News

Daily Newsletter - 11 October 2017

Summary

Macroeconomic News (4)

The unadjusted GDP rose 6.1% in the second quarter 

The Gross Domestic Product (GDP) recorded a 6.1% rise in the unadjusted series and 5.9% in the seasonally adjusted series in the second quarter of the year, compared to the same period of last year, according to a press release published on the site of the National Institute of Statistics (INS). At the same time, GDP grew by 5.9% in the unadjusted series and by 5.8% in the seasonally adjusted series in the first quarter of 2017 compared to the first quarter of 2016.

Top

Romanian industry goes smoothly. The rise was 10.8% at eight months 

The overall turnover in industry (internal market and external market), in nominal terms, rose 10.8% in the first eight months of 2017 compared to the same period of last year, according to the data published Tuesday by the National Institute of Statistics (INS). During 1 January - 31 August 2017, the overall turnover in industry rose 10.8% compared to the same period of last year, due to the growth in extractive industry (+13.6%) and in the processing industry (+10.7%).

Top

IMF has improved its estimations on Romania's economic growth in 2017 and 2018 

The International Monetary Fund (IMF) reviewed its estimations on this year's Romanian economic growth, up from 4.2% to 5.5%, according to the newest "World Economic Outlook" report, published Tuesday by the international financial institution. Also, IMF improved its prognosis on the growth rhythm recorded by Romania's economy in 2018, up to 4.4%, compared to the 3.4% rise forecast in April, Agerpres writes.

Top

Romania's exports climbed by 10.7% in August, while imports rose 9.3%. The commercial deficit grew by 3.9%, to 1.06bn euros 

The exports of Romanian merchandises climbed by 10.7% in August, up to 4.92bn euros, a rhythm higher than that of imports, but the commercial deficit continued to rise, the data published Tuesday by the National Institute of Statistics (INS) show. Imports increased by 9.3% in August compared to the same month of last year, to 5.98bn euros. Following this evolution, Romania's commercial deficit was 1.06bn euros in August, up 3.9% compared to the level recorded in the same month of last year.

Top

Financial News (3)

Raiffeisen Bank converted nearly 2000 loans from Swiss francs into lei in the past 3 years 

Raiffeisen Bank converted 663 loans from Swiss francs into lei in 2017 and reduced the number of loans in the Swiss currency from its portfolio at 5221, half compared to 2008. The Austrian bank, number four in assets on the Romanian market, had 11,600 credits in Swiss francs in late 2008 and an equivalent balance of 449m euros in loans.

Top

3-month Robor rose up to 1.79% 

3-month Robor, basing on which the interests in most loans in lei are calculated, rose up to 1.79% yesterday, according to the data published by the National Bank of Romania (NBR). Robor kept increasing fast since 18 September, when it had reached 1%, while last week, on 3 October, Robor reached 1.8%, the highest level since 25 November 2014, when NBR had made a massive insertion of liquidity, of about RON 9.3bn, through a repo operation.

Top

NBR: Banks brought RON 16.7bn to the capital in the past nine and a half years 

The shareholders of the local banks brought RON 16.7bn (3.6bn euros) to the capital during 2008-June 2017, for covering the losses generated by the increase in provision expenses for doubtful loans, which gained momentum during the crisis, according to some data presented by Florin Georgescu, prime vice governor of NBR. As a result of these increases, the aggregated value of the share capital rose 10 times between 2000-2016, up to 5.8bn euros.

Top

Investment News (2)

The Government and General Dynamics have agreed - the Americans will manufacture armored conveyors at Uzina Mecanica Bucuresti 

The Government signed Tuesday an agreement memorandum with the American military car maker General Dynamics, for manufacturing armored conveyors at Uzina Mecanica Bucuresti. The American company will transfer technology in Romania, the first conveyors being purchased by the Ministry of National Defense in one of the facility programs approved by CSAT.

Top

Bosch has opened a training center for students in Jucu, a 6m euros investment 

The German company Bosch, global leader in the supply of technologies and services, opened a training center today, in Jucu (Cluj county) intended to train students in advanced technologies, an about 6m euros investment. In Jucu, the German company holds an electronic component plant for the motor industry.

Top

Legislative News (1)

The Senate returns the draft law on approving the Ordinance on split VAT to the Budget Commission 

The plenary of the Senate decided Tuesday, at the proposal of senator Serban Nicolae, to send back the draft law on approving Ordinance 23/2017 on split VAT to the Budget Commission, for one week.

Top

Politics (2)

Iordache: If there are discussions between the PSD leader and the prime minister, they must be disjointed as quickly as possible; decisions, in the National Executive Committee 

The PSD deputy Florin Iordache stated Tuesday that the "discussions" between the leader of the party and the prime minister must be finished as quickly as possible, mentioning that any decision on government reshuffle will be taken in the National Executive Committee and the party remains united. "The party does what it has done up to now, it remains united. Even if there are discussions between the leader and the prime minister, in my opinion, these discussions must be finished, disjointed, closed as soon as possible so that our objective is enforcing the governing program", he said mentioning that the "so-called conflict" must end.

Top

Badalau: The prime minister is upset some things are not working in the Government. There was no scandal, there are discussions 

The executive president of PSD, Niculae Badalau, stated Tuesday that prime minister Mihai Tudose is upset some things are not working in the Government, but there had been no scandal, but there are discussions. "There was no scandal, there are discussions. (...) The prime minister is extremely upset and considers some ministers have slowed down the pace", Badalau stated at PSD headquarters after a meeting in which the PSD leader Liviu Dragnea and prime minister Mihai Tudose participated.

Top