News

Daily Newsletter - 14 June 2017

Summary

FIC (1)

Foreign investment up 24% in January-April 

The investments made by foreign companies in Romania reached EUR 1.3 billion in the first four months of this year, up 24% year-on-year. FIC has recently published a report stating that 1.2 million Romanians are working for foreign companies.

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Macroeconomic News (4)

Romania reached 59% of EU average purchasing power 

The purchasing power of Romanians has increased to 59% of the EU average and 63% of the European average individual consumption, the second to last position in the index published by Eurostat on Tuesday.

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Minister says EU fund absorption to reach 9% 

The Delegate Minister for European Funds, Rovana Plumb, stated on Tuesday that the estimated absorption rate for this year is 9%. Romania was allocated EUR 33 billion from the 2014-2020 budget, EUR 23 billion of which are structural and cohesion funds.

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Romania's foreign debt up approximately EUR 1.71 billion in four months 

Romania's foreign debt increased by approximately EUR 1.71 billion in the first four months of this year, compared to the figure posted at the end of 2016, according to data released by the National Bank of Romania (BNR). The EUR 94 billion figure is the highest debt level since December, 2014.

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Current account deficit up 56% 

The current account of the balance of payments was EUR 1.41 billion in the red at the end of April, up 56.3% compared to the first four months of 2016, according to a press release issued by the National Bank of Romania (BNR). The non-residents' direct investment amounted to EUR 1.3 billion.

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Financial News (4)

Western Romania leads overdue debt index 

People living in Western Romania are 820 days overdue on their debts, on average, the highest figure in the country. The second place went to the South-West Oltenia region with 767 days, followed by Bucharest-Ilfov with 731 days, according to a study by APS Romania.

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Erste/BCR's new forecast 

RON-denominated borrowing is growing fast, spurred by low interest rates and the Prima Casa program, while inflationary pressure is still low, according to Erste/BCR analysts. As a result, the National Bank of Romania (BNR) is expected to keep the key interest rate at 1.75% until 2018.

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Daianu says Romania not ready for Eurozone accession 

Romania is not ready to join the Eurozone and those who say that we should accept an invitation are engaging in simplistic thinking and fail to understand the problems Romania would be facing, according to Daniel Daianu, a member of the National Bank of Romania's (BNR) board.

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Clients say banks pushing new abusive terms 

The clients who are negotiating conversions of their CHF-denominated loans with the commercial banks say the banks are trying a new tactic. According to some of these clients, the banks included in the addenda to the original contracts a clause stating that, by accepting the conversion offer, the clients waive their rights to "any legal actions" against the bank, "present or future, direct or indirect".

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Investment News (2)

Prysmian opens biggest fiber optics cables plant in Europe 

Prysmian opened yesterday in Slatina its biggest fiber optics cable plant in Europe. The EUR 25 million plant uses the most advanced industrial technologies and know-how and it is located in the Slatina Milcov industrial park. The group had bought 40% of the park in 2015.

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Engie to invest EUR 50 million this year in Romania 

Engie Romania, one of the two major suppliers of natural gas in the country, is planning to invest a total of EUR 50 million this year in the modernization of existing gas pipes and the construction of new ones, according to president and CEO Eric Stab.

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Legislative News (1)

Apprenticeship bill passed 

The Chamber of Deputies passed on Tuesday the bill stipulating that employers who sign apprenticeship contracts will be paid RON 1,125 per month, upon request. The funds will be allocated from the unemployment security budget.

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Politics (2)

Ponta backs Cabinet 

Former prime minister Victor Ponta stated on Tuesday that the Social Democrats should not embarrass themselves by sacking their own Cabinet. He added that the Cabinet is the Cabinet of Romania, not Teleorman county, an obvious dig to party leader Liviu Dragnea.

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President Iohannis in string of high level visits 

President Klaus Iohannis will receive his Luxembourg counterpart, Xavier Bettel, on Friday, at the Cotroceni Palace, before going to Berlin to meet with Angela Merkel and to Brussels to meet with President Emmanuel Macron.

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