News

Daily Newsletter - 16 May 2017

Summary

Macroeconomic News (5)

MFP sold RON 342 million worth of bonds (Source: news.ro; Date: 2017-05-15; Author: Unspecified)

The Ministry of Finance sold on Monday RON 342.3 million worth of bonds maturing on July 26, 2027 at an average yield of 3.68%, according to the National Bank of Romania (BNR). The average yield is down significantly from the previous auction for such bonds.

Top

Half of Romania's natural gas production to be sold abroad (Source: economica.net; Date: 2017-05-15; Author: Unspecified)

Half of Romania's natural gas production will be sold abroad after the completion of the BRUA pipeline, according to Sorin Gal, a director with the National Mineral Resources Agency (ANRM). "We want to double our proven reserves in two years. Today we are extracting 11 million cubic meters per day. Another 6-7 million will come from the Black Sea and, I expect, the same amount from the onshore deep wells," said Gal.

Top

Foreign debt up 815 million in Q1 (Source: bursa.ro; Date: 2017-05-15; Author: Unspecified)

Romania's foreign debt jumped EUR 815 million compared to the end of 2016, reaching a total of EUR 93.19 billion. This is the highest figure since February, 2015, according to the National Bank of Romania (BNR).

Top

BNR revises inflation rate forecast downwards (Source: cursdeguvernare.ro; Date: 2017-05-15; Author: Unspecified)

The Government's fiscal and payroll policies are expansive and this could lead to an accelerated inflation growth period in the future, coupled with the ongoing deterioration of price competitiveness and the growth of imports, according to Mugur Isarescu, Governor of the National Bank of Romania (BNR).

Top

BNR expects economic growth rate to fall in Q1 (Source: zf.ro; Date: 2017-05-15; Author: Unspecified)

The National Bank of Romania's (BNR) board expects the first quarter economic growth rate to show a slightly drop, according to the minutes of the May 5 board meeting, which were released on Monday. The National Statistics Institute (INS) will publish the preliminary Q1 data this morning.

Top

Financial News (3)

Current account in red (Source: profit.ro; Date: 2017-05-15; Author: Unspecified)

The balance of payments showed a EUR 690 million deficit for the first quarter of this year, compared to EUR 314 million in the corresponding quarter of 2016, according to the National Bank of Romania (BNR). However, the trade balance's current account had been EUR 204 million in the black at the end of February.

Top

OTP Bank's Romanian earnings up 112% (Source: bursa.ro; Date: 2017-05-15; Author: Unspecified)

OTP Bank Romania reported a 112% increase in earnings for the first quarter of this year, compared to the corresponding period of 2016, according to data released on Friday by the bank's headquarters. The bank's operational profits amounted to EUR 9.5 million, up 43% year-on-year.

Top

BCC losses worsened in Q1 (Source: news.ro; Date: 2017-05-15; Author: Unspecified)

The former Banca Comerciala Carpatica posted a loss of RON 9.7 million for the first quarter of this year, up 27% from the previous quarter. The loss is partly the result of a slowdown in activity as BCC was preparing to merger with Patria Bank.

Top

Investment News (2)

Stihl Romania invests EUR 6 million in expanding its Otopeni location (Source: zf.ro; Date: 2017-05-15; Author: Unspecified)

The local division of German group Stihl, one of the world's biggest producers of chainsaws and brushcutters, will invest EUR 6 million in expanding its logistic and training space at the Otopeni facility. The project has already been launched and is scheduled to be completed next year.

Top

Foreign companies invested EUR 1 billion in Romania in Q1 (Source: profit.ro; Date: 2017-05-15; Author: Unspecified)

The value of foreign direct investment logged by the Romanian authorities for the first quarter of this year was slightly more than EUR 1 billion, down 22% year-on-year, according to the National Bank of Romania (BNR).

Top

Legislative News (1)

President sends bill back (Source: cursdeguvernare.ro; Date: 2017-05-15; Author: Unspecified)

President Klaus Iohannis sent back on Monday the bill amending and completing Law 188/1999 regulating public employees. The President's request to review was justified on grounds that the bill interferes with the National Public Employee Agency's charter.

Top

Politics (1)

Leon Danaila backs Busoi for PNL leader (Source: euractiv.ro; Date: 2017-05-15; Author: Unspecified)

Senator Leon Danaila (PNL) announced his support for Busoi as the next leader of the National Liberal Party. Dozens of party members gathered on Monday to be with Busoi for the official filing of his leadership bid, including Teodor Atanasiu, Dan Motreanu, Leon Danaila, Lucia Varga, Răzvan Sava, Florin Alexe, Marin Anton, Mugurel Cozmanciuc, Claudia Benchescu.

Top

Social (1)

MFP employees begin spontaneous protest (Source: economica.net; Date: 2017-05-15; Author: Unspecified)

More than 22,000 employees of the Ministry of Finance (MFP) stopped working on Monday morning. The spontaneous protest started in Bucharest and spread around the country. The employees are unhappy with the unified payroll bill because they expect it to slash their incomes.

Top