News

Daily Newsletter - 22 January 2018

Summary

Macroeconomic News (4)

Romania accounts for 33% of EU's farms 

Romania accounts for 33% of all the farms in the European Union. Poland is the only other country to exceed 10%, albeit not by much. However, from the point of view of agricultural acreage, Romania lags behind France and Spain, according to Tudorel Andrei, president of the National Institute of Statistics (INS). The number of farms dropped by 26% across the European Union in the past seven years.

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Unemployment rate rose in December 

The national unemployment rate stood at 4.02% in December, 2017, up 0.75 pp on an annual basis and 0.02 pp on a monthly basis, according to data released by the National Workforce Agency (ANOFM). Of the 351,105 individuals registered with workforce bureaus across the county, 72,917 were paid unemployment aid.

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Moody’s says Romania outlook stable 

"The dynamic private consumption and recovering investor appetite for Central and Eastern European countries will be the main drivers of regional growth," according to Daniela Re Fraschini, associate vice-president at Moody's. Romania's outlook is stable, same as the outlooks of most countries in the region, and the regional economies are expected to continue growing.

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ANAF collected almost RON 215 billion last year 

The National Fiscal Administration Authority (ANAF) announced that it had collected RON 214.95 billion worth of revenue in 2017, thus meeting the RON 214.37 billion target set by the state budget. This was the highest annual figure reported by ANAF since its establishing in 2003. The voluntary compliance rate increased from 84.03% in 2016 to 85.44% in 2017, according to ANAF.

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Financial News (2)

Piraeus Bank sells EUR 200 million worth of NPLs 

Piraeus Bank announced at the end of last week the selling of a EUR 200 million batch of NPLs to Polish debt collector Kruk. Kruk is the leader of the debt management market in Central and Eastern Europe and it specializes in debt management and collection. Piraeus Bank Romania was sold at the end of 2016 to US investment fund J.C. Flowers.

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BNP Paribas to open Bucharest branch 

BNP Paribas, the biggest bank in France, has registered a subsidiary with Romania's Trade Registry. According to the National Bank of Romania (BNR), the subsidiary can start granting loans and offering deposits at the end of this month. The new bank will operate under the name BNP Paribas Personal Finance.

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Investment News (2)

Public investment at all-time low 

Public investment made by the Romanian state was at 3.6% of the GDP in 2016, an all-time low ad the lowest for the entire period of time analyzed by the organization. The country's accession to the European Union triggered a burst of public investment, with funds passing 6% of the GDP in the first two years and even in the first crisis year. Later, governments decided to slash investment budgets.

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Developer pours EUR 12 million in Otopeni flats 

Nicusor Stanciu, an investor who built an event center in Otopeni, is now building a residential ensemble of 140 flats in the same area. The Ambasad'Or Home is located on a 10,000 sqm property acquired by the company some years ago and the flats are already close to completion.

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Legislative News (2)

Andrew Popper hopes Parliament passes Royal House bill 

Andrew Popper, manager of the Royal House of Romania, told Antena 3 that he hopes the Parliament passes the Royal House bill. Popper also mentioned that negotiations between the royal family and the government are "promising". The royal family wants to continue staying at the Elisabeta Palace.

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Minister of Education wants stricter rules 

The Minister of Education, Liviu Pop, stated that the education rules must be changed in order to prevent fired teachers for bad behavior from returning to the education system. Pop noted that teachers involved in school violence can simply show up for hiring interviews again because the law does not prevent it.

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Politics (2)

Senator Andronescu says protests could hurt Romania's image 

Senator Ecaterina Andronescu, vice-president of the Social Democratic Party (PSD), told Digi24 that Saturday's protests could hurt Romania's image abroad. Andronescu added that everyone loses if the idea that Romania is unstable and ungovernable gains traction.

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Dragnea negotiates UDMR support 

Liviu Dragnea, leader of the Social Democratic Party (PSD), is negotiating with the Democratic Union of Romanian Magyars (UDMR) in order to secure the latter's support for the Dancila Cabinet. Although the PSD and ALDE control a majority of votes in the Parliament, the PSD wants UDMR support to show that it still has a crushing majority despite the fall of two governments in one year.

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