News

Daily Newsletter - 5 July 2017

Summary

Macroeconomic News (4)

Ministry of Energy wants investments 

The Ministry of Energy has asked all the companies it holds stakes in to spend at least 20% of this year's budgets on investments, according to Minister Toma Petcu. "Romania has a real chance to become a source of energy security in the region around 2020," said the Minister.

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Industrial production prices down slightly in May 

The industrial production prices dropped 0.1% in May, compared to the previous month, and the annual growth rate is down to 3.3%, according to data released on Tuesday by the National Statistics Institute (INS). The biggest contraction rates were reported for coking and crude processing products (-7.8%) and crude and natural gas extraction (-5.1%).

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10% increase in state employees' revenues boosts salary dynamic by 3.5 pp 

A 10% increase in the revenues of state employees will lead to a 3.5 pp acceleration of the salary dynamic in the industry in one year, according to a report released by the National Bank of Romania (BNR).

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High insolvency risk for almost half of active companies 

Almost half of the companies operating in Romania have a high insolvency risk, according to a press release from Coface Romania. The situation is the result of a profound polarization in the Romanian business sector, which is far worse compared to Hungary, Poland or the Czech Republic. The top 10% of local companies accounted for almost 91% of all business revenues at the end of 2015.

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Financial News (4)

BNR Governor criticizes banks 

Mugur Isarescu, Governor of the National Bank of Romania (BNR), criticized the banks for the second time in two months, saying that their employees are insufficiently trained, even as the banks complain that Romanians lack financial education.

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CEC Bank looks toward social media 

"I think social media platforms are very good brand promotion channels, very good for introducing your brand to the Millennials and much cheaper than TV promotion," said Mirela Iovu, a vice president of CEC Bank.

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National banking system logs RON 4.15 billion in 2016 earnings 

The national banking system ended 2016 with RON 4.15 billion in aggregated earning, slightly below the previous year's figure, according to the annual report released by the National Bank of Romania (BNR).

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Bancpost and EximBank ink guarantee deal 

Bancpost and EximBank have signed a partnership designed to increase the banking system's support for local entrepreneurs. Under this partnership, Bancpost will offer a total of RON 20 million worth of loan guarantees to its clients. Clients can apply for guarantees amounting to 70% of the credit lines' values.

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Investment News (1)

MD inks financing deal 

Mulberry Development, the company owned by Timisoara businessman Ovidiu Sandor, has signed a financing agreement with Raiffeisen Bank. The funds will cover the development costs for the first stage of an office building, part of the Isho project.

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Legislative News (2)

PNL MPs file bill regarding intelligence officers 

PNL MPs Cezar Preda and Ioan Chirtes have filed a bill with the Chamber that would ban intelligence officers from joining political parties or organizations, as well as from taking part, directly or indirectly, in political propaganda and serving political purposes.

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Cabinet issues emergency decree, amends laws 

The Cabinet issued Emergency Decree 49/2017, which amends a number of laws in an attempt to accelerate the absorption of EU funds and facilitate the implementation of infrastructure projects, according to the Ministry of Development and EU Funds (MDRAPFE).

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Politics (1)

PNL keeps close eye on Cabinet 

"We are keeping a close eye on every ministry because the law allowing the Cabinet to issue decrees during the Parliament recess opens the door to situations similar to Emergency Decree 13 and we might end up with catastrophic bills published in the Official Gazette without any public debate," said PNL leader Ludovic Orban.

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