News

Daily Newsletter - 4 August 2017

Summary

Macroeconomic News (5)

Retail turnover up 7.8% in H1 

The retail sector reported a 7.8% increase in turnover for the first half of this year, according to figures released by the National Statistics Institute (INS) on Thursday. The retail turnover figures do not include automotive sales.

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Cigarette smuggling down 1.3 pp 

The estimated level of cigarette smuggling dropped 1.3 percentage points in the first half of this year, down to 15.5%. Romanian authorities seized 75 million contraband cigarettes worth RON 45 million, according to data centralized by BAT's Stop Smuggling campaign.

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CC and ANRE to look into electricity prices 

The Ministry of Energy announced on Thursday that market signs pointing to a possible collusion case had been sent to the Competition Council. The announcement was triggered by a spike in the spot market electricity prices.

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Government sends letter of intent 

Prime Minister Mihai Tudose met on Thursday with representatives of Bell Helicopter. The Minister of Defense, Adrian Tutuianu, signed a letter of intent stating that Romania is willing to buy attack helicopters from BH, provided that they are made in Romania. The US company supports this initiative.

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Isarescu's new discussion partners 

   Cristian Hostiuc wrote an analysis of the Romanian economy based on  the idea that the national economy does not join the Eurozone in the next 10 years. The journalist thinks that salaries should grow faster, an opinion at odds with CRD's.

Financial News (3)

MFP borrowed RON 500 million 

The Ministry of Finance (MFP) sold yesterday a RON 500 million issue of bonds. The bonds mature in 39 months and carry an average yield of 1.88% per year. The banks offered a total of RON 2.2 billion.

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Romania accounted for 9% of CEE real estate deals 

The number of Central and Eastern European real estate transactions jumped 10% in the first six months of this year, reaching EUR 5.6 billion. Romania accounted for 9% of the total, according to the CEE Investment Market report released by real estate consulting firm JLL.

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Cabinet eyes banks 

The Minister of Finance, Ionut Misa, has recently complained about the fiscal optimization that banks engage in. According to the Minister, only 15 of the 46 banks operating in Romania paid profit tax in the past five years.

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Investment News (4)

Aggregated value of BVB trades up 22% in July, compared to the previous month 

The aggregated value of BVB trades surged 22% in July, compared to the previous month, and 186%, compared to the corresponding month of 2016. Bonds were the stars of the local market, especially UniCredit's. "The dividend season was followed by the bond season. There will be more issues," said BVB CEO Ludwik Sobolewski.

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Teraplast acquires full control of Politub 

Politub, a manufacturer of tubes and pipes, will be fully owned by Teraplast, following the buying out of French company Socotub. Teraplast will hold 99.99% of Politub, with the reminder being held by Terasteel.

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Chimcomplex and White Tiger locked in fierce combat 

The bids sent in by Chimcomplex Borzesti and investment fund White Tiger are the only ones considered for the acquisition of Oltchim Ramnicu Valcea, according to sources close to the negotiations. "The two bids are worth more than EUR 100 million each," noted a source.

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Dutch economic mission visits Iasi 

The mayor of Iasi, Mihai Chirica, met on August 3 with the executive director of the Dutch Chamber of Commerce in Romania, Maurits Dohmen. The two officials discussed the cooperation between the local authorities and the business community. The Dutch Chamber of Commerce is a member of the Coalition for Romania's Development.


Legislative News (1)

ANAF prepares to tax NATO allies 

ANAF launched on Thursday a public discussion regarding the procedure which should be used to calculate the taxes owed to the Romanian state by the members of the Allied Forces Commands.

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