News

Daily Newsletter - 22 May 2017

Summary

Macroeconomic News (4)

Romania has USD 868 million and RUB 1.4 billion to recover (Source: economica.net; Date: 2017-05-21; Author: Unspecified)

The state had USD 868 million and RUB 1.4 billion (convertible) to recover, "arising from the export operations, international economic cooperation and other foreign actions undertaken before December 31, 1989," according to a report released by the Ministry of Finance. 13 countries owe Romania money.

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Listed companies see record market value (Source: zf.ro; Date: 2017-05-21; Author: Unspecified)

The market value of the Romanian companies listed on the Bucharest Stock Exchange (BVB) reached EUR 20.4 billion last week, a nine-year high, following the listing of DIGI Communications, a major provider of telecommunications services in Romania and Hungary.

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Jiru, MFP: "Romania needs RON 69 billion" (Source: bursa.ro; Date: 2017-05-21; Author: Unspecified)

Romania needs RON 55 billion this year to refinance old debts and another RON 24 billion to cover the budget deficit. The total sum accounts for 8.4% of this year's GDP, according to a speech delivered by secretary of state Enache Jiru at the OECD conference organized by ELEC Romania and Finmedia.

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Eastern Europe's economic growth pace to fall (Source: cursdeguvernare.ro; Date: 2017-05-21; Author: Unspecified)

The Central and Eastern European economies are running near their potential and policy makers are increasingly on alert as inflation comes back. Capital Economics Ltd analysts warned that the region's growth pace could fall. "The 'Goldilocks' period of strong growth accompanied by low inflation which the region has enjoyed in recent years is now coming to an end," said Liam Carson, an analyst at Capital Economics in London. "It looks like 2017 could be the peak year for growth in Poland, Hungary and Romania."

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Financial News (4)

Prima Casa guaranteed EUR 4 billion in loans (Source: capital.ro; Date: 2017-05-21; Author: Unspecified)

The Prima Casa program will continue to drive the real estate market this year. The guarantee budget will be the same as last year's, but the state wants to encourage the commercial banks to come up with competitive products of their own. The elimination of VAT on real estate deals is waiting for the EC's approval.

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Governor Isarescu, BNR, spoke at OECD conference (Source: bursa.ro; Date: 2017-05-21; Author: Unspecified)

"The standards and good practices set by the OECD are a significant point of reference for the National Bank of Romania (BNR), one that BNR is constantly measuring itself against," said Governor Mugur Isarescu at an OECD conference held yesterday.

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Young generations lack financial education (Source: zf.ro; Date: 2017-05-21; Author: Unspecified)

"Young people should think that they will no longer be young at some point," said Ludwik Sobolewski, CEO of the Bucharest Stock Exchange (BVB). Financial education is a hot topic these days, and the big players of the finance sector are working on education awareness projects.

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Prima Casa bad loans (Source: economica.net; Date: 2017-05-21; Author: Unspecified)

The SME Loan Guarantee Fund (FGCIMM) has announced that the number of foreclosures had increased from 427 last June to 561 this month. At 0.4%, the default rate is still very low, but growing. Foreclosures have yielded less than 10% of the guarantee value.

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Investment News (2)

Skanska to complete first office building of new ensemble in Q3 (Source: news.ro; Date: 2017-05-21; Author: Unspecified)

Swedish developer Skanska announced that it would complete the first office building of the Campus 6 project, located close to the Polytechnic University, in the third quarter of this year. The construction cost of the first building was estimated at EUR 38 million.

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World Bank completes Esplanada blueprints (Source: profit.ro; Date: 2017-05-21; Author: Unspecified)

The World Bank has completed and sent to the Romanian authorities the general plan for the Esplanada real estate project, which is supposed to include the future Justice District. The Government must decide whether to relocate other state institutions to the district and is also looking for financing sources.

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Legislative News (1)

Retailers and producers must donate or sell cheaply goods three days away from expiry date (Source: profit.ro; Date: 2017-05-21; Author: Unspecified)

The retailers and producers that fail to sell food that's three days away from the expiry date, must donate it to the humanitarian associations or city halls. The food must be used to support the poor. Alternatively, the retailers and producers can sell the food to social companies at slightly more than 3% of the price.

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Politics (1)

Liviu Dragnea drops cabinet reshuffling (Source: news.ro; Date: 2017-05-21; Author: Unspecified)

Liviu Dragnea is now happy with all ministers and no longer interested in the cabinet reshuffling that seemed imminent only a couple of days ago. However, the PSD leader warned that he would not hesitate to act in the future, should he find that some ministries need a wake up call.

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Social (1)

Romania ranks 35th in LGBT tolerance index (Source: cursdeguvernare.ro; Date: 2017-05-21; Author: Unspecified)

Romania ranks 35th out of 49 European countries in the LGBT tolerance index, according to the International Lesbian, Gay, Bisexual, Trans and Intersex Association (ILGA-Europe).

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