News

Daily Newsletter - 9 June 2017

Summary

FIC (1)

Third of Romania's private employees work for multinationals 

The Bucharest University of Economic Studies (ASE) and the Foreign Investors Council (FIC) launched the study entitled Foreign Direct Investments: their evolution and importance for Romania.The main conclusion of the study is that FDIs played a decisive role in the past 20 years and have helped the Romanian economy in its transition to functioning free markets. Considering the large investment needs of Romania, it is likely that foreign investors will continue to play a significant role in the future. Some conclusions of the study that are worth pointing out: Foreign companies employ a third of the work force in the private sector in Romania; Foreign companies are responsible for 70% of Romanian exports; Romania has the lowest stock of FDI/capita in the region; A lot of the FDI in Romania came as equity; Almost half of the Romanian FDI Stock has flowed in industry; Foreign investors contributed significantly to increasing the productivity of the Romanian economy.

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Macroeconomic News (3)

Private sector salaries up 14% in Q1 

A Smartree survey showed that private sector employees were paid higher salaries and bonuses in the first quarter of 2017. This is mainly the result of the economy's positive performance, the minimum gross salary's increase and the upward trend reported by a number of market sectors.

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MFP sold RON 20 million worth of bonds on Wednesday 

The Ministry of Finance (MFP) sold RON 20 million worth of bonds at Wednesday's supplementary auction. The average yield was the 4.12% per year set at the previous day's auction, according to the National Bank of Romania (BNR).

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Eurostat: Romania heads EU economic growth index 

Romania had the highest economic growth rate in the European Union in the first quarter of this year, compared to both the previous quarter and the corresponding quarter of 2016, according to data released on Thursday by the EU's statistics bureau, Eurostat.

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Financial News (4)

Piraeus Bank wants to sell its Romanian operations 

Piraeus Bank, the biggest banking group in Greece, is planning to sell its Balkans operations and unload some of its NPLs, according to CEO Christos Megalou. "Our vision is to be the most credible bank in Greece," said Megalou.

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Lazea, BNR: 80% of the poorest Romanians and 40% of the wealthiest have problems keeping up with their loans 

80% of Romania's poorest decile have problems keeping up with their loan installments. This is also true of 40% of the richest decile, according to Valentin Lazea, chief economist of the National Bank of Romania (BNR). BNR data indicated a drop in the number of bad debtors in April.

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Future banks won't have tellers 

In the future, financial services will be provided by IT&C companies just as often as banks, according to Radu Craciun, CEO of BCR Pensii. "Future banks will have little in common with the past, in the sense that the definition of banking activity will be more and more difficult to determine," said Craciun.

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BNR says debt sales is ANPC's purview 

The National Bank of Romania (BNR) has decided that debt sales are within the purview of the National Consumer Protection Authority (ANPC). The decision is the result of queries regarding the status of debt selling rules under Emergency Decree 52/2016 and Emergency Decree 50/2010.

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Investment News (1)

Kronospan invested EUR 10 million in new production line 

Kronospan announced on Thursday the opening of a fully automated lamination line at its plant in Sebes, Alba county. The project cost an estimated EUR 10 million. The next step for the company is to begin moving toward the production of low emission boards.

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Legislative News (2)

Attorney general wants CCR to discuss payroll bill 

Attorney General Augustin Lazar has written to the President of Romania, president of the High Court of Cassation and Justice (ICCJ) and the People's Attorney, urging them to refer the unified payroll bill to the Constitutional Court in order to determine whether the bill is constitutional or not.

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Playing with salaries 

The evolution of the unified payroll bill, from drafting to the final version passed by the Parliament on Wednesday, is a major failure of the PSD-ALDE coalition, according to a press release issued by representatives of the 100 Romania Platform.

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Politics (2)

Tariceanu blasts DNA head Kovesi 

Calin Popescu-Tariceanu, president of the Senate, accused DNA head Laura Kovesi of defying the Parliament by refusing to be questioned by the commission tasked with investigating the 2009 presidential election. Moreover, Tariceanu alleged that Kovesi's refusal is an implicit admission of her presence at the Oprea house meeting.

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PM Grindeanu meets with French counterpart 

Prime Minister Sorin Grindeanu was received on Thursday morning by his French counterpart, Edouard Philippe, at the Hotel de Matignon. "I have invited the Prime Minister of France to visit Romania. We have a shared political experience, so to speak. He comes from the local administration, too," said Grindeanu.

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