News

Daily Newsletter - 14 July 2017

Summary

Macroeconomic News (4)

Ministry of Health working on drug strategy 

Representatives of the Ministry of Health, Ministry of Finance and the National Health Insurance House (CNAS) are working on a strategy regarding the drug market and the importers, according to the Ministry of Health. The announcement came after the producers of OTC drugs warned that 2,300 drugs could vanish from the local market because of the clawback tax.

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Automotive turnover up 

The combined turnovers of car dealerships jumped 18.4% in May, compared to the correspond month of 2015, while the retail market services turnover surged 15.5%, according to a press release from the National Statistics Institute (INS).

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Infrastructure and non-residential construction activity continues to shrink 

Construction works plunged 16.7% in May, year-on-year, the fifth consecutive month of contraction. The rout was led by the infrastructure and non-residential construction works, even as residential construction continued to grow at a fast pace.

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Romanian public administration's liabilities are 45% of GDP 

The financial commitments of Romania's public administration amounted to 45.2% of the GDP at the end of Q2, 2017, according to the financial accounts report released by the National Bank of Romania (BNR).

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Financial News (4)

Local banks most lucrative in EU 

The banks operating in Romania are the most lucrative in the European Union, with a 15.6% ROE at the end of Q1, twice above the EU average, according to the European Banking Authority. The top three players of the national market - BCR, Banca Transilvania and BRD SocGen - accounted for two thirds of the system's earnings. 26 banks logged profits for the first quarter, while 11 lost money, according to BNR.

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FGDB's situation 

The Bank Deposit Guarantee Fund (FGDB) had RON 5.9 billion in intervention resources at the end of last year. The funds are used to guarantee RON 158.6 billion worth of deposits.

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Alpha Bank Romania will remain moderately profitable in 12-18 months 

Moody's expects Alpha Bank Romania to remain moderately profitable in the next 12-18 months, following a drop in provisions and in the pressure felt by the net revenue from interest, according to a report released by the rating agency. Alpha Bank is the first local bank owned by Greek interests to get a rating from an international agency.

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Patria Bank shares listed with new symbol 

Patria Bank shares are now available for trade, following the completion of the BVB procedure for changing the bank's symbol from BCC (formerly held by Banca Comerciala Romana) to PBK. The bank will continue to restructure and reorganize and it expects to turn a profit in the fourth quarter of this year.

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Legislative News (1)

Cabinet issues new bill regarding former country leaders' benefits 

The Cabinet issued on Thursday a bill that would grant medical services to former country leaders, current leaders and foreign officials visiting Romania.

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Politics (1)

Iohannis: "One cannot evaluate a Cabinet's activity only days into its first term" 

"One cannot evaluate a Cabinet's activity only days into its first term. Let's give them a chance to work and then we'll see if we should appreciate their efforts or not," said President Klaus Iohannis during a speech held on Thursday at the Mihail Kogalniceanu Air Base.

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