News

Daily Newsletter - 6 April 2017

Summary

Macroeconomic News (4)

Off-shore royalties to be lower than on-shore royalties (Source: economica.net; Date: 2017-04-05; Author: Unspecified)

Romanian officials have stopped announcing firm deadlines for completing the legislation on oil royalties. The only certainty is that off-shore royalties will be lower than on-shore royalties. "It's logical to have different rates. The cost of operating a well at sea is different from one on land," said the Minister of Economy, Mihai Tudose.

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PM Grindeanu: "We can speak of a Q1 budget surplus" (Source: zf.ro; Date: 2017-04-05; Author: Unspecified)

"The data I received at the end of the first quarter are encouraging. We can speak of a first quarter budget surplus. The budget is an ambitious one, compared to what happened last year. We allocated an extra RON 10 billion to investment," said Prime Minister Sorin Grindeanu.

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"Bonuses to be capped at 30%" (Source: bursa.ro; Date: 2017-04-05; Author: Unspecified)

Mugur Isarescu, Governor of the National Bank of Romania (BNR), stated that salaries are being pushed up because of the labor shortage experienced by certain economic sectors. The Governor added that the authorities should keep an eye out for possible macroeconomic imbalances.

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EUR 115 million in farming subsidies (Source: profit.ro; Date: 2017-04-05; Author: Unspecified)

Farmers, both companies and individuals, will be allocated a total of EUR 115 million in subsidies for the payment year 2016, part of the agriculture support system for 2015-2020, according to a decision made by the Cabinet on Wednesday.

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Financial News (4)

NPL rate to resume growing in 2-3 years (Source: economica.net; Date: 2017-04-05; Author: Unspecified)

APS Romania, the biggest manager of investment and debt, stated that the NPL rate of the national banking system would resume growing in two-three years. The reason? The banking system restructuring process was limited to the unloading of bad debts.

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Exchange rates fluctuated, interest rates kept their cool (Source: zf.ro; Date: 2017-04-05; Author: Unspecified)

The national currency and the yield of state bonds came under heavy pressure in the first quarter of this year because of domestic political turmoil culminating in street protests and financial uncertainties. However, the interest rates remained relatively stable.

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BNR talks about "normalization" of monetary policy, but fears speculative capital inflows (Source: profit.ro; Date: 2017-04-05; Author: Unspecified)

The National Bank of Romania (BNR) kept its key rate unchanged at yesterday's board meeting. Governor Mugur Isarescu spoke about a "normalization" of the monetary policy by bringing the market interest rates closer to the key rate.

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BNR keeps key rate at 1.75% per year (Source: bursa.ro; Date: 2017-04-05; Author: Unspecified)

The National Bank of Romania's (BNR) board of directors decided on Wednesday to keep the key interest rate at 1.75% per year. The minimum mandatory reserves were also kept at the same levels, according to the official press release.

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Investment News (1)

OMV Petrom signs deal with Auchan (Source: profit.ro; Date: 2017-04-05; Author: Unspecified)

OMV Petrom has signed a partnership with the local subsidiary of French retailer Auchan for the opening of proximity stores in Petrom gas stations. 15 stores are expected to open before the end of this year under the MyAuchan brand. The first opening is scheduled for May.

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Legislative News (2)

Criminal Code amendments (Source: cursdeguvernare.ro; Date: 2017-04-05; Author: Unspecified)

The draft amendments to the criminal codes no longer features a minimum amount needed to designate wrongdoing as abuse of office powers, while another bill would implement the EU directive on extended confiscation, according to the Minister of Justice, Tudorel Toader.

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Dragnea: "I do not think dignitaries should hire their relatives" (Source: news.ro; Date: 2017-04-05; Author: Unspecified)

Liviu Dragnea, president of the Social Democratic Party (PSD), stated on Wednesday in Sinaia that he does not think dignitaries should hire their relatives at their public offices. "Relatives are people you meet at home during the holidays," said Dragnea.

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Politics (1)

PSD's surprise move (Source: evz.ro; Date: 2017-04-05; Author: Unspecified)

Cozmin Gusa stated on Realitatea TV that the actual reason why the PSD is fighting the Constitutional Court ruling banning people with police records from public positions is to allow Liviu Dragnea to run for president, not prime minister.

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Social (1)

WHO tells Romanian authorities to stop measles epidemic (Source: cursdeguvernare.ro; Date: 2017-04-05; Author: Unspecified)

The Minister of Health, Florian Bodog, announced on Wednesday that he would order the emergency purchase of 115,000 shots of measles vaccine. The purchase would be enough for two months, the time needed to begin the procurement procedure for the entire national vaccination program.

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