News

Daily Newsletter - 18 May 2017

Summary

Macroeconomic News (4)

Automotive sector is main exports drive (Source: zf.ro; Date: 2017-05-17; Author: Unspecified)

Car exports, not including spare parts, accounts for a fifth of Romania's exports. Coal exports plunged 96%, while the foreign sales of electric equipment jumped almost 20%. The aggregated value of 2016 exports was EUR 57.4 billion, up 5% year-on-year.

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The price of spectacular growth (Source: cursdeguvernare.ro; Date: 2017-05-17; Author: Unspecified)

The higher than expected GDP growth rate reported for the first quarter of this year has analysts worried about sustainability, especially given the deteriorating trade balance. The currency and the state budget's deficit are expected to suffer.

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Senators summon INS heads to explain GDP report (Source: bursa.ro; Date: 2017-05-17; Author: Unspecified)

The Senate's Budget and Finance Commission decided yesterday to summon the heads of the INS to present the raw economic growth data for the first quarter of this year. "There's a discrepancy between the INS figures and those coming from BNR, IMF and the European Commission regarding the first quarter," said Senator Florin Citu (PNL).

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Most Romanian companies active (Source: profit.ro; Date: 2017-05-17; Author: Unspecified)

1.4 million companies are registered in Romania, 1.2 million of which are active. The reminder are being disbanded, liquidated or deleted from the national registry, according to Valentina Burdescu, head of the National Office of the Trade Registry (ONRC).

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Financial News (4)

UniCredit Bank implements digital fingerprint scanning tech (Source: zf.ro; Date: 2017-05-17; Author: Unspecified)

UniCredit Bank is implementing the digital fingerprint scanning technologies for payments of up to RON 800 and is offering clients more interest on deposits opened via digital means. The new technology is available on compatible smartphones.

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Oprescu (ARB): Financial education could become mandatory (Source: agerpres.ro; Date: 2017-05-17; Author: Unspecified)

Increasing the population's financial education level could be helped by making Financial Education mandatory in schools, according to ARB head Sergiu Oprescu.

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EIB finances BCR, Raiffeisen and ProCredit's SME loans (Source: bursa.ro; Date: 2017-05-17; Author: Unspecified)

The European Investment Bank signed on Wednesday in Brussels the first three contracts of the SME Initiative program with BCR, Raiffeisen and ProCredit. The contracts could see EUR 246 million made available to Romanian SMEs, close to half of the project's budget, according to the European Commission.

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Bankers want state guarantees for SME loans (Source: profit.ro; Date: 2017-05-17; Author: Unspecified)

The banks want state guarantees in order to finance small and medium-sized enterprises. 80% of Romanian SMEs have never had access to bank loans because they lack adequate collateral or capital. While bankers are more cautious and selective, SMEs also prefer to avoid the banks and use their own resources.

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Investment News (1)

Romcarton building plant outside Bucharest (Source: profit.ro; Date: 2017-05-17; Author: Unspecified)

Romcarton, a member of the Rossmann group, has secured a EUR 23.4 million loan from BCR in order to build a corrugated cardboard plant in the Ilfov county. The project will be completed by the end of this year at a total cost of EUR 27.5 million.

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Legislative News (1)

Labor union to take matter to Parliament (Source: news.ro; Date: 2017-05-17; Author: Unspecified)

Vasile Marica, leader of the Sed Lex union, stated at the end of a five-hour negotiation marathon that the union has the backing of the Minister of Finance on the payroll bill subject. However, Marica noted that "the Parliament rules" and that he would take the matter to the Parliament.

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Politics (2)

Ponta: Grindeanu has spoken like a true prime minister (Source: agerpres.ro; Date: 2017-05-17; Author: Unspecified)

Former prime minister Victor Ponta praised PM Grindeanu's statements about his former cabinet and said the government should not be undermined "because it's not obedient enough".

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Ludovic Orban vs. Cristian Busoi (Source: romanialibera.ro; Date: 2017-05-17; Author: Unspecified)

Ludovic Orban seems to have the advantage as the competition for PNL president is getting underway, but Cristian Busoi's allies are hoping to close the gap by the June 17 congress. The two candidates filed their paperwork yesterday.

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Social (1)

EC wants Romania to step up refugee admittance (Source: cursdeguvernare.ro; Date: 2017-05-17; Author: Unspecified)

The European Commission mentioned Romania among the member states it urged to step up the admittance of refugees, according to the quotas set in September, 2015. However, the EC noted that Romania is preparing to accept refugees directly from Turkey, based on the agreement between the European Union and Turkey.

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