Daily Newsletter - 22 June 2018

Romania has one of lowest GDP per capita in EU

Although the local GDP per capita has risen to almost 60% of the EU average, Romania continues to rank at the bottom of the Union's GDP per capita index, according to 2018 country report released by the European Commission. Between 2007 and 2016, Romania's GDP per capita gained 20 percentage points, relative to the EU average. The exception to the rule is Bucharest, whose GDP per capita is close to 140% of the EU average.

Base metal prices up

The price of base metals is expected to rise until 2019, although non-ferrous metals will drop. Metal prices have been rising steadily since mid-2016, according to a Coface study. Official data from the National Statistics Institute (INS) showed that foreign demand had ensured that the local market would follow the general trend.

BT receives ASF nod for bond issue

Banca Transilvania announced that it had received the Financial Supervisory Authority's (ASF) approval to sell an issue of unsecured, subordinate, EUR-denominated bonds worth a total of EUR 285 million. "These bonds were not and will not be offered to the Romanian public. They will be made available for subscription to a small number of investors," reads the bank's press release.

Banks turn down applications of restricted data clients

Banking sources say that, in the wake of the GDPR regulations implementation, some of the clients who apply for personal needs loans have parts of their credit records listed as "restricted data" at the Credit Bureau. Still, those who are most likely hiding bad loans and are looking to take out new ones is relatively low, around 2% of the total.

Government approves program for giving interest-free loans to young people

The "Invest in Yourself" program was approved by decree of the Cabinet yesterday, according to spokesman Nelu Barbu. "This is a program aiming to help increase employment in those parts of the country where lack of skills is being felt in several fields," said Barbu. The program lets people aged 16 to 55 to take out loans guaranteed by the state, provided they are enrolled in regular or vocational education.

10 biggest investment projects received less than 9% of scheduled funding

The state's big investment programs could prove once again victims of the strict control exerted by the Ministry of Finance in order to keep the budget deficit below cap, especially since the figures from the first four months of this year indicate a fourfold surge in deficit. The payments made this year to the 10 biggest investment projects are less than 9% of the scheduled financing.

Iohannis sends RNPM bill back

On Thursday, President Klaus Iohannis sent the National Real Estate Advertising Registry (RNPM) back to the Parliament with a request to review. According to the President, the bill needs to stipulate what every holder of the right to registration can do, in order to prevent the emergence of bad competition between operators.

New bill leaves renewable energy investors hanging

The final form of the renewable energy regulations, which will be sent to the Chamber of Deputies' floor for a vote, features a number of last minute changes from the Industry and Services Commission. However, the additions do not offer any predictability or guarantees to renewable energy investors, but leave them to the mercy of ANRE and Cabinet.

Tariceanu says Dragnea still presumed innocent

Calin Popescu Tariceanu, President of the Senate, stated that the ICCJ ruling that sends Liviu Dragnea to court for 42 months is just the first court ruling and that Dragnea is still presumed innocent.

PNL and USR demand Dragnea's resignation

The National Liberal Party (PNL) and the Save Romania Union (USR) demanded that Liviu Dragnea step down from his position of President of the Chamber of Deputies, following ICCJ's decision to slap a 42-month prison sentence on Dragnea in a false hiring case. Former prime minister Dacian Ciolos publicly urged Dragnea to retire to private life.