News

Daily Newsletter - 10 September 2019

Summary

Macroeconomic News (3)

Nominal net salary down

The nominal net salary was RON 3,119 in July, down RON 23 from the previous month, according to data released by the National Statistics Institute (INS). The average gross nominal salary was RON 5,091 in July, down RON 36 from the previous month. The biggest salary gains were reported by the IT sector, while the lowest were logged by the apparel production industry.

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MFP to borrow RON 3.99 billion this month

The Ministry of Finance (MFP) has scheduled for this month loans worth a total of RON 3.99 billion, including RON 200 million from a discount T-bills issue and RON 3.3 billion through seven issues of state bonds. Non-competitive bidding could bring in an estimated RON 495 million.

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Trade deficit reached record figure

The trade deficit surged to a record EUR 1.75 billion in July, up 55% on a monthly basis and 38% on an annual basis, according to the National Statistics Institute (INS). Exports fell around 1%, while imports jumped almost 6%.

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Financial News (5)

76% of BVB investors have EUR 3,900 average portfolio

76% of the investors on the Bucharest Stock Exchange (BVB) have average portfolios worth EUR 3,900, while 22% hold an average of EUR 213,000 in their accounts, according to the latest data from the Investor Compensation Fund (FCI). The remaining 2% are mainly institutional investors.

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CEZ advertises sale of Romanian assets in Financial Times

Czech energy and utilities group CEZ has officially launched the process of selling its Romanian assets with the publication of a detailed ad in Financial Times. CEZ included seven local companies in the market test: Distributie Energie Oltenia, Ovidiu Development, Tomis Team, MW Team Invest, CEZ Vanzare, TMK Hydroenergy Power and CEZ Romania.

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Food card payments in restaurants up 24%

The number of restaurant transactions involving food cards increased by more than 24% in the first half of this year, according to Edenred Romania. The criteria based on which holders choose restaurants are food quality, price, proximity to work, the option to pay with food cards, and cuisine.

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Omniasig posts 14% increase in gross subscribed premiums

Omniasig, an insurance company controlled by Vienna Insurance Group, posted more than RON 630 million in gross premiums for the first six months of the year, up 14% on an annual basis. The company's gross profits amounted to more than RON 21 million.

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Three banks control 75% of banking earnings

Banca Transilvania was the most profitable bank in the first half of this year, followed by BRD-GSG and ING Bank. The three banks reported a combined RON 2.04 billion in earnings, 73.7% of the entire banking system's earnings, which stood at RON 2.76 billion, according to the National Bank of Romania (BNR).

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Investment News (2)

Mid Europa Partners opens Bucharest office

Investment fund Mid Europa Partners, owner of retailer Profi, medical services provider Regina Maria, and delivery company Urgent Cargus, is opening a Bucharest office. The move is seen as an important step in consolidating the fund's activity on the Romanian market.

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Net investment up

The value of net investment in the national economy increased by 12.1% in the first half of this year, reaching RON 39.68 billion, according to data released by the National Statistics Institute (INS). New construction work surged 30.3%, while net investment in equipment dropped 1.3%.

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Legislative News (1)

CSI to supervise defense auctions

The public institutions belonging to the defense and security fields will have to secure the approval of the Information Society Committee (CSI) before launching any IT procurement auctions worth more than EUR 500,000. The decision is featured in a draft bill released by the Ministry of Communications for public debate.

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Politics (2)

PM to demand confidence vote

Prime Minister Viorica Dancila announced on Monday that she would go before the Parliament for a vote of confidence next week. The PSD leader said she hasn't decided yet whether the vote would be on a Cabinet restructuring or reshuffling.

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Cabinet could approve diaspora voting registration extension on Wednesday

The Cabinet could adopt at Wednesday's meeting the decree extending the process of registering diaspora Romanians for voting in the upcoming election.

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Social (1)

Why do young people leave?

A survey commissioned by Europa FM and conducted by IMAS has revealed the reasons why young Romanians leave the country. While most respondents (61.2%) would advise young people against leaving, 31.3% say corruption and lack of trust in the authorities is the main reason for moving abroad.

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