News

Daily Newsletter - 2 May 2017

Summary

FIC (1)

Go East - Interview with Eric Stab

Eric Stab started his career in Germany and has been in charge of Engie's Romanian operations since 2008. Stab is also president of the Foreign Investors Council, a position that he calls "a privilege".

Always towards east  (Source: BUSINESS MAGAZIN)

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Macroeconomic News (5)

The Romanian paradox 

"We need a country project for infrastructure. The money should be spent on 2-3 projects, not 6,000," said Ion Lixandru, CEO of Romtrailer and vice president of the National Union of Road Hauliers from Romania (UNTRR). While the state spent EUR 6.5 billion on investment projects last year, not even one kilometer of new road was delivered.

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Romanian managers expect increase in business in all sectors 

The CEOs of Romanian companies expect to see activity increases in the industry, construction, services and retail sectors between April and June. Prices are also expected to move up in retail and construction, according to data released on Friday by the INS.

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Number of housing construction permits up 4.5% this month 

The number of housing construction permits dropped 5.7% in February, compared to the corresponding month of 2016 and coming on the heels of a 9.2% increase in January. The number of permits issued in the first quarter of this year was up 1.9% on an annual basis.

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Economy heading for severe labor shortage 

The number of employees and their training levels will continue to fall in the future, according to a KeysFin survey, based on statistical labor data. "The Romanian economy is heading for a severe labor shortage," noted the report.

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MFP to borrow RON 4.1 billion this month 

The Ministry of Finance has RON 4.1 billion worth of loans scheduled for May. The funds will cover the state's expenses, mainly salaries and social security, and finance the public debt.

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Financial News (4)

Cash withdrawals become free for basic accounts 

The National Consumer Protection Authority (ANPC) has released the final version of its checking accounts bill. The bill would remove all fees for opening and closing of checking accounts, as well as cash withdrawals within the European Union for the holders of basic accounts.

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"BNR continues to act as a defender of the commercial banks" 

The National Bank of Romania (BNR) continues to act as a defender of the commercial banks, according to members of debtor group GCCC. Their reaction was caused by the statements made on Wednesday by a series of BNR officials: Governor Mugur Isarescu, chief economist Valentin Lazea and strategy adviser Adrian Vasilescu.

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Banca Carpatica merged with Patria Bank 

The merger between Banca Comerciala Carpatica and Patria Bank became effective on May 1, after a delay of several months. The actual implementation of the merger involves a series of complex processes that would cause temporary suspensions of some services.

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BNR: NPL rate down in February 

The NPL rate dropped to 9.58% in February, down 3.98 pp compared to the corresponding month of 2016 and down 0.17 pp from the previous month, according to the National Bank of Romania (BNR). This year's target is a 6% NPL rate, which is the EU average.

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Investment News (1)

CNLR has RON 63.7 million investment budget 

The Romanian Lottery National Company (CNLR), which is controlled by the Ministry of Finance, has a RON 63.7 million investment budget for this year, out of a total of RON 925.4 million in revenues, according to the draft budget released for public debate.

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Politics (2)

PSD raised almost RON 15 million last year in membership dues 

The Social Democratic Party (PSD) raised almost RON 15 million in membership dues last year. 30 MPs and 10 MEPs paid more than ten gross salaries each in dues. The top contributors are Hunedoara county MPs: Senator Cornel-Cristian Resmerita (RON 56,500) and deputies Laurenţiu Nistor (RON 56,800), Natalia Intotero (RON 55,800) and Ilie Toma (RON 50,000).

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PSD and PNL join hands to remove Negritoiu 

Liviu Dragnea is preparing to remove Misu Negritoiu, president of the Financial Supervisory Authority (ASF), with the votes of the National Liberal Party (PNL). Coalition partner ALDE had thrown its support behind Negritoiu and attempted to protect him. However, PNL was offered a BNR deputy governorship.

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