News

Daily Newsletter - 10 November 2017

Summary

Macroeconomic News (3)

EU forecasts a 5.7% growth for the Romanian economy in 2017 

The European Commission has reviewed its estimations referring to economic growth and Romania's deficit in 2017 and 2018 upwards, warning at the same time that uncertainties regarding the governmental policies risk to affect the economic growth. Pursuant to the autumn economic forecasts published today by the community Executive, Romanian economy is to record a 5.7% rise in 2017, significantly up compared to the estimations of the spring forecasts indicating a 4.3% increase in GDP. For 2018 too, the European Commission reviewed its estimations regarding the Romanian economy's growth upwards to 4.4% from 3.7% in the spring forecast.

Top

Iancu: Electricity price on the energy exchange has reached stunning values. I request ANRE and the Government to intervene for capping these growths 

The electricity pice on the spot market, on the Day before market, of OPCOM exchange reached RON 700/MWh in the first days of this month, which is a stunning value, so that the National Energy Regulation Authority and the Government must intervene for amending the legislation allowing these prices to arise, Iulian Iancu, the head of the Investigation commission on ANRE's activity, stated Thursday at the end of the hearings.

Top

Romania's exports went up 6% in September, while imports rose 9.2% 

The exports of Romanian goods rose 6% in September, up to 5.56bn euros, a rhythm below that of imports, while the commercial deficit continued to grow, the data published Thursday by the National Institute of Statistics (INS) show. Imports increased by 9.2% in September, compared to the same month of last year, to 6.58bn euros, News.ro writes.

Top

Financial News (5)

A cry from NBR: Romania's potential is compromised by the increase in the consumption of other countries' products on the debt made by us. Exchange rate and inflation 

Macroeconomic balances suffer a significant deterioration as a result of the government's pro-cyclical policy to stimulate consumption. The pro-cyclical policy led to the increase in the commercial deficit and to the current account one and amplified the depreciation pressures of Leu, according to NBR governor Mugur Isarescu's explanations presented in the Report on inflation.

Top

NBR REPORT Approximately 4 million people aged between 15 and 64 do not have, do not look for a job and do not carry on an activity independently 

Approximately 4 million people aged between 15 and 64 do not have, do not look for a job and do not carry on an activity independently, according to NBR Report on inflation presented Thursday by governor Mugur Isarescu. The same document indicates that only 10% of the inactive population would be available for work although they are not looking for a job, News.ro writes. Half of the inactive population lives in the rural environment.

Top

ING Romania recorded a 22% rise in returns in the third quarter, up to RON 1.06bn 

The Romanian branch of the Dutch financial group ING announced Thursday that it had recorded a 22% rise in returns in the third quarter, up to RON 1.06bn (230m euros). "In late September 2017, ING Romania marked a 22% increase in revenues, cumulating RON 1,059m, generated mainly by the growth in the number of clients and in the volumes of loans granted through all business lines", the communication shows.

Top

3-month Robor index rose slightly to 1.87%, while the 6-month index increased to 2.03% 

3-month Robor index, used in calculating the cost of loans in lei with variable interest, rose slightly to 1.87% Thursday, from 1.86% Wednesday, according to NBR, but it did not reach the maximum level of the recent period, of 1.89%. Also, the 6-month index, used in calculating mortgage interest rates, increased to 2.03%, from 2.02% on 8 November.

Top

PARAKLETOS ASSOCIATION: "The problem of CHF lending has become a social phenomenon" 

The problem of CHF loans granted to population has become a social phenomenon, according to a survey carried out by Parakletos Association appreciating: "Its approach must be made globally and target a general settlement for all the people who took up loans in Swiss francs to benefit from it. We remind it is about at least 60,000 loans in Swiss francs taken up after 2000, in Romania".

Top

Investment News (1)

Phoenix Logistics Center has been completely leased to DB Schenker, CTP will modernize the park by 1.5m euros. The American fund Lone Star has bought the park for 9m euros and has sold it for 7m euros 

Phoenix Logistics Center from Chiajna, logistic park recently bought for 7m euros by CTP, the largest developer and long-term administrator of premium industrial and logistic parks in Romania and the Central and Eastern Europe, has been completely leased to DB Schenker, international transport and logistics company, the developer preparing an about 1.5m euros investment for modernizing the park.

Top

Legislative News (2)

The law may be amended for the international financing institutions to participate in the public auctions 

Vice prime minister Marcel Ciolacu said Thursday, at a meeting with an EBRD delegation that the possibility to amend the law for the international financing institutions to participate in the public auctions, especially for awarding contracts in infrastructure, is being analyzed. Vice prime minister Marcel Ciolacu and the finance minister Ionut Misa had a meeting with a delegation of the European Bank for Reconstruction and Development (EBRD), Thursday, at Victory Palace. According to a Government communication, Ciolacu informed EBRD about the concrete measures the Government intends to take notably for making the auction system more transparent, as well as regarding an eventual amendment of the law for the international financing institutions to participate in the public auctions, preponderantly in infrastructure.

Top

Negative opinion of CSM on justice laws 

The plenary of the Superior Council of the Magistracy (CSM) gave a negative opinion, Thursday, to the legislative proposals to amend the justice laws received from the Chamber of Deputies. The opinion is consultative so that parliamentarians can ignore it. All the courts of the country, except one, as well as the General Prosecutor's Office and DNA filed proposals to dismiss the draft laws and formulated tough criticisms, the past days.

Top

Politics (2)

Orban: PSD shortens the time it will govern. They increased installments, electricity, gas and fuel prices. People's lives are getting worse by the day 

Ludovic Orban: The transfer of contributions is an artifice: it is applied to the gross wage, as percentage. The employer paid without affecting the gross wage before. PSD turned the budget into dust by increasing the costs providing electoral alms and tries to cover some of the budget gaps. In the public sector, by transferring the contributions, the growth of the net wage will be of maximum 4%. The rest of 21% turn into income sources to the pension budget, to the health budget and to the budget insurances. And PSD promised a 25% rise.

Top

Iohannis: It is a great injustice that businessmen's efforts are cancelled by uninspired tax policies 

President Klaus Iohannis sent, Thursday, a message on the occasion of the 24th edition of "National Top of Firms" Gala from Romexpo, contending that it is a great injustice that businessmen's efforts are cancelled by uninspired tax policies and considers that these practices must cease.

Top