Daily Newsletter - 7 December 2018


Macroeconomic News (3)

FMCG industry growth influenced by inflation

In the first nine months of this year, Romanians spent 6.4% more money on consumer goods than in the corresponding period of last year. The main reason behind the new trend is the increase in consumer prices. According to Eurostat, food inflation has increased by 4% compared to the corresponding period of last year. Even so, the volume of sales increased by almost 2%. However, Romanians did not migrate to higher price segments, as they did last year.


PIAROM president complains of consumption effects

Consumption-based economic growth is not sustainable and can very quickly lead to a crisis once the conditions that allow for this increase in consumption or wage growth are capped by the companies' failure to pay more, while the state continues to mandate arbitrary increases, which then create serious problems for the state budget, said Cristian Parvan, President of the Romanian Investors Association (PIAROM).


State's cost of borrowing up

The benchmark government bond yield jumped above the 5% threshold on Thursday. The Ministry of Finance (MFP) borrowed RON 300 million from the commercial banks on Thursday at an average yield of 5.33% per year through a bond issue maturing in 154 months, according to data from the National Bank of Romania (BNR). The the previous issue's yield was 4.67%. The budget deficit also jumped to 2.2% of GDP in the first 10 months of the year.


Financial News (3)

Alpha Bank wants to issue covered bonds in Romania

Alpha Bank announced yesterday that it is preparing for the launching of the first issue of covered bonds in Romania. The bank's shareholders approved the implementation of a framework program for covered bonds with a ceiling of EUR 1 billion, in an attempt to diversify the financing sources at a lower average cost.


Several big banks could be made insolvent by debtor relief expansion

The fate of the Romanian banking system hangs on the votes of several deputies and senators, and, by extension, the savings of millions of Romanians. This is not a joke, but a possibility mentioned by the National Bank of Romania (BNR).


Banking system restructuring continued

The restructuring of the banking system continued in the first nine months of this year, with the banks continuing to recruit new staff even as the number of branch offices fell. According to the National Bank of Romania, the number of branch offices decreased by 108 in one year, while the number of bankers increased by 297. Banks operating on the local market had 4,474 branch offices at the end of September, while the number of employees went up to 55,254.


Investment News (1)

NEPI opens Satu Mare mall

NEPI Rockcastle, the largest player on the local real estate market and the largest mall-owner in Romania, opened the Shopping City mall in Satu Mare. The project cost more that EUR 40 million. The South African group is now running 18 shopping centers in Romania.


Legislative News (1)

CCR rejects national security bill phrasing

The Constitutional Court of Romania ruled that the phrase "or other similar interests of the country", featured in Article 3 of Law 51/1991 on national security, is unconstitutional.


Politics (2)

Dan Barna: PSD is in free fall

Dan Barna, President of the Save Romania Union (USR), stated that the Social Democrats are in free fall. Barna was referring to the IMAS survey conducted in November, which showed the PSD at 24.9%.


PM to challenge President before CCR

The Cabinet will ask the Constitutional Court today to acknowledge a constitutional conflict with President Klaus Iohannis regarding the reshuffling of certain ministers. "We are forced to filed a complaint," said PM Dancila on Thursday.


Social (1)

Almost three quarters of Romanian households have internet access

Almost three quarters of Romanian households (72.4%) have internet access, up 3.8 percentage points from 2017, according to the National Statistics Institute (INS).