News

Daily Newsletter - 13 October 2017

Summary

Macroeconomic News (4)

Tudose: "IMF has reviewed the economic growth forecast for Romania from 4.2% to 5.5%" 

Prime minister Mihai Tudose announced, yesterday, in the Government session, that the International Monetary Fund had reviewed the economic growth forecast for Romania from 4.2% to 5.5%, for this year, saying it had happened probably due to the "strong signal" given by Trade Winds as well, in which US companies will do business in Bucharest with Romanian companies. "A good news from IMF, it seems that the discussion I had with them was good. They reviewed from 4.2% to 5.5% Romania's economic growth forecast", prime minister Mihai Tudose stated, cited by News.ro.

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Inflation reaches levels unanticipated a few months ago: plus 1.8% in September and a maximum of 2 years 

"Inflation rate increases because Dragnea-Tudose and Dragnea-Grindeanu governments threw with money over an economy that was already growing by 5% per year and with a minimum unemployment rate. You added oil to the fire". Consumption prices had risen 1.8% in September compared to September 2016, the National Institute of Statistics announced yesterday. In August, the average annual inflation rate was 1.2%, down compared to 1.4% in July. The rise was 0.5% in September 2017 compared to August.

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Romanian industry produced 10.3% more in August 

Industry, a sector accounting for nearly one quarter of the Romanian economy, recorded a 10.3% growth in production in August compared to the same month of last year, sustained by the increase in the extractive industry and in the processing industry, the data published Thursday by the National Institute of Statistics (INS) show.

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APIA makes payments for several state aid schemes, until 16 October 

The Payment and Intervention for Agriculture Agency (APIA) makes a series of payments in beneficiaries' accounts, through several payment schemes, until 16 October, a communication sent by Agerpres Thursday shows. Thus, RON 148,533,233 will be paid as state aid for reducing the excise in the gas oil used in agriculture in the second quarter of 2017, for 16,646 beneficiaries and an overall quantity of gas oil of 104,711,184.273 liters.

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Financial News (5)

The Ministry of Finance - the third funding failure on the internal market, in one week. Banks do not renounce yields 

The relation between the Ministry of Finance and banks tends to turn into a war of nerves after the ministry rejected Thursday the offers received within the auction for an issuance of discounted treasury certificates for 12 months, whereby it intended to attract RON 600m. This is the third successive auction in which the Ministry of Finance dismisses wholly the sent purchase offers, considering them at an unacceptable level of the yield.

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3-month Robor rose up to 1.82%, the highest level in the past three years 

3-month Robor, basing on which the interests in most loans in lei are calculated, rose today up to 1.82%, the highest level since November 2014 up to now, after it dropped twice last week, according to the data published by the National Bank of Romania NBR). The level reached today is the highest since 11 November 2014 up to now, when it reached 1.84% level, according to News.ro.

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NBR: Government's fiscal-budgetary policies amplify inflation and deficits and put pressure on the monetary policy and on interests 

An unbalanced combination of policies burdens the monetary policy excessively in inflation control, reduces its efficiency and can induce less good effects in the real economy, some members of the NBR boardroom consider. Provided this, NBR management supports the need of a balanced mixture of macroeconomic policies for protecting macroeconomic stability.

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Banca Transilvania is the leader of the card market, with 3 million issued cards. Every second, BT cards are used for 5 transactions 

Banca Transilvania (BT) is the biggest card issuer in Romania, with 3 million cards in its portfolio. At the same time, with 20% of the market, BT is the leader in the volumes traded with the card as well, according to the information provided by the company.

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Badea, Eximbank: ROBOR will remain in the area it is now in the next three months 

ROBOR will remain in the area it is now in the next three months, but a decrease will take place by January, but not at the anterior level, Dorin Badea, executive director Treasury and Capital Markets at Eximbank, stated Thursday.

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Investment News (2)

Ford launches EcoSport production in Craiova. The overall investment in Romania reaches more than 1.2bn euros 

Ford has started the production of EcoSport SUV officially at the plant from Craiova, increasing the overall investments in Romania at about 1.2bn euros, since the takeover of the plant in 2008. The employed staff grows by nearly 1700 people up to 4300 by the end of the year, exceeding the number of employees for the first time since the takeover.

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Alro invests 190m dollars by 2021 for increasing energetic efficiency 

Alro SA, the biggest aluminum manufacturer in the continental Europe (excluding Russia and the Scandinavian Peninsula), announced Thursday that its business plan for 2017-2021 provides overall investments worth more than 190m dollars, out of which over 100m dollars in energetic efficiency projects.

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Politics (2)

Prime minister Tudose says he will resign anytime the party asks him 

The PSD leader, Liviu Dragnea, and prime minister Mihai Tudose came together Thursday at the session of PSD's National Executive Council, the head of the Government contending he will leave office anytime the party asks him to do it. Asked how the government will look like after Thursday's session, Liviu Dragnea said a 6.1% economic growth is recorded.

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Dan Barna, about USR's fall in surveys: A matter of message, which must be more open 

USR's spokesman, deputy Dan Barna, considers that the party's fall in the latest published surveys, in relation to the result achieved at the parliamentary elections from December 2016, is "just a matter of message, which must be more open".

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