News

Daily Newsletter - 8 September 2017

Summary

Macroeconomic News (4)

Romania imported USD 437 million worth of shoes in 2016 

Romania imported 52 million pairs of shoes worth USD 437 million last year, according to the World Footwear report for 2016. The value of imports is at a ten-year high.

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Average net salary up RON 11 in July 

The average net salary was RON 2,391 in July, up RON 11 on a monthly basis, according to the National Statistics Institute (INS). The highest average salary was reported by the IT sector (RON 6,009), while the lowest came from the hospitality sector (RON 1,418).

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Fuel price up 

OMV Petrom, leader of the national fuel market, announced a new increase in fuel prices on Thursday morning, following an increase in the international prices. This is the third price hike in five working days.

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IMF advises government to aim for 1.5% budget deficit 

The International Monetary Fund has advised the Romanian government to aim for a 1.5% budget deficit in the medium-term, in order to keep the public debt under control, according to Alejandro Hajdenberg, the IMF representative to Romania.

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Financial News (3)

Heated negotiations for Bancpost and Piraeus Bank takeover 

The negotiations over the acquisition of Bancpost and Piraeus Bank are getting close to completion. The stake is two banks with a combined market share of 4.6% and millions of clients. Bancpost is wanted by Banca Transilvania and investment funds Varde and J.C. Flowers.

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NBFIs to take new bite of banking business 

Non-banking financial institutions continue to "eat the banks' lunch", according to statements made by lawyer Gheorghe Piperea regarding the new regulation that allows NBFIs to issue letters of guarantee. Piperea is PM Tudose's honorary adviser for banking, capital markets, taxation and insolvency.

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Volume of NPL sales up significantly 

The banks, the utilities companies and the telecom operators will be allowed to deduce up to 30% of the nominal value of unloaded NPLs, which could provide a major boost to the NPL market. "The market is somewhat concerned about the possible negative effect of the Tax Code modification regarding the NPL rate," said KPMG's Cezar Furtuna.

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Investment News (2)

Cantacuzino Institute to receive EUR 100 million in funding 

The Cantacuzino Institute could receive EUR 100 million in European Union funding, after it is put under the Army's control, according to statements made by Prime Minister Mihai Tudose at the beginning of Thursday's Cabinet meeting.

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CNAB to build new terminal at Henri Coanda Airport 

The Henri Coanda Airport has a two-stage expansion plan that would increase its capacity to more than 20 million passengers, twice more compared to the current figure. The plan is worth EUR 818.5 million, not including the cost of property condemnation.

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Politics (2)

PM Tudose: The Cabinet is subordinated to the party 

Prime Minister Mihai Tudose denied on Thursday any tensions between himself and Liviu Dragnea, president of the Social Democratic Party (PSD). The PM said the Cabinet is subordinated to the party and that he is only the party's vice president.

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Orban blasts PSD 

Ludovic Orban, president of the National Liberal Party (PNL), has accused the Social Democrats of being ready to grant the Magyar minority "privileges that do not exist in any EU country", in exchange for continued support for the current Cabinet.

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