News

Daily Newsletter - 14 August 2019

Summary

Macroeconomic News (4)

BNS says budget revision superficial

The true budget revision will be conducted in November, according to the National Labor Bloc (BNS). The organization's representatives warned that kicking the can down the road for two more months is an unjustified and dangerous delay for the stability of the state budget.

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Foreign debt up

Romania's total foreign debt increased by EUR 4.25 billion in the first six months of this year, reaching a total of EUR 103.67 billion, according to data released by the National Bank of Romania (BNR) on Tuesday. The public debt jumped more than EUR 3.2 billion to EUR 37.98 billion, a 9.26% increase.

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Manufacturing reports 9.5% drop in new orders

The manufacturing sector reported a drop in new orders for June, the first drop since July, 2016, according to a report from the National Statistics Institute (INS). The nominal contraction rate is 2.8% compared to June, 2018, and 9.5% compared to May, 2019.

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Food prices drive inflation

Statistical data showed that the consumer price index reached 4.1% in July, driven mainly by a 5.15% increase in food prices. Non-food goods saw their prices go up 3.4% year-on-year, while services were 4.11% more expensive.

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Financial News (3)

BCR to launch new product

BCR is poised to launch a new protected capital product that lets clients invest in the funds managed by Erste Asset Management. BCR announced that approximately 1,000 retail clients accessed structured bonds in 2018, a seven-fold increase compared to 2017. The total volume of transactions exceeded EUR 26 million last year.

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Current account deficit worsens

The current account deficit increased by almost 30% in the first half of this year, compared to the corresponding period of 2018. The current account of the trade balance showed a EUR 5.13 billion deficit at the end of June, up from EUR 3.71 billion in the first half of 2018.

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OTP Bank posts RON 54 million in H1 earnings

OTP Bank reported almost RON 54 million in earnings for the first six months of this year, up 164% on an annual basis. The value of performing loans increased by 17% year-on-year, driven by strong growth from mortgages, SME loans and corporate loans.

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Investment News (2)

Arctic begins production at Ulmi plant

Arctic, the home appliances maker controlled by Turkish company Arcelik, has started manufacturing washing machines at Ulmi, Dambovita county. The new plant was built and equipped at a cost of more than EUR 100 million. Arctic's turnover is expected to approach EUR 1 billion when both plants operated by the company reach their maximum output.

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Minister of Tourism signs financing deal

The Minister of Tourism, Bogdan Trif, signed on Tuesday the financing contract for a marina that will be built on the Borcea arm of the Danube. The marina is part of the Borcea Arm-Calarasi Tourism Development project. according to a press release. The funds will be used for the marina itself, along with an office building, plus retail space and two conference halls.

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Politics (2)

Tariceanu won't be part of "impotent government"

Calin Popescu Tariceanu, President of ALDE, told Mediafax that he did not agree with the Cabinet reshuffling proposed by Prime Minister Viorica Dancila. According to Tariceanu, the Cabinet is currently moving forward out of sheer inertia and the situation requires the Prime Minister to make a show of strength.

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President Iohannis to talk to Trump about Exxon, soldiers and visas

President Klaus Iohannis will meet with US President Donald Trump on August 20. Among the major topics are energy security and the Visa Waiver program. "There are very important matters that need to be discussed and reiterated: the Strategic Partnership, security aspects, NATO and the 2% of the GDP, the growing economic relationship, the energy relationship. There will be talks about army equipment, the fact that we're together in Afghanistan, as well as unsolved problems, such as the Visa Waiver," said President Iohannis.

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