News

Daily Newsletter - 13 February 2019

Summary

FIC (2)

The President of the Foreign Investors Council: „Decree 114 is toxic for business”. On demonizing the companies with foreign ownership: "It’s an opportunistic game of looking for scapegoats"

Franz Weiler, the President of the Foreign Investors Council (FIC), in an interview with G4Media.ro, said that the government's adoption overnight of the emergency decree (OUG) 114 is "toxic for long-term planning and it worries investors." Mr. Weiler points out that the independence of the National Bank is „an absolute necessity” and speaks of the need for a free and independent justice.

Top

Ramona Jurubita, CDR Coordinator in H1 2019: My mandate has begun under the auspices of legislative changes that were not subject to any consultation with the business environment, but which profoundly affected important fields of economy

At the end of January, Coalitia pentru Dezvoltarea Romaniei (Coalition for Romania’s Development - CDR) sent a letter to all the institutions with a legislative or regulatory role in Romania, with the request to re-examine the pertinence of the measures provided by the Government’s Emergency Ordinance no.114/2018. In support of this request, CDR has presented details from the perspective of the most important affected fields, such as the energy, telecommunications, the banking system or the private pension system, as well as of the impact at the citizens' level.

CDR: A dialog has started regarding Decree 114


Top

Macroeconomic News (3)

Industrial turnover up

The turnover of industrial companies increased by 11.8% in 2018, compared to the previous year, rising steadily over 2017, according to data released by the National Statistics Institute (INS) on Tuesday. In 2017, the industry's total turnover (domestic and foreign markets) increased by 11.7%, in nominal terms, compared to 2016.

Top

Foreign trade alert

The trade deficit was EUR 1.71 billion in December, 2018, down from the previous month but the second weakest monthly performance last year. More worryingly, the growth rate of exports fell to just 2.4%, the lowest value in 2018 and well below the cumulative 12-month rate, standing at 8.1%. The monthly import growth rate exceeded the growth of exports, pushing the exports down to 85.3% of imports.

Top

Budget bill rammed through Parliament

The state budget for 2019 seems to be heading for the same fate as the Criminal Code and the Criminal Procedure Code. The PSD-ALDE coalition wants the Parliament to hold the final vote on the state budget and social security budget on Friday, February 15. In order to meet the deadline, the Parliament has stopped discussing all other bills.

Top

Financial News (4)

Georgescu, BNR: We are looking into a possible modification of the ROBOR calculation method

The National Bank of Romania (BNR) is considering a possible modification of the ROBOR calculation method, according to First Deputy Governor Florin Georgescu. The statement was made at Tuesday's Senate hearings. Governor Isarescu and the entire BNR board of directors were questioned by the Senate's Economy and Budget commissions regarding the ROBOR rate.

Top

Mugur Isarescu: Three things need to be done to bring ROBOR down

The interest rates cannot fall unless the budget deficit, the foreign trade deficit and the inflation rate fall, according to statements made by Mugur Isarescu, Governor of the National Bank of Romania (BNR), at Tuesday's Senate hearings. "The deficits must be reduced. You're discussing the budget. Take the deficit to 1%. We are economists and we must say what can be done and what can't," said Isarescu.

Top

Raiffeisen Bank launches 100% online loans

Raiffeisen Bank, the fourth largest bank of the local market, is offering a new loan that can be accessed 100% online. The processing and approval procedure takes about 10 minutes, according to information provided by the bank.

Top

Tariceanu: "Banking intermediation is very low"

Calin Popescu-Tariceanu, President of the Senate, said banking intermediation is too low in Romania and that banks prefer to buy state bonds instead of financing companies.

Top

Investment News (2)

Investment in irrigation system to continue

"This year we have approximately RON 600 million for irrigation systems and we have 40 investment projects currently under construction, and we are opening another 30, so that's a total of 70 investment projects. If you want to know we have exactly the counties and the localities so we can reach in 2020 an area of 2 million hectares that can be irrigated. And right now, out in the country, people are actually working on the investment projects," said Minister of Agriculture Petre Daea.

Top

Electrica to invest less in grid

Electrica will invest a total of RON 608 million in the power grid this year, 35% less compared to 2017, but still 43% above the mandatory level imposed by the Romanian Energy Regulatory Authority (ANRE), according to CEO Corina Popescu.

Top

Politics (2)

Melescanu: Tariceanu is a formidable politician, he would make a solid candidate

The Minister of Foreign Affairs, Teodor Melescanu, said on Tuesday that ALDE leader Calin Popescu-Tariceanu is "one of the formidable politicians, who did not come out of nowhere," and who would make one of the most solid candidates in the upcoming presidential election. Melescanu added that an alliance with the PSD would be the best solution.

Top

Olguta Vasilescu withdraws nomination

Olguta Vasilescu, the former minister of labor nominated for the position of minister of development, announced yesterday that she had withdrawn from the nomination process "after a discussion with Liviu Dragnea".

Top

Social (1)

Number of children born in Romania at 100-year low

The number of children born in Romania last year was 188,755, the lowest figure since 1918. Last year, Romania celebrated the 100th anniversary of the Grand Union. Excluding 1918, a year when Romania was still at war, along with 1916, 1917 and the war years 1941-1945, last year's birth rate was the lowest in the country since 1871.

Top