News

Daily Newsletter - 19 July 2017

Summary

Macroeconomic News (3)

Tudose promises no investment funding cuts 

The budget adjustment will bring more money to certain ministries without sacrificing investment funding, according to statements made by Prime Minister Mihai Tudose on Tuesday, after a meeting with tourism employers in Mamaia.

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Romania had third lowest inflation in EU 

At 0.7% per year, Romania had third lowest annual inflation rate in the European Union in June, according to data released on Monday by Eurostat. The lowest inflation rates were reported by Ireland (-0.6%) and Denmark (0.4%).

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Bloomberg: Fast pay growth undermines Romania's competitiveness 

Romanians may not have long to bask in the European Union's biggest pay rises. The government's quest to boost public salaries and the minimum wage is also dragging up compensation for private workers. With productivity failing to keep pace, the consequence is a hit to competitiveness. That's bad news for inflation and economic growth, according to Lucian Croitoru, a monetary-policy adviser to central bank Governor Mugur Isarescu.

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Financial News (4)

UniCredit SpA sells EUR 17.7 billion worth of NPLs 

UniCredit SpA has inked a deal with Pimco and Fortress regarding the selling of EUR 17.7 billion worth of NPLs. This is the biggest such transaction so far in Italy.

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Piraeus Bank CEO: "Will sell the Romanian, Bulgarian and Serbian subsidiaries" 

Piraeus Bank has made it its target to reduce its exposure to the Romanian, Bulgarian and Serbian subsidiaries, as well as to the Greek non-banking assets that do not belong in the core assets category, according to CEO Christos Megalou.

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Raiffeisen launches second yield fund 

Raiffeisen Asset Management, the second biggest player of the national market, is preparing to launch Raiffeisen Benefit Euro, an absolute yield fund, in response to a market featuring low interest rates and surging stocks. Access to the new fund is free of charge until August 4.

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CEC Bank, APIA ink deal 

CEC Bank announced yesterday the signing of a partnership with the Agriculture Payment and Intervention Agency (APIA). The bank will loan money to farmers who receive subsidies for the 2017 campaign (SAPS, the redistributive subsidy, the greening subsidy, the rural development compensatory measures).

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Investment News (2)

Impact to build new residential project 

Impact Developer & Contractor, the oldest private real estate developer in Romania, announced on Tuesday it would build a new residential project in Bucharest's Domenii neighborhood. The 600-flat project will be built on a 22,000 sqm property bought for EUR 10.6 million.

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Blue Point opens new call-center 

Blue Point, a local company specializing in call-center services, has opened its second center outside Bucharest. The new unit is located in Buzau and the investment was paid for using the company's profits and the partners' own money. The company expects to recoup the investment in two years.

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Politics (2)

PM Tudose says he doesn't want "western movie strategy" 

"In the past two weeks, I kept waiting for the former ANAF leadership to come up with some measure that would push the system toward a certain kind of fiscal and financial discipline, which I had called for from day one," said Prime Minister Tudose.

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Klaus Iohannis shrugs off provocation 

President Klaus Iohannis came face to face with Romania's ethnic issues during his visit to the Harghita and Covasna counties. The President attended a debate organized by the representatives of the two counties' public administration. The debate began with the singing of the Romanian and Szekler Land anthems.

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