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Daily Newsletter - 17 July 2017

Summary

Macroeconomic News (4)

IT and automotive hurt by labor shortage 

The IT, service centers, automotive and retail sectors are bearing the brunt of the labor shortage, according to Sorina Donisa, CEO of recruitment company APT. "Labor demand matches the trend of the industries that flourished in Romania," said Donisa.

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Foreign debt up EUR 1.87 billion 

Romania's foreign debt, which includes both public and private borrowing, increased by EUR 1.87 billion in the first five months of this year, reaching a total of EUR 94.2 billion, according to the National Bank of Romania (BNR). The foreign debt figure is drawing close to the December, 2014 high of EUR 94.7 billion.

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Presidential adviser calls for stability and predictability 

"No matter how ambitious, no governing program can toy with the economy's need for stability and predictability. For instance, despite the record economic growth in the first quarter and despite the consumption boom, the budget shows a serious lag in tax collection," wrote presidential adviser Cosmin Marinescu on his blog.

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Foreign companies invested EUR 1.44 billion in Romania January-May 

Foreign companies made direct investments worth a combined EUR 1.44 billion in Romania in the first five months of this year, down 12.6% on an annual basis, according to data published on Friday by the National Bank of Romania (BNR). On the other hand, Romania's foreign debt surged by EUR 1.87 billion this year.

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Financial News (3)

UniCredit to issue bonds worth RON 500 million 

UniCredit will launch a bonds issue worth RON 500 million on the Romanian market. The issue will be available only to qualified investors. The bonds will sell at RON 10,000 each and will mature in 3, 5 and 7 years. The interest rate ranges from 0.6% to 1.1% per year, plus the 6-month ROBOR rate.

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Romanian Post tries banking again 

The Romanian Post (CNPR) wants to diversify the portfolio of services provided to clients with the introduction of banking instruments. The company has called for proposals from the commercial banks in order to select a banking partner.

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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. However, the ROE had dropped from 17.3% in September, 2016.

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Investment News (3)

Leroy Merlin to step up expansion 

Leroy Merlin, a retailer of construction materials and interior decorations, wants to step up its local expansion. The chain's aim is to pass 30 stores within the next 5 to 10 years, according to CEO Frederic Lamy. Two new stores are scheduled to open in Bucharest before the end of 2018.

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Mohammad Murad to open Phoenicia Royal hotel on Tuesday 

"This is the first five-star hotel built this year on the Romanian coast and one of the handful of five-star hotels in the country's seaside resorts. We invested EUR 7 million in this project," said Phoenicia representatives. The chain operates seven hotels on the Romanian coast and is planning to open four more next year.

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Dow Chemical considers local investment 

US giant Dow Chemical is considering the opening of a polyurethane plant in Romania. The company is already operating a service center for such products, located in Codlea, Brasov county.

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Politics (1)

Raeţchi (PNL): The PSD government is a disaster for the sectors that could support Romania's development 

"The PSD government has not done anything for those elements that ensure a country's development. We have no infrastructure investment. We see nothing significant in highway construction. All major projects were postponed in order to wait for some mythical development fund," said Deputy Ovidiu Raeţchi (PNL).

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