News

Daily Newsletter - 12 June 2017

Summary

Macroeconomic News (4)

Romania exported only 1 million cubic meters of natural gas to Moldova 

Romania sold Moldova only slightly more than 2 million cubic meters of natural gas in the past two years, despite the fact that the Iasi-Ungheni pipeline can handle 525 million cubic meters per year. The main reasons invoked by the authorities are the technical situation and the current configuration of Moldova's transport system.

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Ministry of Agriculture vows massive irrigation project 

The Ministry of Agriculture is planning to build by 2020 enough irrigation systems for 2 million hectares of farmland, according to statements made on Saturday in Botosani by Minister Petre Daea. The Minister added that the water sources and the irrigation canals would be offered to farmers free of charge.

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Trade deficit up more than 20% 

Romania's trade deficit amounted to more than EUR 3.36 billion in the first four months of this year, up 20.3% from the corresponding period of 2016, according to the report released by the National Statistics Institute (INS) on Friday.

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Hiring up 40% in H1, 2017 

The first part of 2017 had the best hiring figures in a decade. Hiring surged more than 40% in H1, 2017, and the shortage of labor has expanded to all industries, with the IT sector being especially hard hit, according to data published by labor market solutions provider Adecco on Friday.

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Financial News (4)

Raiffeisen: Higher salaries boost interest in loans 

The borrowing market will continue to grow this year, driven by growing salaries across the board, and the banks will see their profits jump, according to the annual report on the banking sector drafted by Austrian group Raiffeisen. "Interest rates should stay low, which would improve the dynamic of borrowing," noted the bank's analysts.

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Lazea, BNR: 80% of the poorest Romanians and 40% of the wealthiest have problems keeping up with their loans 

80% of Romania's poorest decile have problems keeping up with their loan installments. This is also true of 40% of the richest decile, according to Valentin Lazea, chief economist of the National Bank of Romania (BNR). BNR data indicated a drop in the number of bad debtors in April.

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BCR's Dana Demetrian spoke about mortgages 

Dana Demetrian, BCR's executive vice president for retail and private banking, talked with Mediafax about the things that prospective banking clients should pay attention to. She advised clients to keep installments low in order to avoid an unpleasant situation in case of salary volatility.

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Banca Transilvania shares down 2.77% 

Banca Transilvania shares dropped 2.77% on Friday, while the Proprietatea Fund saw its units fall 5.22%. Friday's trades amounted to RON 46.4 million and Banca Transilvania was the most traded stock, followed by the Proprietatea Fund. This was the fourth consecutive session when the BVB closed down.

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Investment News (1)

Therme Bucharest opens biggest urban beach in Europe 

Therme Bucharest will open on June 10 the biggest urban beach in Europe - Sands of Therme. The EUR 5 million project features 30,000 sqm of beach, a tropical pool, 1,500 beach chairs, more than 600 palm trees and football and volleyball areas.

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Legislative News (1)

Cabinet approves enforcement guidelines for personal insolvency law 

The enforcement guidelines for the personal insolvency law were approved by the Cabinet on Friday. The norms focus on the conciliation meetings, the communication between debtors and creditors and the fees charged by procedure administrators and liquidators.

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Politics (2)

Ponta: Grindeanu-Firea conflict is based on personal ambitions and frustrations 

Former prime minister and PSD leader Victor Ponta said on Sunday that the conflict between PM Sorin Grindeanu and PSD leader Liviu Dragnea is "toxic, artificial, based solely on personal ambitions and frustrations, irrelevant to the lives of Romanians".

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President Iohannis goes to Germany and France 

President Klaus Iohhanis will be in Berlin on June 19 and 20, according to official sources. Iohannis will meet with German President Steinmeier and Chancellor Angela Merkel. On June 22 and 23, the President will be in Brussels to meet French President Emmanuel Macron.

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