News

Daily Newsletter - 13 February 2018

Summary

Macroeconomic News (4)

Primary energy resources up 3.3% in 2017 

Romania's primary energy resources increased by 3.3% in 2017, while electricity resources dropped 3.4%, compared to 2016, according to a press release issued by the National Statistics Institute (INS). The main primary energy resources amounted to 34,291 thousand tons of oil equivalent, up 1,101 thousands tons from 2016.

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Industrial production climbed 8.2% in 2017 

Data released by the National Statistics Institute (INS) yesterday showed that the industrial production was up 8.2% in 2017. The manufacturing sector had a decisive contribution of 8.9%, while the mining, oil and gas extraction industry expanded 5.9%. Banca Transilvania's experts see the positive trend consolidating in the short term.

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CFA Romania sees weaker national currency, rising inflation and interest rates 

The members of CFA Romania reported a higher level of confidence in the future macroeconomic situation. On the other hand, the same experts see the national currency depreciating above RON 4.7 per EUR, pushing the three-month ROBOR rate close to 3% in the next 12 months, especially since the inflation rate has already exceeded BNR's forecast.

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Automotive business up 11.1% last year 

The turnover of car and motorcycle dealers and vendors increased by 11.1% in 2017, a lower growth rate than in 2016. The services provided to clients jumped 15.5%, according to data released by the National Statistics Institute (INS) on Monday. Car sales were stimulated by the elimination of the pollution tax for used cars on February 1, 2017.

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Financial News (3)

ROBOR rate jumps to 2.06% 

The three-month ROBOR rate increased from 2.04% to 2.06%, according to the National Bank of Romania (BNR). The three-month rate is used to calculate the adjustable interest rates of most RON-denominated loans. The six-month rate followed the general trend, climbing from 2.34% to 2.36%.

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Real yields on savings 

Form 600 demands that tax-payers must declare their revenues from interest and other non-salary sources, provided that they exceed RON 22,800 per year. However, interest revenues are a problem given that six banks actually charge money for deposits. 

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Banks issued more than RON 31 billion worth of new loans in 2017 

Banks issued RON 31.4 billion worth of new loans in 2017, up 7% from the previous year and close to the RON 34.6 billion peak reached in 2007, according to data released by the National Bank of Romania (BNR). Approximately 60% of all new retail loans went to consumption. Consumer borrowing increased by 5.6% last year.

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Legislative News (1)

MPs want to bring back state notaries 

MPs belonging to the majority coalition have filed a bill designed to set up state-owned notaries that would charge less for their services. This initiative seems to ignore the fact that a similar bill was rejected more than a year ago and that the Ministry of Justice and the organization representing the notaries public oppose the project.

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Politics (2)

PM Dancila says Romania should become regional arms producer 

Prime Minister Viorica Dancila stated after Monday's meeting with US ambassador Hans Klemm that she had raised the issue of "having Romania become a regional arms producer". "It was a very good meeting, a topical meeting. We discussed various issues regarding Romania. We spoke about the OECD and US support for Romania's accession," said Dancila.

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Basescu says commission report is bad for democracy 

Traian Basescu, leader of the People's Movement Party (PMP), told the Chamber of Deputies and the Senate that the report released by the commission tasked with investigating the presidential election of 2009 undermines public trust in the Parliament because it contains false information.

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