News

Daily Newsletter - 3 May 2017

Summary

Macroeconomic News (5)

Manufacturing prices up 3.9% year-on-year (Source: profit.ro; Date: 2017-05-02; Author: Unspecified)

In March, manufacturing prices climbed 0.3% on a monthly basis and 3.9% on an annual basis, according to the National Statistics Institute (INS). The highest price hikes were reported for computers, electronics and optical wares (2.7%) and metallurgical goods (2.6%).

Top

Labour statistics: 3 million full time contracts in private sector and 1.2 million employees in public sector. Almost 2 million minimum national wages (Source: cursdeguvernare.ro; Date: 2017-05-02; Author: Unspecified)

At the end of 2016, there were 4,763 million employees in Romania with permanent, full-time contracts, according to the data from the Ministry of Labour. If the expanding employment pace maintains, in 2017 we will reach the record of the last 18 years, registered in July 2008 – 4,833 million employees. Even with this record level, Romania remains though, by far, the EU country with the lowest share of employees in the total population and the active population. According to the Ministry of Labour data (collected from the REVISAL system), there were 5,761 permanent contracts in December last year, of which 4,763,323 were full-time.

Top

Job creators can apply for government funding (Source: news.ro; Date: 2017-05-02; Author: Unspecified)

The Ministry of Finance announced on Tuesday that companies seeking funding for investment projects that promote regional development through job creation can apply between June 12 and 23. The total state aid budget for this year is RON 106.3 million.

Top

EBRD expects Romanian economy to slow down (Source: zf.ro; Date: 2017-05-02; Author: Unspecified)

The European Bank for Reconstruction and Development expects the Romanian economy to slow down in 2017 and 2018. However, the international institutions noted that Romania's economic growth rate should remain remarkable for the region.

Top

ANAF reports 2.7% increase in collection rate (Source: bursa.ro; Date: 2017-05-02; Author: Unspecified)

Gelu Diaconu, a former head of ANAF, stated that, given the revenue collection figures released by the Authority, there's no chance that this year's budget revenue target could be reached and that the Cabinet would have to resort to massive spending cuts in order to stay below the 3% deficit threshold.

Top

Financial News (4)

ROBOR surges to 15-month high (Source: cursdeguvernare.ro; Date: 2017-05-02; Author: Unspecified)

The 3-month ROBOR rate surged to 0.91% on Tuesday, the highest level since January 13, 2016, according to the National Bank of Romania (BNR). This spike confirms the reversal of the downward trend for interest rates.

Top

Romanians want cashless society (Source: adevarul.ro; Date: 2017-05-02; Author: Unspecified)

More than one in three Europeans (34%) would be happy to give up cash and Eastern European countries are even more in favor of a cashless economy (38%). 21% of Europeans say they rarely carry bills or coins, according to the ING International Survey.

Top

NPL rate down in February (Source: capital.ro; Date: 2017-05-02; Author: Unspecified)

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, according to BNR deputy governor Liviu Voinea.

Top

BNR's foreign currency reserves up (Source: bursa.ro; Date: 2017-05-02; Author: Unspecified)

The National Bank of Romania (BNR) reported that its foreign currency reserves stood at EUR 35.96 billion at the end of April, up from the previous month's EUR 34.69 billion.

Top

Investment News (1)

ArcelorMittal Galati invested EUR 6 million in production line modernization (Source: profit.ro; Date: 2017-05-02; Author: Unspecified)

ArcelorMittal Galati, the biggest steel mill in Romania, has invested EUR 6 million in the modernization of its zinc electroplating line. The project will allow the company to increase its output and provide new products that meet the market demand.

Top

Legislative News (1)

Bill threatens Proprietatea Fund and stock market (Source: zf.ro; Date: 2017-05-02; Author: Unspecified)

A bill circulating through the Parliament is a major threat to the Proprietatea Fund and the Romanian stock market. The bill would allow the state to seize all the Proprietatea Fund units obtained through fraudulent means, regardless of whether they are still in the hands of fraudsters or not. Under this bill, good faith buyers would have to recover their money from the fraudsters.

Top

Politics (1)

Iordache: The Parliament will not conduct criminal investigations (Source: news.ro; Date: 2017-05-02; Author: Unspecified)

Deputy Florin Iordache (PSD) stated on Tuesday that, while the Parliament would not conduct criminal investigations, magistrates should see parliamentary summons as mandatory.

Top

Social (1)

Misleading unemployment figures (Source: cursdeguvernare.ro; Date: 2017-05-02; Author: Unspecified)

The unemployment rate dropped to 5.3% in March, a five-year low, according to the National Statistics Institute (INS). The detailed data made available by the National Workforce Agency (ANOFM) for February also indicate a 4.71% unemployment rate, the lowest figure since June, 2012. There are however some problems with these figures.

Top