Daily Newsletter - 16 August 2018

Economic growth dynamic to fall more than expected

The National Bank of Romania (BNR) expects economic expansion to increase in 2018 by a larger margin than previously expected, followed by a re-acceleration in 2019, according to the transcripts of the latest monetary policy meeting. BNR noted that salaries are still being pushed upward and that consumption is expected to remain the main drive of economic growth.

GDP up 1.4% in Q2

Romania's GDP increased by 1.4% in the second quarter of this year, after stagnating in the first quarter. These figures are strengthening possibility of a 4% growth rate for the entire year. However, the Cabinet had based the state budget on a 5.5% growth rate and economist fear a budget deficit exceeding 3%.

Path to service economy fraught with problems

The transition to a service-focused economy is a long-term trend that has already been confirmed at the EU level in the second half of the last century. At the end of 2017, the number of workers employed by the service sector climbed to 74%, compared to 66% in 2000, while industry hiring fell from 26% to 22%.

Banca Transilvania reveals price tag

The Banca Transilvania financial group accepted to sell BT Operational Leasing to Autonom Services for RON 28.1 million, according to the latest financial report sent to the Bucharest Stock Exchange (BVB). The sale was announced on May 8.

RON rises slightly

The National Bank of Romania (BNR) posted a reference exchange rate of RON 4.6590 per EUR, RON 4.0854 per USD and RON 4.1212 per CHF. On August 3, the RON was in its strongest position against the European currency since November, 2017.

ING Bank Romania revenues up 25%

ING Bank Romania's revenues reached RON 875 million in the first half of this year, up 25% compared to the corresponding period of 2017. The number of clients is rising steadily, jumping 15% on an annual basis. The bank has 1.2 million active clients.

Alka starts building new plant

Sweets maker Alka, the company founded by businessman Amir Krenzia, has started building a new production facility for biscuits and salty snacks. The plant is located in Ploiesti and the EUR 11.5 million project is expected to be completed in the first quarter of next year.

Ministry of Finance lends money to local authorities

The Ministry of Finance released for public debate a draft decree that would allow the local authorities to apply for loans in order to secure the pre-financing or co-financing needed to launch projects funded with European Union grants. The loans can also be used to pay for ineligible expenses. The funds will come from the privatization revenues held by the State Treasury.

Ecaterina Andronescu urges Liviu Dragnea to step down

Ecaterina Andronescu, a former minister of education and leader of the Social Democratic Party's (PSD) Bucharest organization, has urged Liviu Dragnea to step down from the position of party leader. "If these things are not done urgently, we will lose power and the party would be ruined," said Andronescu.

USR initiative reaches minimum support

The "No Convicted Individuals in Public Jobs" initiative, which aims to amend the Constitution in order to ban all convicted individuals from holding public office, has reached the minimum threshold of collecting at least 20,000 signatures per county in 21 counties. The campaign announced that it has collected more 750,000 signatures so far.

PMB offers RON 450 in financial aid to school children

The Bucharest City Hall (PMB) wants to offer RON 450 to children going to primary and secondary schools in order to buy school supplies and books for the upcoming academic year, according to a draft decision brought before the City Council. The funds will be available to children belonging to families earning less than RON 1,900 per member.