News

Daily Newsletter - 5 April 2017

Summary

Macroeconomic News (3)

EU funds boosted GDP by 14% and created 41,000 jobs 

The net effect of the absorption of EU funds between 2009 and 2016 was a 13.6% increase in the GDP (based on constant 2010 prices), according to representatives from the Ministry of Regional Development (MDRAPFE) and the National Forecast Commission (CNP).

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Deloitte says Romania bucked royalty trend 

The average effective royalty rate for the upstream part of the oil and gas sector increased by 2.5% in two years, rising from 15% in 2014 to 17.5% in 2016, according to a report released by consultancy firm Deloitte. The report noted that Romania had managed to go against the EU trend.

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Retail turnover fell to 4.8% in February 

The aggregated turnover of the retail sector moved up 4.8% in February, a drop from both the 6.4% reported for January and from the corresponding month of 2016, according to the National Statistics Institute (INS). The growth rate of December, 2016, was 7.2%.

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Financial News (4)

WeLoveDigital.forum 

A draft bill designed to implement a EU directive may force the banks to offer zero-fee accounts to Romanians who do not use banking services. Four out of every ten Romanians, mostly those living in rural regions, have no contact with the banks and are not interested in such a contact.

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CEC and EximBank presidents to remain in office 

The decree draft by the Ministry of Finance (MFP) for exempting the two state-owned banks, CEC Bank and EximBank, from having to appoint private managers was approved by the Cabinet. The two banks will be regulated solely by the National Bank of Romania (BNR).

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Piraeus Bank logs 13% increase in deposit portfolio 

Piraeus Bank reported that its portfolio of loans stood at EUR 963 million at the end of 2016, up 13% from the previous year. By comparison, the average growth rate of the national deposit market was 8%. At the end of 2016, Piraeus Bank accounted for 1.3% of the deposit market.

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Libra Bank's earnings reached RON 32.5 million last year 

Libra Bank posted for last year RON 32.5 million in earnings, while the net assets climbed to RON 3.39 billion. The earnings figure is the biggest in the bank's history. "Last year was another period of sustained and balanced growth for the bank," said CEO Emil Bituleanu.

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Investment News (3)

Teraplast Bistrita to borrow RON 60 million from BT 

Teraplast Bistrita, a producer of plastic objects, is planning to borrow a total of RON 60 million from Banca Transilvania. The company's management has approved the applications for two investment loans maturing in 84 months.

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Gral Medical completes EUR 5.5 million investment in OncoFort's radiotherapy department 

Gral Medical, a private medical care chain, has completed the EUR 5.5 million investment in the OncoFort Hospital's radiotherapy department. Most of the funds were spent on a particle accelerator worth EUR 3 million. The rest of the funds went to increasing the number of beds from 50 to 90.

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Farming infrastructure and commune road budget depleted in five days 

The budget allocated by the authorities for farming, road and education infrastructure through three submeasures of the National Rural Development Program (PNDR) was depleted in five days. The aggregated value of investment projects submitted by the interested parties was above EUR 782 million, four times bigger than the budget.

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Legislative News (2)

Unified payroll bill kept from social partners 

The unified payroll bill will be filed with the Parliament as an initiative belonging to the ruling coalition and not to the Cabinet, according to PM Grindeanu. As a result, the bill will not be discussed with the social partners, a move that raised the union's ire.

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Chamber commission endorses bill 

The Chamber of Deputies' Judiciary Commission reported out favorably the bill that amends articles 301 and 308 of the Criminal Code and thus strikes out the notion of a conflict of interests for public employees.

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Politics (1)

President hosts major event 

The Cotroceni Palace will host on Thursday and Friday an international conference called Interaction between the Political Majority and Opposition in a Democracy. The event is organized by the President's Office.

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