bucharest Court ruled twice he is not allowed to file his candidacy. (Adevarul)

Air Quality Levels Exceed WHO Limits In Most Of The Cities In The World

 Over 80% of the people living in the cities all over the world are exposed to air quality levels that exceed the limits established by World Health Organization (WHO).

According to a WHO study on urban air quality, 98% of the cities with more than 100,000 inhabitants do not meet WHO air quality levels. Air pollution increases the risk of stroke, heart disease, lung cancer and respiratory diseases, mainly asthma.

Experts compared a total of 795 cities in 67 countries for levels of small and fine particulate matter during a five-year period, between 2008 and 2013, and found out that London and Geneva are among the most polluted European cities. (Adevarul)