Daily Newsletter - 11 July 2018


Macroeconomic News (5)

"Fiscal revolution" lowered incomes of 1.2 million employees

Only approximately 50% of all local employers compensated their employees for the revenues lost through the social contribution transfer process, while 24% of employers did not compensate even one employee, according to the National Labor Bloc (BNS).


Exports up 8.8% in five months

Romanian exports jumped 8.8% in the first five months of this year, reaching a total of EUR 28.09 billion. Meanwhile imports amounted to EUR 33.09 billion, up 9.3% on annual basis, according to the National Statistics Institute (INS). The trade deficit was EUR 4.45 billion.


SMEs account for only 40% of exports

Small and medium-sized enterprises account for less than 40% of Romania's exports, which amounted to EUR 62 billion last year. At the same time, SMEs account for 99% of all the companies operating in the country, according to calculations based on figures released by the INS. 1,800 big companies are responsible for almost 60% of exports.


Romanian purchasing power is fourth lowest in EU

Actual individual consumption in Romania is 68% of the EU average. This indicator tracks the purchasing power of households. Hungary, Croatia and Bulgaria are doing worse than Romania, according to Eurostat.


Budget deficit to stay below cap

This year's budget deficit will certainly stay below 3% of the GDP, in accordance with the European Union's treaties, according to Deputy Prime Minister Viorel Stefan. The official added that investment is a priority for the Government this year.


Financial News (3)

EximBank logged EUR 162 million in factoring operations

EximBank reported factoring operations worth close to EUR 162 million for 2017, the third consecutive year of accelerated growth. Last year, EximBank clients tended to favor no regress export factoring, which puts all the risk on the factoring firm or the insurer.


Banca Transilvania says first clients reactions positive

The first reactions to the conversion offer made to the 2,300 former Bancpost clients whose loans are denominated in Swiss francs were positive, according to Omer Tetik, CEO of Banca Transilvania. The former Bancpost clients have until August 31 to decide whether to accept the conversion offer, which includes an 18% reduction of their principals.


Romanian banking system's parameters above EU average

The prudential indicators tracking the solvency, profitability and balance sheet structure of the national banking system are above the EU average, while the quality of assets continues to be a problem because of the high number of loans that are either non-performing or being restructured, according to the National Bank of Romania (BNR). The solvency indicators show the banking system is well capitalized.


Legislative News (1)

President signs bill allowing clients to connect to Transgaz

President Klaus Iohannis signed on Tuesday the decree promulgating the amendments to Law 123/2012. The amendments allow industrial clients to connect directly to Transgaz's system, bypassing all middlemen.


Politics (2)

Dan Barna asks Laura Kovesi to join USR

Dan Barna, President of the Save Romania Union (USR), announced that he had invited Laura Kovesi, the outgoing head of DNA, to join the party. Kovesi answered that she appreciated USR's support, but that she would think about the proposal. Barna hinted that Kovesi would make a good presidential candidate.


Dancila presented latest developments in "judiciary reform"

Prime Minister Viorica Dancila met with the European Commission president in Brussels on Tuesday. The Romanian official presented the latest developments in "judiciary reform" and restated the country's commitment to seeing the MCV program through.


Social (2)

Demographic decline worsened in May

Romania's population continued to shrink in May, when the number of residents fell 5,623, up 63.5% compared to the corresponding month of 2017, according to data released by the National Statistics Institute (INS).


Trust in Parliament at 14%

The Parliament and the political parties are the institutions that Romanians trust less, according to a CURS survey conducted between June 23 and July 1. Trust in the Parliament dropped 9 pp to 14%, while trust in the judiciary rose to 34%.