News

Daily Newsletter - 1 March 2019

Summary

Macroeconomic News (3)

Romania's debt to increase

Romania's national debt will increase gradually, as percentage of the GDP, causing sustainability risks in the medium term, according to the European Commission's report. The cost of financing the public debt has been rising since the middle of 2017.

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Inflation pushed up consumer good prices

The FMCG sector reported a 5.7% growth rate for 2018, compared to the previous year. However, most of the increase came from inflation. Food prices jumped 4% last year, according to Eurostat. Consumption was up, but customers did not move toward more expensive goods.

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Decree 114 to pass Senate today

Emergency Ordinance 114/2018 adopted by the Government without public consultation introduces a series of charges with impact on several economic sectors. The Ordinance will be tacitly adopted by the Senate on 1 March. 

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Financial News (4)

Top three banks logged almost RON 4 billion in earnings

Banca Transilvania, BCR and BRD logged RON 3.96 billion worth of combined earnings for 2018, plus RON 9.86 billion in operating revenues arising exclusively from the increase in interest rates, according to preliminary financial data. The biggest earnings jump was reported by BCR - 80%.

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Danescu, ARB: "Our first option is the tax repeal"

Representatives of the Romanian Banking Association (ARB) explained at the meeting hosted by the Ministry of Finance (MFP) yesterday that the financial asset tax could not possibly reach its stated targets and that the first option is to have it repealed, followed by a limitation of its effects.

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Banca Transilvania becomes leader of national banking sector

Banca Transilvania has become the leader of national banking sector, overtaking BCR based on the value of assets. BT reported RON 74.1 billion worth of assets for 2018, while BCR logged RON 71.5 billion. BCR has been the biggest local bank for the past 19 years.

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BCR suspends 20% of investment plans

The financial asset tax will have major macroeconomic effects, beyond the individual impact that each bank will experience, according to Sergiu Manea, Executive President of BCR. Manea attended the first round of talks with the Minister of Finance, along with other heads of ARB member banks. The purpose of these talks is to find ways to improve Decree 114.

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Investment News (1)

EUR 30 million investment in eastern infrastructure

The financing contract for the biggest road infrastructure project in 30 years for the city of Galati was signed on Thursday. The project will see the upgrading of Galati's beltway to a county road. The new beltway will boast four lanes and an overpass, along with bicycle lanes, sidewalks and public lighting.

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Legislative News (1)

Tax credits for companies establishing creches and kindergartens

UDMR filed with the Chamber of Deputies a bill offering tax credits to companies that establish creches and/or kindergartens for the children of their employees, as well as companies that cover the costs of having their employees' children enrolled in preschool units. The bill is based on a proposal put forward by Ready Nation, an education NGO.

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Politics (2)

Ludovic Orban: I demand official support for Kovesi

Ludovic Orban, President of the National Liberal Party (PNL), sent an open letter to Prime Minister Viorica Dancila demanding a "favorable vote mandate" for Laura Kovesi's run for chief prosecutor of the European Union.

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Poll - PSD below 25%

The Social Democratic Party (PSD) has fallen below 25%, according to a poll commissioned by Europa FM and conducted by IMAS. The National Liberals (PNL) are now equal to the PSD, while the USR-PLUS alliance reached 18%. Victor Ponta's Pro Romania passed 13%, while ALDE scored 12.5%.

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Social (1)

Almost half of Romanians lived in overcrowded households in 2017

47.8% of Romanians lived in overcrowded households in 2017, down from 48.4% in 2016, but almost three times above the European Union's average, according to data released by Eurostat on Thursday. The highest figures for overcrowding were reported by Romania, Bulgaria (43.5%), Croatia (41.4%), Latvia (40.7%) and Hungary (40.1%).

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