News

Daily Newsletter - 29 May 2017

Summary

Macroeconomic News (4)

Government to continue fiscal relaxation program (Source: cursdeguvernare.ro; Date: 2017-05-28; Author: Unspecified)

The Government will slash next year the number of social security contributions from 9 to 2 (pensions and healthcare), as pledged by the governing program, according to the Minister of Finance. The aggregated social contribution rate will fall from 39.25% to 35%.

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Transylvanian counties reported highest growth rates last year (Source: profit.ro; Date: 2017-05-28; Author: Unspecified)

Maramures, Cluj and Alba, three counties from Transylvania, reported last year the biggest economic growth rates in Romania. The lowest growth rates came from Calarasi, Braila, Gorj and Salaj, according to the National Forecast Commission (CNP). The national economy grew 4.8% last year.

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"Fiscal relaxation measures could push the budget deficit to 6% by 2022" (Source: bursa.ro; Date: 2017-05-28; Author: Unspecified)

The fiscal relaxation measures featured in the Government's plan for 2017-2020, such as the unified payroll rules for state employees, the slashing of social contributions and the VAT, could push Romania's budget deficit to 6% of the GDP by 2022, according to a document drafted by the IMF.

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EC issues warning to Romania (Source: zf.ro; Date: 2017-05-28; Author: Unspecified)

The European Commission advised Romania to return to the structural deficit of 1% of GDP, which would involve a sharp drop from this year's 3% target deficit. "Based on the 2016 budget data, Romania is in a significant deviation from the medium-term budget target," noted the EC.

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Financial News (4)

NPL rate down in March (Source: economica.net; Date: 2017-05-28; Author: Unspecified)

The NPL rate dropped to 9.36% in March, down 0.22 pp month-on-month, according to data released by the National Bank of Romania (BNR). The annualized trend is -4.16 pp. Deputy BNR governor Liviu Voinea said this year's target NPL rate is 6%.

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More than 600 Prima Casa applications filed every day (Source: profit.ro; Date: 2017-05-28; Author: Unspecified)

The Prima Casa program has reached a new all-time high, as more than 600 applications pour in every day, according to the National Loan Guarantee Fund for SMEs (FNGCIMM). The fund's employees are working according to an extended schedule and will work through the June 1-5 mini-holiday.

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CFA Romania members see RON depreciation (Source: bursa.ro; Date: 2017-05-28; Author: Unspecified)

Most members of CFA Romania expect the national currency to depreciate in the next 12 months and the interest rates on RON-denominated loans to rise.

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BNR warns about rising real estate prices (Source: zf.ro; Date: 2017-05-28; Author: Unspecified)

The National Bank of Romania (BNR) has issued a warning about the risk of real estate price acceleration. The warning was included in the financial stability report presented yesterday by Liviu Voinea, deputy governor of BNR. "The 7% average growth rate in the past year exceeds the EC's 6% warning threshold," said Voinea.

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Investment News (1)

Rompetrol to spend USD 12 million on new gas stations (Source: news.ro; Date: 2017-05-28; Author: Unspecified)

Rompetrol Downstream, a company controlled by Kazakh group KazMunayGas, will spend USD 12 million this year on opening ten gas stations across the country. The company has already opened three stations and the rest will follow before the end of the year, according to CEO Vlad Rusnac.

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Legislative News (1)

President asks for review (Source: cursdeguvernare.ro; Date: 2017-05-28; Author: Unspecified)

President Klaus Iohannis sent the bill regarding the organization and operations of the Ministry of Defense (MApN) back to the Parliament on Friday morning, with a request to review.

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Politics (2)

Reshuffling is test for PSD (Source: romanialibera.ro; Date: 2017-05-28; Author: Unspecified)

Liviu Dragnea, president of the Social Democratic Party (PSD), wants to remove some Cabinet members, but Prime Minister Sorin Grindeanu does not seem very keen on following the orders of his party leader.

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Minister Dan says ruling coalition evaluation of ministers is normal (Source: adevarul.ro; Date: 2017-05-28; Author: Unspecified)

The Minister of Internal Affairs, Carmen Dan, stated on Sunday evening that it's normal to conduct an evaluation of the ministers' activity and the implementation of the governing platform.

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Social (2)

Romatsa heads fight to prevent strike (Source: news.ro; Date: 2017-05-28; Author: Unspecified)

Romatsa employees are planning to go on strike tomorrow, May 30. Romatsa is the air traffic control monopoly, operating under the Ministry of Transport's supervision. The management and the unions continued to negotiate over the weekend in an attempt to avoid the strike scheduled for May 30.

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Cartel Alfa to hold protest rally (Source: economica.net; Date: 2017-05-28; Author: Unspecified)

The Cartel Alfa labor confederation announced that a protest rally would be held on Tuesday, at 11 AM, before the Parliament. The confederation will protest against the PSD's unified payroll bill.

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