News

Daily Newsletter - 13 June 2017

Summary

Macroeconomic News (4)

Inflation rate stagnated in May (Source: news.ro; Date: 2017-06-12; Author: Unspecified)

The annual inflation rate stagnated at 0.6% in May, a two-year high. The price of food increased significantly compared to April, as the market was flooded with vegetables and fruit belonging to the new harvest, according to data released on Monday by the National Statistic Institute (INS).

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Exports up 9% in four months (Source: bursa.ro; Date: 2017-06-12; Author: Unspecified)

FOB exports amounted to EUR 20 billion in the first four months of this year, while CIF imports reached EUR 23 billion, according to a press release from the National Statistics Institute (INS). The trade deficit was EUR 3.3 billion, up EUR 568 million year-on-year.

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Erste revises economic growth forecast (Source: profit.ro; Date: 2017-06-12; Author: Unspecified)

Erste Group sees an economic growth rate of 5.1% for Romania this year, very close to the Government's estimates, and 3.9% in 2018 (up from 2.8%). The revision was prompted by the good first quarter figures. Consumption will remain the main growth drive.

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Egypt to buy 120,000 tons of wheat from Romania (Source: zf.ro; Date: 2017-06-12; Author: Unspecified)

Egypt's General Authority For Supply Commodities organized an auction on Saturday and Romanian suppliers landed contracts for approximately 120,000 tons of wheat. While the wheat is scheduled to be loaded into ships between July 10 and 12, there's still some uncertainty about Egypt's policy regarding the legal levels of rye ergot fungus.

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Financial News (4)

Prima Casa budget to increase this week (Source: zf.ro; Date: 2017-06-12; Author: Unspecified)

The Ministry of Finance is expected to increase the Prima Casa program's budget by around RON 500 million this week. Around 500 Romanians are applying for Prima Casa loans every day, a new record.

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Mircea Cosea: "BNR's place and role will shrink significantly after the Eurozone accession" (Source: bursa.ro; Date: 2017-06-12; Author: Unspecified)

BNR's place and role will shrink significantly after the Eurozone accession, according to professor Mircea Cosea, a doctor in economy. Cosea noted that the National Bank of Romania (BNR) would lose almost every one of its current activities, which would be taken over by the European Central Bank.

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Romanian houses: old, crowded, cold (Source: profit.ro; Date: 2017-06-12; Author: Unspecified)

The clients of the two S&L banks operating in Romania are facing major problems regarding the quality of their houses. The most frequent complaints focus on the age of houses, the lack of repairs, insufficient light and ever present cold, according to a survey conducted by IRSOP and commissioned by industry group ABDLR.

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BCR loses another lawsuit (Source: adevarul.ro; Date: 2017-06-12; Author: Unspecified)

The magistrates of the Third District Court (Bucharest) declared abusive the terms of a loan contract regarding the loan granting fee, administration fee and risk monitoring fee. The bank in question, BCR, was ordered to return these fees to its clients.

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Investment News (1)

Construction of Iasi Regional Emergency Hospital to begin in 2019 (Source: news.ro; Date: 2017-06-12; Author: Unspecified)

The construction of the Iasi Regional Emergency Hospital will begin in 2019 and the hospital is scheduled for completion in 2023, according to secretary of state Cristian Vasile Grasu. The official met with Iasi mayor Mihai Chirica, the heads of UMF Iasi and other mayors of towns and communes located within the city's metropolitan area.

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Legislative News (2)

New MTPL law to come into force mid-July (Source: profit.ro; Date: 2017-06-12; Author: Unspecified)

The new MTPL rules will replace the maximum price with a reference price that would be calculated by the Financial Supervisory Authority (ASF). The MTPL law was signed at the end of May and will come into force 30 days after its publication in the Official Gazette.

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CSM urges President to send payroll law back (Source: cursdeguvernare.ro; Date: 2017-06-12; Author: Unspecified)

The Superior Council of Magistrates voted on Monday to send President Iohannis a letter urging him to send the unified payroll bill back to the Parliament with a request to review. The prosecutors are unhappy with the new payroll system, which would bring their salaries below those earned by judges.

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Politics (1)

Trump: "He has a brilliant future" (Source: adevarul.ro; Date: 2017-06-12; Author: Unspecified)

President Klaus Iohannis scored a personal victory in the USA, as Donald Trump declared him the guarantor of the fight against corruption. From the national point of view, Romania was assured that the USA would intervene in the case of Russian aggression.

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Social (1)

Birth rates continue to fall (Source: news.ro; Date: 2017-06-12; Author: Unspecified)

Romania's population continued to decline, losing 8,376 people in April, the equivalent of three average communes, according to data released on Monday by the National Statistics Institute (INS). The annualized negative population increase was up 43%.

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