News

Daily Newsletter - 2 August 2019

Summary

Macroeconomic News (3)

PNDR 2020 beneficiaries can begin acquisition procedures before signing financing contract

The public beneficiaries of the 2014-2020 National Rural Development Program (PNDR) who had been selected for financing through the report published on the Rural Investment Financing Agency (AFIR) website can choose to begin the acquisition procedures before signing the actual financing contract with AFIR.

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Budget deficit heading for 4.5% of GDP

Ionut Dumitru, Chief-Economist of Raiffeisen Bank, has warned that the government needs to find around RON 10 billion in additional revenues in order to keep the budget deficit below 3% of the GDP. The new taxes announced so far and the budget revision are not enough to cover the deficit.

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Almost RON 6 billion cut from infrastructure, education and healthcare

The Cabinet will release the draft budget revision bill after the meeting of August 5. The revision is negative, as financial data point to a RON 20 billion deficit, the equivalent of 1.94% of the GDP. In order to stay below the 3% deficit cap, a number of ministries will see their budgets reduced, including Transport, Education and Health.

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Financial News (4)

Cabinet and Parliament in conflict over alternative resolution

The Cabinet opposes the amendments to the alternative dispute resolution system passed by the Parliament. The amendments would lead to the creation of a single resolution entity (SAL), which would operate under the National Consumer Protection Authority (ANPC).

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BRD posts RON 787 million in H1 earnings

BRD logged RON 787 million in earnings for the first half of this year, thanks in large part to a robust increase in revenues. The return on equity reached 20.9%, down from 21.6% in H1, 2018. The group's net revenues surged 8.7% to RON 1.6 billion.

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Raiffeisen Bank had more than 2 million retail clients in 2018

Raiffeisen Bank has released its tenth Sustainability Report, featuring the non-financial indicators and the performance indicators for 2018, from the point of view of sustainability and social responsibility.

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BNR reserves up

The National Bank of Romania (BNR) announced that its foreign currency reserves amounted to EUR 35.47 billion at the end of July, up from EUR 32.56 billion in June. The gold reserve stayed at 103.7 tons, worth EUR 4.28 billion at the current price of gold.

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Legislative News (1)

Corruption convicts allowed to set up companies

President Klaus Iohannis signed on Thursday the amendment to Act 31/1990, which allows individuals who received a final sentence on corruption charges to set up companies.

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Politics (2)

PM Dancila vows no cuts to incomes

Prime Minister Viorica Dancila said that the state budget revision would not lead to a reduction in incomes for Romanians. "We have considered a number of measures to be included in this revision and we have discussed the impact of each measure, taking into account that behind every figure are citizens," wrote the PM on her Facebook page.

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PLUS designates Vlad Voiculescu as candidate in Bucharest mayoral race

Vlad Voiculescu was designated as the Liberty, Union and Solidarity Party's (PLUS) candidate in next year's mayoral election in Bucharest. Voiculescu won 96.30% of the party vote to become the standard bearer.

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