News

Daily Newsletter - 7 June 2017

Summary

Macroeconomic News (3)

Pay rises postponed until 2018 

The Minister of Labor, Lia Olguta Vasilescu, stated on Tuesday that all public salaries would increase by 25% on January 1, 2018, and that education and medical workers would receive their additional hikes on March 1, 2018.

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Romanian household revenues up 9.6% 

The average monthly revenues of Romanian households reached RON 2,945 in 2016, up 9.6% compared to the previous year, while the average monthly spending was RON 2,524, up 7.3% from 2015, according to data released on Tuesday by the National Statistics Institute (INS).

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Romania exported goods and services worth EUR 20.3 billion in Q1

Romania exported goods and services worth EUR 20.3 billion in the first quarter of this year, up 13% year-on-year, according to a ZF estimate based on INS and BNR data. Meanwhile, the imports of goods and services reached EUR 20.8 billion, up 18% year-on-year. The trade deficit was EUR 514 million at the end of the first quarter.

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Financial News (4)

Two Romanians in five would let robots make financial decisions on their behalf, provided they can reject unsafe transactions 

Around 38% of Romanians would let robots make financial decisions on their behalf, provided they have the final decision-making power, according to the ING International Survey Mobile Banking 2017 - New Technologies. In general, people feel more comfortable with robots providing advice, but not making decisions.

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Minister of Finance ready to increase Prima Casa budget 

The Minister of Finance, Viorel Stefan, stated on Tuesday that the banks have yet to deplete their Prima Casa budgets and that the Ministry of Finance has a RON 500-600 million reserve for additional allocations.

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BNR issues new warning about virtual currencies 

The National Bank of Romania (BNR) has not changed its position on virtual currencies and issued a new warning about the risks posed by such products. The value of Bitcoins has tripled since the beginning of this year. The Ministry of Finance (MFP) has no plans regarding these currencies at this time.

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OTP has the best chance to buy Banca Romaneasca 

OTP is in a better position than Banca Transilvania to buy Banca Romaneasca, according to banking market sources. BR was put up for sale at the beginning of this year by the National Bank of Greece group. The sale is being managed from London and Athens by Credit Suisse's investment banking division.

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Investment News (1)

Prysmian open new fiber optic cable plant in Slatina 

Italian group Prysmian, one of the world's leading producers of cables and systems for the energy and telecom industries, will open next week its second manufacturing facility for fiber optic cable in Romania. The EUR 22 million plant is the biggest such investment project in the EU.

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Legislative News (1)

Senate amends ED 109/2011

The Senate passed on Tuesday an amendment to the emergency decree on corporate governance in order to exempt a series of state-owned companies from the decree's stipulations. Among these companies are the Oltenia Energy Complex (CEO), the National Meteorology Administration (ANM), Romtehnica, the Official Gazette and the Mangalia Shipyard.

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Politics (2)

Vosganian rejects Cabinet reshuffling 

Varujan Vosganian, vice president of ALDE, rejected on Tuesday the idea of a Cabinet reshuffling or the sacking of Prime Minister Grindeanu on grounds that it would be very inefficient. "Those who support such an idea don't understand anything about political mechanisms," said Vosganian.

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Iohannis awarded Light Unto the Nations award 

The American Jewish Committee honored Romanian President Klaus Iohannis with its Light Unto the Nations Award, the global Jewish advocacy organization's highest honor presented to world leaders. "President Iohannis has tenaciously pursued the prophetic vision of a more just and harmonious world," said Allan Reich, a member of AJC's Executive Council, who presented the award during the AJC Global Forum's World Leaders Plenary.

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