Daily Newsletter - 24 April 2018

Foreign investors: State of Romania’s economy reflects public policy

The Foreign Investors Council (FIC) considers that recent negative economic data which drew the attention of politicians are the result of legislation that was adopted without proper impact assessments that could have anticipated it. FIC and the entire business community has constantly advocated for such impact studies and we are fully open to contribute to them.The political discourse which aims to blame certain market actors, who’s opinions were ignored during the consultation period, serves solely to deteriorate the trust of the business community in Romania.

Romania's budget deficit third highest in EU

The 2.9% budget deficit logged by Romania for 2017 was the third highest in the European Union, behind the 3.1% and 3% reported by Spain and Portugal, respectively. On the other hand, Romania's public debt is 35% of the GDP, one of the lowest figures in the European Union, according to data released by Eurostat on Monday.

Teodorovici says Romania would stand by commitments

The Minister of Finance, Eugen Teodorovici, attended the World Bank and IMF spring meeting in Washington, which was held on April 20 and 21. Teodorovici met with Poul Thomsen, head of the IMF's European division, in order to assure the international officials that Romania would stand by its commitments, including the deficit cap.

Sales of IT&C products increased 14-15% last year

The sales of IT&C products jumped 14-15% last year, comparable to the 2014-2015 sales figures and significantly higher compared to 2016, according to a study by Euler Hermes. Still, the December inflation rate may have inflated the sales figures. Mobile phones are the most popular acquisition, with sales growing at 25% in 2017.

Banca Transilvania to buy out Bancpost's minority shareholders

Banca Transilvania is planning to buy the 25 million Bancpost shares held by the minority shareholders. BT offered RON 0.2848 per share, which puts the entire minority stake at RON 7.2 million. The offer is valid between April 25 and June 29. The bank will notify investors regarding the result of the buyout offer as soon as the procedure is completed.

Banks say DAE is not what people think it is

Banking experts and their lawyers say the annual effective rate (DAE) is meant solely for information purposes, something that clients can use as guidance when selecting a loan and not the actual cost of loans. This mistaken view shapes the society's belief in the DAE as a consumer protection tool and is implicit in the interest cap bill drafted by Senator Daniel Zamfir (PNL).

BNR launched second liquidity reduction operation

The National Bank of Romania (BNR) launched yesterday the second liquidity reduction operation this month. 21 banks deposited RON 18 billion with BNR for one week at 2.25% per year. 2018 is the first time in seven years that BNR resorts to liquidity draining operations.

Targu Mures modernization work can be monitored in real time

Peti Andras, chairman of the board at the Transilvania International Airport in Targu Mures, announced on Monday that the modernization of the airport's runway can be watched online by any citizen. This is the first public investment project in Romania that can be monitored around the clock, especially since the construction crews are also working day and night.

Iohannis steps in

President Klaus Iohannis announced that he would mediate the conflict between the Cabinet and the National Bank of Romania (BNR). The President wants to organize a meeting between PSD leader Liviu Dragnea and BNR Governor Mugur Isarescu at the Cotroceni palace in order to identify the problems and their solutions.

PNL files motion against Minister of Health

The National Liberal Party (PNL) announced on Monday that it had filed a simple motion against the Minister of Health. The MPs who filed the motion called it a "cry of desperation of millions of patients and hundreds of thousands of employees".

Survey of fairness views in Romania

Only one in three Romanians agrees that opportunities to find success in life are fairer than 30 years ago. The EU average is 46%, according to the Eurobarometer figures released on Monday. When it comes to equal opportunities, Romanians are 20 points below the EU average.

Romania had 5.03 million pensioners in February

The authorities had 5,038,200 social security and agriculture pensioners registered at the end of February, while the average pension was RON 1,072, according to data from the Ministry of Labor and Social Justice.