News

Daily Newsletter - 8 November 2018

Summary

Macroeconomic News (2)

BNR is trapped by fiscal and financial dominance

At the last monetary policy meeting of this year, BNR's board decided to keep the key rate at 2.5%, despite significant inflationary pressure and rising energy prices. Moreover, foreign pressures on inflation will increase as consumer and industrial prices rose faster than expected in the eurozone. While BNR officials say the national banking system is very solid, an increase in interest rates would create losses, while the Prima Casa program is a ticking time bomb.

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National retail sector up 3.1% in September

Retail sales jumped 3.1% in September, compared to the corresponding month of 2017. The sales growth rate was 1.8% in August and 4.6% in July, according to Eurostat. The July-September growth rates are 50% down from the corresponding period of 2017.

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Financial News (2)

Daianu: To join the eurozone, we need to wait at the door for at least two years

Daniel Daianu, a member of the National Bank of Romania's (BNR) board, stated during a speech held at the University of Craiova that joining the eurozone would require Romania to wait at the door for at least two years. The waiting period is necessary to prove the robustness of Romania's economy and to bring the budget deficit down to around 1%.

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Five banks prepare to launch instant RON-denominated payments

Five Romanian banks have shown interest in introducing an instant payments system, two of which are in advanced stages of implementation, according to the information presented at an event attended by the representatives of the banking system on Wednesday. "The project is being carried out together with Transfond and a number of banks, including the bank I represent - CEC Bank, Banca Transilvania and, if I am not mistaken, BCR. We are in the process of providing these payments to our customers," said Radu Gratian Gheţea, Chairman of the Board at CEC Bank.

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Investment News (1)

Italian company lands EUR 30 million modernization contract

The Maritime Ports Administration S.A. awarded Italian company Impresa di Costruzioni Ing. E. Mantovani an EUR 30 million contract for modernizing the infrastructure of the Constanta Port. The contract had been sought by companies from Belgium and China.

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Legislative News (2)

Chamber passes education law amendments

The Chamber of Deputies passed Decree 87/2018, which amends and completes the National Education Act. The decree allows professors who teach the languages of ethnic minorities to teach Romanian language and literature.

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Chamber approves Highway A8 construction

The bill approving the implementation of the project for building the Iasi-Targu Mures Highway (A8), also known as Union Highway, was passed by the Chamber of Deputies on Wednesday. The Government had previously rejected the project.

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Politics (1)

ALDE joins opposition over mayoral election rules

ALDE deputies backed the bill setting up a two-round system for mayoral elections in yesterday's vote, despite the Social Democrats' (PSD) decision to cling to the current system. Vice-President Varujan Vosganian announced that ALDE had no intention to break up the ruling coalition.

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Social (2)

AIICB head says 7 million left Romania

The number of Romanians who have left the country is actually around 7 million and it's unlikely that more than 10% of them will return, according to Cezar Caleap, Executive Director of the Belgium International Association of Creative Enterprises (AIICB).

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Romanians fear fire, earthquake and robbers

Romanians fear fire, earthquake and robbers, but most of them take no security or preventive measures. One in 10 Romanians modified his or her house in a way that creates structural problems, 6 out of 10 have no smoke detectors and no fire extinguishers, while 3 out of 10 leave their windows open when they go out.

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