News

Daily Newsletter - 12 August 2019

Summary

Macroeconomic News (5)

Surprising contraction of foreign trade

The value of monthly exports amounted to EUR 34.89 billion in the first half of this year, down 5.5% on an annual basis, while imports amounted to EUR 43.59 billion, down 6.9%. The trade deficit was EUR 1.13 billion, down 24% on a monthly basis and 13% on an annual basis, according to data released by the National Statistics Institute (INS).

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Daniel Daianu spoke about budget revision

Daniel Daianu, the new President of the Fiscal Council, said the revision has come at a time when the state budget is under huge pressure. The situation is bound to grow worse next year, when the 3% deficit cap will be exceeded unless additional revenue is found.

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19.46 million cubic meters of timber harvested in 2018

The timber harvested in 2018 amounted to 19.46 million cubic meters, up 1.14 million cubic meters compared to 2017, according to data centralized by the National Statistics Institute (INS). Compared to 2014, the growth rate is 8.8%.

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560,378 tons of sunflower seeds exported in four months

Romania exported 560,378 tons of sunflower seeds in the first four months of this year, up 50,501 tons compared to the corresponding period of last year, according to data released by the Ministry of Trade and Entrepreneurship (MMACA). The value of seeds sold abroad reached EUR 232.58 million.

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Budget revision on Monday meeting's agenda

The draft decrees regarding the state budget revision were put on the agenda for the Cabinet's Monday meeting, although they have yet to be posted on the Cabinet's website. On Tuesday, the Ministry of Finance had announced the drafting of a budget revision that met the 3% cap on deficit.

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Financial News (3)

Banks approved fewer mortgages

Romanians took out EUR 1.2 billion worth of new mortgages in the first half of this year, down more than 10% compared to the corresponding period of 2018, according to calculations based on BNR data. The most likely reason for this sudden slowdown was the tightening of borrowing terms, followed by uncertainties caused by the tax on financial assets.

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SME program could have RON 700 million budget

The authorities proposed a guarantee budget of RON 700 million for IMM Invest Romania, a program for supporting the investment projects of small and medium-sized enterprises. The budget could increase, depending on the program's performance, according to a draft decision published by the Ministry of Finance.

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Change in provision calculation method pushed Raiffeisen Bank earnings down 9%

Raiffeisen Bank, the fifth biggest bank in the country, reported RON 384 million in earnings for the first half of this year, down 9% year-on-year. The bank blamed the result on a change in the method used to calculate loan provisions. If the change had not been made, the bank's earnings would have been up 13% year-on-year.

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Investment News (1)

Bucharest Fourth District to build hospital

The biggest dental university hospital in Romania will be built in Bucharest's Fourth District, using public funds. The cost of building and equipping the hospital was estimated at EUR 10 million, VAT not included. The construction work is scheduled to be completed in three years, according to Fourth District Mayor Daniel Baluta.

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Legislative News (1)

Ministry of Economy mulls dropping special administration

The Ministry of Economy wants to amend Law 137/2002 in order to drop the special administration of state-owned companies in the period leading up to privatization, according to a draft bill posted on the official website.

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Politics (1)

Orban: PNL ready to take over government

Ludovic Orban, President of the National Liberal Party (PNL), said the Liberals are ready to assume the responsibility of running the country at any moment.

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