Daily Newsletter - 16 April 2018


Macroeconomic News (4)

National economy overheating 

The national economy is overheating by every definition, according to Ionut Dumitru, President of the Fiscal Council. The National Statistics Institute (INS) announced that the annual inflation rate had reached 5% in March. "We are facing a very rapid increase of the inflation rate, which went from below zero to 5% in one year. The trade balance deficit has also risen quickly and continues to rise," said Dumitru.


83% of analysts see weaker RON, higher interest rates 

Most of the analysts polled by CFA Romania expect the national currency to depreciate and the interest rates to rise, according to the survey conducted for the Macroeconomic Confidence Indicator in March. The indicator gained 0.9 points last month, reaching 47.6 points. However, the indicator was down 9.2 points year-on-year.


Cost of borrowing up significantly 

The market yield of Romania's ten-year state bonds was 2.97% in September, 2016, 2 base points below the Magyar state bonds. At the same time, long-term bonds were only 7 bps above the Polish bonds. Today, the Romanian government pays 4.61% on ten-year bonds, almost twice higher compared to Hungary, according to the latest data from Erste Group Research (EGR).


Public debt up EUR 1.3 billion in two months 

Romania's public debt jumped EUR 1.29 billion in January and February, climbing to EUR 34.82 billion, according to data released on Friday by the National Bank of Romania (BNR). The total foreign debt gained EUR 1.56 billion over the same period, surging to EUR 95.04 billion. The long-term foreign debt amounted to EUR 69.5 billion.


Financial News (3)

BNR to issue anniversary coin 

The National Bank of Romania (BNR) will issue today a gold coin celebrating the 330th anniversary of the printing of the Bucharest Bible, according to a press release. The coin will have a nominal value of RON 100.


Current account deficit up almost 139% last year 

The current account of Romania's balance of payments showed a EUR 172 million deficit for the first two months of this year, compared to EUR 72 million in the corresponding period of 2017, according to data released by the National Bank of Romania (BNR) on Friday. The total foreign debt increased by EUR 1.55 billion over the same two months.


Banca Transilvania launched online loan 

Banca Transilvania launched the Online Loan. Clients can apply for up to EUR 5,000 for personal projects from their own homes and the bank promised an analysis and approval period of up to 24 hours. The loans carry a flat interest rate and mature in one to five years.


Investment News (1)

RATB offers EUR 30 million contract 

The Bucharest Transport Company (RATB) started on Thursday a RON 135 million auction for the contract for modernizing between 3 and 50 trams belonging to the V3A-M model. The company expects to sign around five subsequent contracts, with 3-12 trams allocated per contract. The bids will be opened on August 16.


Legislative News (1)

New bill would force diaspora Romanians to justify remittances exceeding EUR 1,000 

The Minister of Finance, Eugen Teodorovici, stated that the bill forcing diaspora Romanians to justify remittances exceeding EUR 1,000 cannot pass without a thorough analysis of its effects. The bill was drafted in January by the National Office for Prevention and Control of Money Laundering (ONPCSB).


Politics (2)

PNL leader says President decision is known 

Ludovic Orban, leader of the National Liberal Party (PNL), said at a press conference held in Brasov on Sunday that President Iohannis's decision on the request to sack DNA head Kovesi is "the chronicle of a known decision". Orban added that the reasons put forward by the Minister of Justice are "groundless".


Orban accused PSD-ALDE of stealing Romania's future 

The public debt jumped EUR 5.5 billion in 2017 and "all the money was squandered on pork barrel actions", according to Ludovic Orban, leader of the National Liberal Party (PNL). "PSD-ALDE is stealing even our future. The public debt increased by EUR 5.5 billion in 2017. And PSD didn't even build something, a highway, a new hospital, a new plant, a new railroad, a new hydro power plant, something," said Orban.