Daily Newsletter - 11 March 2019


Macroeconomic News (3)

New fiscal and budget strategy: 2.76% deficit

The Ministry of Finance (MFP) published a new fiscal-budget strategy for 2019-2021. The new strategy features a state budget deficit of RON 28.2 billion, the equivalent of 2.76% of the GDP. The estimated GDP stayed at RON 1,022 billion, along with the 5.5% economic growth rate and the RON 342 billion worth of expenses.


Electricity trade showed EUR 90 million surplus in November, 2018

Romania exported electricity worth EUR 210.6 million in the first 11 months of 2018, while imports amounted to EUR 120.8 million, according to data centralized by the National Statistics Institute (INS). The value of exports decreased by 14.9%, while in the case of imports, there was a decrease of 34.8% compared to January-November, 2017. In these conditions, Romania's surplus in international trade in energy Electricity amounted to EUR 89.8 million.


MFP issues revised FSDI project

The Sovereign Development and Investment Fund (FSDI) will be established with an equity of RON 19 billion. The fund's portfolio will feature 28 companies, including Hidroelectrica, Romgaz and Petrom. The equity will be made of RON 9 billion worth of cash, plus stakes in the 28 companies worth RON 10 billion.


Financial News (3)

BNR says reserve management policy focuses on security and liquidity

The main objectives pursued by the National Bank of Romania (BNR) in the management of the international reserves are security and liquidity rather than revenues from interest, according to Dan Suciu, the BNR spokesman.


Daniela Iliescu to be new CEO of Patria Bank

The Patria Bank board of directors has appointed Daniela Iliescu as the new CEO, starting with April 1, according to a press release. After more than 10 years with the Patria Bank group, Bogdan Merfea will step down in favor of Iliescu.


BNR analyzed Decree 114 impact on economy

The bank asset tax could lead to a contraction of the national economy by 1.2 -1.7 percentage points in 2019-2020, according to the impact study conducted by the National Bank of Romania (BNR) and allegedly presented by First Deputy Governor Florin Georgescu to Liviu Dragnea, President of the Chamber of Deputies, on Thursday. Excerpts of the study were posted on the social networks by Senator Florin Catu (PNL).


Investment News (1)

Net investment up slightly

Net investment in the national economy totaled RON 84 billion last year, up 0.8% compared to 2017, according to provisional data released by the National Statistics Institute (INS) on Friday. Investment in new construction works decreased by 8.4% to RON 36.4 billion, while investment in tools, including vehicles, grew by 8.4% to RON 35.3 billion.


Legislative News (1)

Cabinet to amend Decree 114

Liviu Dragnea said on Saturday that in the second half of this month the government could adopt adopt amendments to Decree 114/2018, after finding solutions acceptable to banks, energy companies and telecoms.


Politics (2)

ICCJ rejects BEC decision, allows USR-PLUS alliance to run

The judges of the High Court of Cassation and Justice voted in favor of the USR-PLUS 2020 Alliance, according to PLUS leader Dacian Ciolos.


Ludovic Orban: "Dragnea and Tariceanu are destroying the economy"

Ludovic Orban, leader of the National Liberal Party (PNL), said the PSD-ALDE alliance is "seemingly operating according to a plan drafted by Romania's enemies in order to wreck the national economy". Orban added that the establishing of the Sovereign Investment and Development Fund (FSDI) is a "mega-swindle".


Social (1)

Farmers who hire young people to get RON 500-1,000 per month

Farmers who hire at least two young individuals will receive monthly financial aid from a program worth RON 30 million, according to a draft bill released for public debate by the Ministry of Agriculture. Employers will receive RON 1,000 per month for every graduate of superior or specialized education they hire, RON 750 for vocational training graduates and RON 500 for uneducated individuals.