News

Daily Newsletter - 6 June 2017

Summary

Macroeconomic News (3)

World Bank improves Romania's economic growth estimate (Source: cursdeguvernare.ro; Date: 2017-06-05; Author: Unspecified)

The World Bank issued yesterday the Global Economic Outlook, which features a revised growth rate estimate for the Romanian economy: 4.4% instead of 3.7%. The estimates for 2018 and 2019 were also revised upwards to 3.7% and 3.5%, respectively.

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Farmers issue warning (Source: zf.ro; Date: 2017-06-05; Author: Unspecified)

Farmers have warned that this year's cereals and oilseeds harvest will be smaller than the previous year's. The wheat, rapeseed and sunflower crops are already suffering from the drought. "In the Bihor county, the wheat and rapeseed harvest will be 15-20% lower this year. Luckily, prices seem to have gone up a little," said Dan Corbut, owner of Agroind Cauaceu.

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Public borrowing to jump 40% (Source: adevarul.ro; Date: 2017-06-05; Author: Unspecified)

The Ministry of Finance (MFP) has scheduled RON 5.82 billion worth of loans for this month, up more than 40% compared to May. The MFP will organize eight auctions of T-bills and state bonds totaling RON 5.3 billion. The reminder will be borrowed through the non-competitive supplementary auctions.

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Financial News (4)

40% of Romanian consumers say financial products and services are similar (Source: economica.net; Date: 2017-06-05; Author: Unspecified)

40% of Romanian consumers say financial products and services are similar, regardless of provider, compared to an international average of 32%, according to the EY Global Consumer Banking Survey. 50% of Romanians said a better banking experience is the main reason for changing their main provider of financial services.

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Romanian and Hungarian banks saw fastest recovery (Source: cursdeguvernare.ro; Date: 2017-06-05; Author: Unspecified)

Romanian and Hungarian banks had "the most remarkable improvement" of their financial indicators in the past few quarters, according to the latest report on EU's emerging markets from Capital Economics. The firm's analysts praised the progress made by Romanian and Hungarian banks.

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BNR foreign currency reserves down EUR 477 million (Source: bursa.ro; Date: 2017-06-05; Author: Unspecified)

The National Bank of Romania (BNR) announced that the nation's foreign currency reserves had dropped by EUR 477 million in May, compared to the previous month, reaching a total of EUR 35.4 billion. May inflows amounted to EUR 541 million, while outflows surged to EUR 1 billion.

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Alpha Bank doubled earnings in Q1 (Source: zf.ro; Date: 2017-06-05; Author: Unspecified)

Greek group Alpha Bank reported EUR 8.3 million in gross profits from its Romanian operations, up almost twofold from the corresponding quarter of 2016, according to a report released in Athens. Most of the profits came from the EUR 5.8 million in minimum mandatory reserves eliminated in the past year.

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Investment News (1)

ASA Cons to invest EUR 500,000 in Turda plant (Source: zf.ro; Date: 2017-06-05; Author: Unspecified)

ASA Cons, a prefabricates producer based in Turda, Cluj county, and owned by French group Consolis, has budgeted EUR 500,000 worth of investment projects for this year. The company will focus on optimizing its production process and increasing its efficiency.

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Legislative News (1)

MADR: Food waste law cannot be enforced (Source: agerpres.ro; Date: 2017-06-05; Author: Unspecified)

The food waste elimination law cannot be enforced as it stands because it's "unclear, imprecise and unpredictable", according to the Ministry of Agriculture. The Minister has decided to postpone the enforcement of this law until the end of the year, while a work group is already discussing a new version of this bill.

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Politics (2)

"I don't understand why Olguta Vasilescu isn't spreading salary increases over the next 100 years" (Source: bursa.ro; Date: 2017-06-05; Author: Unspecified)

Ludovic Orban, a candidate in the upcoming internal elections of the National Liberal Party (PNL), stated yesterday that the unified payroll bill is "poorly written" and that it perpetuates imbalances, while telling tall tales of huge pay rises.

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Iohannis to meet President Donald Trump (Source: profit.ro; Date: 2017-06-05; Author: Unspecified)

President Klaus Iohannis left on Sunday for a six-day trip to the United States of America. Iohannis will be received by President Donald Trump at the White House, thus becoming the first Eastern European leader to be received by the US president.

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Social (1)

More than 120,000 gather at Sumuleu Ciuc for Pentecost pilgrimage (Source: agerpres.ro; Date: 2017-06-05; Author: Unspecified)

More than 120,000 gathered in Sumuleu Ciuc on Saturday for the Catholic Pentecost pilgrimage. Pilgrims started climbing the hill at dawn in what is seen as the biggest event of this kind in Central and Eastern Europe. Some of them had spent the night in prayer in the Sumuleu Ciuc cathedral.

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