News

Daily Newsletter - 10 May 2019

Summary

Macroeconomic News (3)

4% of companies account for 79% of national turnover

At the beginning of 2018, the number of distressed companies reached 51% of total number of impact companies, reversing for the first time the balance between healthy and distressed companies, according to a study released by CITR Group on Thursday. Although the number of impact companies (with assets over EUR 1 million) increased compared to the previous year, they still account for 4% of the market, while their value as a share of the economy increased exponentially. More than half of Romania's almost 4 million employees are employed by impact companies.

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Service exports reached EUR 3.7 billion

The balance of the foreign service trade was EUR 1.3 billion in the black at the end of February, 2019, up 10% on the year. The service surplus covers more than half of the goods trade deficit. Romania exported services worth a total of EUR 3.75 billion in the first two months of this year, according to the National Bank of Romania (BNR).

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2019-2022 Convergence Program

Bucharest authorities estimate that the GDP per capita exceeded 65% of the European Union average in 2018, based on the standard purchasing power. By 2021, the authorities want the GDP per capita to exceed the 70% threshold, according to the 2019-2022 Convergence Program adopted by the Government on Wednesday. "According to statistical data, Romania's economic growth is among the highest in the European Union. In the last 3 years, the average annual economic growth was 5.3%. [...] The high economic growth helped narrow Romania's development gap to other EU countries," reads a press release from the Ministry of Finance (MFP).

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Financial News (4)

CEC Bank switches to IRCC, offers special deal on refinancing

CEC Bank has added the new IRCC benchmark rate for consumer loans to its products, followed by the launching of a special deal on all refinancing loans, according to a press release. Retail customers can take out refinancing loans featuring interest rates that are 0.5 percentage points below the standard rate.

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Banca Transilvania posts RON 436 million in Q1 earnings

Financial group Banca Transilvania posted RON 507.5 million in earnings for the first quarter of this year, up 30%. The group's assets amounted to RON 79.7 billion, 22% higher compared to the corresponding period of 2018. The bank business alone reported RON 436 million in earnings and assets worth RON 75.9 billion. Net loans account for 48.5% of the group's assets.

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Garanti Bank logs RON 113.3 million in 2018 earnings

Ufuk Tandogan, CEO of Garanti Group Romania, said 2018 was profitable year for all Garanti institutions in Romania. The group strengthened its market position in a healthy and balanced way, and is aiming in 2019 to maintain the previous year's growth rate and return on equity. Garanti Romania reported RON 140.3 million in consolidated earnings and RON 11.8 billion in assets for last year.

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Intesa Sanpaolo posted EUR 4 million in Q1 earnings

Intesa Sanpaolo Romania, the local subsidiary of the namesake Italian group, posted EUR 4 million in earnings for the first quarter of 2019, compared to a loss of EUR 2 million in the corresponding period of 2018, according to the financial report released in Milan.

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Investment News (2)

Openville Timisoara owners to build healthcare hub

Real estate developers Iulius and Atterbury Europe will include an integrated healthcare hub in one of the office buildings that make up the Openville Timisoara ensemble. The hub will feature 3,000 sqm of doctors' offices. "The hub will offer a full range of diagnostic and treatment services for multiple medical specializations," said the developers' representatives.

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Sports complex opens in Cumpana, Constanta county

A sports complex featuring 850 seats was inaugurated on Thursday in the Cumpana commune, Constanta county. The project cost more than RON 14 million. The inauguration ceremony was attended by Deputy PM Vasile Suciu, according to the Ministry of Regional Development and Public Administration (MDRAP).

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Politics (2)

President Iohannis to attend PNL rallies

President Klaus Iohannis stated in Sibiu, on Thursday, that he would attend the campaign rallies organized by the National Liberal Party (PNL) in order to promote the judiciary referendum.

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EU socialists refuse to meet PSD leaders

The leaders of socialist parties from across the European Union gathered in Sibiu for the summit will hold an informal meeting this morning to discuss the European Parliament election. The leaders refused to meet Liviu Dragnea, leader of the Social Democratic Party (PSD), and Prime Minister Viorica Dancila.

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Social (1)

EU depletes planet resources

The European Union accounts for 7% of the world's population, but consumes 20% of all resources. This consumption rate is directly responsible for the extreme weather phenomena reported on the continent. Experts say that the EU must reach zero emissions by 2040.

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