News

Daily Newsletter - 5 August 2019

Summary

Macroeconomic News (5)

Consumption still below potential

"The statistics confirm the maturity phase of the post-crisis economic cycle, the annual dynamics (although accelerating in June) being below the potential rate for the eleventh consecutive month in June, despite the significant increase in the real disposable income of the population in the last months (with an annual rate of over 10%)," notes Andrei Radulescu, senior economist at Banca Transilvania.

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Analysts say Cabinet measures insufficient to balance budget

The Cabinet is preparing fiscal measures designed to increase revenues to the state budget in order to address the RON 19.96 billion deficit reported for the first half of this year. Cabinet sources say the list of measures includes a decision to bring forward by seven months an increase in the tobacco excise, imposing a new tax on sugary drinks, taxing special pensions, laying off 50% of state secretaries and freezing all vacant positions paid from the state budget.

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PNDR beneficiaries received RON 4.63 billion

The Rural Investment Financing Agency (AFIR) announced on Friday that beneficiaries of the National Rural Development Program (PNDR) have received a total of RON 4.63 billion since the beginning of the program. AFIR has signed 54,438 financing contracts under the 2014-2020 PNDR, according to an official press release.

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MFP to borrow RON 3.99 billion this month

The Ministry of Finance (MFP) has scheduled RON 3.99 billion worth of loans for this month, including a RON 200 million issue of discount T-bills. Up to RON 495 million may be borrowed through non-competitive auctions of state bonds. Compared to July, the borrowing target is 5.1% lower.

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Honey production up more than 70% in five years

Romania's number of bee families and honey production has been growing steadily over the past years. In 2017 and 2018, Romania ranked second in the European Union based on the number of families and first in honey production.

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Financial News (3)

Banks don't expect key rate increase

The economic analysts of the commercial banks say they do not expect the National Bank of Romania (BNR) to increase the key rate at today's monetary policy meeting, even though the inflation rate is rising, while the Cabinet's expected measures are unlikely to rein in the deficit. However, the analysts are very interested in the BNR governor's message, which will be delivered after the meeting.

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BRD-SocGen posts RON 803 million in earnings

BRD-SocGen, the third biggest bank of the Romanian market, posted RON 803 million in earnings for the first three months of this year, up 4.7% on an annual basis. "The financial result confirms that we are undergoing a transformation, that we continue to have a solid foundation for reaching our digitization, simplification and efficiency targets," said CEO Francois Bloch.

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Visa to debut new financial service in Romania

Visa will launch a new financial service in Romania, designed to help those who buy and make payments online. The Visa Direct instant payment service will make its European debut in Romania, allowing clients to be reimbursed instantly when returning products or services bought online with cards. The first retailer to implement Visa Direct is eMAG, Romania's leading online retailer.

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Investment News (1)

Porsche Holding considers expansion

The local luxury car market has grown in recent years in line with the national purchasing power, which is why customers are opting for more and more exclusive cars and are increasingly focusing on customized equipment, especially when paying over EUR 400,000 for a car. "We need development of the local market to take this step, to expand the network. For example, after the Porsche service in Timisoara we could follow up with another unit in Cluj. For an investment we have to have a business case because we cannot offer the Porsche client in Cluj a different experience than the one in Bucharest," said Alin Tapalaga, the general manager of Porsche Inter Auto.

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Legislative News (1)

MAI seeks new powers in teenager murder wake

The Ministry of Internal Affairs (MAI) has released for public debate a draft bill which would allow the authorities to use certain location means to find missing persons. At this time, the means in question can only be used if evidence indicated that a crime had been committed.

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Politics (2)

USR, PLUS vote alliance protocol

The National Council of the Liberty, Unity and Solidarity Party (PLUS) voted Saturday on the alliance protocol with the Save Romania Union (USR). The same step was taken by the USR Political Committee. The two parties agreement on an alliance in order to give the country a genuine political alternative, according to USR leader Dan Barna.

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PNL spokesman said PSD-ALDE coalition resorts to crisis measures to cover budget hole

Ionel Danca, spokesman of the National Liberal Party (PNL), criticized the PSD-ALDE ruling coalition for adopting the fiscal amnesty, saying the decree helps mainly those who refuse to obey the law.

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Social (1)

Almost 19,000 criminals released between 2017 and 2019

Almost 19,000 individuals sent to prison for murder, rape, theft, and drug smuggling were released between October 19, 2017, and June 21, 2019, based on the new appeal rules introduced by the PSD, according to statistical data obtained by Florin Roman (PNL).

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