News

Daily Newsletter - 12 September 2017

Summary

Macroeconomic News (4)

New orders up 12.3% in July 

The new orders reported by the processing industry for July were down 7.6% on a monthly basis and up 12.3% on an annual basis, according to the National Statistics Institute (INS).

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Trade balance deficit up EUR 1.7 billion 

The trade balance deficit reached EUR 6.8 billion at the end of July, up EUR 1.7 billion (33.1%) year-on-year, according to the National Statistics Institute (INS). At the same time, the value of net investment in the national economy dropped 0.2% in the first half of the year.

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Investment reduction to unbalance economy 

The reduction of investment funds in order to boost payroll, as stipulated by the budget review, will lead to an increase in consumption and encourage imports. This will lead to economic imbalances, according to analysts consulted by Mediafax. The Cabinet is planning to slash the investment budget by almost RON 10 billion this year.

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Industry turnover up 10% in July 

The industry turnover is up 9.9% year-on-year, but down 3% compared to the previous month. The mining industry, the capital goods industry and the energy industry have performed better than the market.

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Financial News (3)

Hundreds of millions of euros stashed in tax havens

Hundreds of millions of euros were sent by local banks to tax havens, according to the Minister of Finance, Ionut Misa. This is an official confirmation of what the "Bursa" daily has been saying since March. "We have three major inspections ongoing. I told the people at the Romanian Banking Association (ARB): 'You can't not pay profit tax for ten years'. We're monitoring the paperwork on a monthly basis," said the Minister.

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Euro stays at RON 4.59 

The National Bank of Romania (BNR) posted a reference exchange rate of RON 4.5978 per EUR, close to Friday's rate. This is the 11th consecutive session of the forex market when the euro stays at RON 4.59.

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Banking system's solvency rate at all-time high 

The banking system's solvency rate, one of the most important indicators tracked by the National Bank of Romania (BNR), has been oscillating between 11.85% and 19.83% over the past decade, above the 10% minimum threshold. The liquidity indicator passed 250% in the first half of this year.

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Investment News (1)

CGMB approves budget adjustment 

The Bucharest City Council (CGMB) approved the city budget's adjustment at Monday's extraordinary meeting. The Social Security Directorate (DGASMB) will receive an extra EUR 6 million for disabled children, while EUR 4.4 million will go to two hospitals and almost EUR 4 million to RADET.

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Legislative News (1)

Nutrition experts to determine inmates' food 

The Cabinet has passed a bill putting nutrition experts in charge of setting the food needs of prison inmates. The criteria include the quantity and quality of food, in accordance with the European Court of Justice's rulings.

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Politics (2)

Roxana Wring is new leader of USR Bucharest 

Roxana Wring is the new president of the Bucharest organization of the Save Romania Union (USR). The new vice-presidents are Florin Cobzac, Andreea Vasilescu, Vlad Gheorghe and Marian Bumbar.

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Iohannis: We ended up returning to obsolete models 

President Klaus Iohannis criticized on Monday the Cabinet's management of the education situation and complained about the return of "obsolete models", such as the single manual. The President also warned about the growing number of functionally illiterates coming out of Romanian schools.

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