News

Daily Newsletter - 1 November 2019

Summary

Macroeconomic News (5)

Lucian Croitoru, BNR: We're drawing closer to a recession that will be worse than the one in 2008

Financial data indicates a high probability that a recession comparable to the one in 2008 is approaching, according to Lucian Croitoru, adviser to the BNR Governor. The warning was issued at the EU-COFILE seminar, which was organized by Alpha Bank, BNR and the Romanian Banking Association (ARB).

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Daianu calls for correction

Daniel Daianu, President of the Fiscal Council, told the EU-COFILE seminar that Romania cannot stay below the budget deficit cap in 2019 and that a correction needs to start with the 2020 budget.

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Industry shows partial recovery

The national industry showed a partial recovery in September, but the trend was driven mainly by an increase in domestic demand, rather than foreign orders, according to the barometer published by IRSOP and SNSPA on Thursday. Experts warn that the industry did not created new jobs in the past year.

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Tip: How to increase your deficit five-fold without building anything big

The general consolidated budget showed a deficit of RON 27 billion for the first nine months of this year, up more than RON 11 billion on an annual basis, according to data released by the Ministry of Finance.

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Romanian budget revenues low

Romania's state budget revenue collection is 27.1% of the GDP, which puts the country last but one in the European Union index, ahead of Ireland. However, since Ireland tends to use unorthodox means of evaluating its GDP, it may well be the case that Romania is actually in last place.

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Financial News (2)

Local bankers unhappy with IRCC index

Banking experts gathered at the EU-COFILE seminar in Sinaia said "the IRCC is a mathematical aberration" based on too many variables. The IRCC was calculated at 2.36% for the fourth quarter of last year. Today, it stands at 2.66%.

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Oprescu: "The decree can be amended immediately, if there's the political will"

The amending of Decree 114 in order to eliminate the bank asset tax could be done immediately, but replacing the consumer credit reference rate requires a lengthy analysis, according to Sergiu Oprescu, Chairman of the Board at the Romanian Banking Association (ARB). The statement was made at the EU-COFILE seminar.

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Investment News (1)

Rural tourism project

Romanian and Bulgarian experts teamed up to develop a joint strategy for putting to use the local resources of the Giurgiu-Ruse region in order to boost rural and cross-border tourism. The project, which is worth EUR 306,000, was unveiled at a press conference held in Giurgiu on Thursday.

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Politics (1)

Pro Romania MPs to boycott Orban cabinet vote

Senator Adrian Tutuianu stated on Thursday that Pro Romania MPs would not attend Monday's vote on the Orban cabinet.

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