Daily Newsletter - 17 May 2017


Macroeconomic News (3)

Vasilescu (BNR) says Q1 economic growth is quantity over quality 

The national economy's strong first quarter growth is quantity over quality, according to statements made by Adrian Vasilescu, adviser to the BNR Governor. The preliminary data released by the National Statistics Institute (INS) on Tuesday showed a 5.7% annualized growth rate and a 1.7% increase from the previous quarter.


Economy grew 5.7% in Q1 

The economy grew 5.7% in the first quarter of this year, far above the estimates of various analysts and financial institutions. The IMF has recently upgraded Romania's economic growth forecast for this year, raising the estimated growth rate from 3.8% to 4.2%.


National economy surged 5.7% in Q1 

Prime Minister Sorin Grindeanu hailed the preliminary data released by the National Statistics Institute (INS), which showed the Romanian economy defying estimates with a 5.7% surge in the first quarter of the year. The PM added that it's the government's job to make sure that all Romanians feel the effects of this significant growth.


Financial News (4)

BNR governor urged Romanian banks to be more active in Moldova 

Mugur Isarescu, Governor of the National Bank of Romania (BNR), has urged the commercial banks operating in Romania to be more active in the Republic of Moldova, given the completion of a twinning project implemented by BNR and De Nederlandsche Bank. The project had received EUR 1.2 billion in financing from the European Union and its purpose was to shore up the Moldavian National Bank's regulatory and supervisory capacity.


BNR Governor: "S&L banks are necessary" 

"The savings&loans banks are necessary to our economy," according to Mugur Isarescu, Governor of the National Bank of Romania (BNR). The only S&L banks operating in Romania - Raiffeisen Banca pentru Locuinte (RBL) and BCR Banca pentru Locuinte (BCR BpL) - are currently involved in a lawsuit against the Court of Accounts. Governor Isarescu wants the national real estate market to stop being dependent on the Prima Casa program.


ARB has rebranded itself and wants financial education in schools 

The banking sector wants financial education added to the curriculum as a mandatory study in an attempt to drive economic growth. The Romanian Banking Association (ARB) has put together an economics manual and is discussing the issue with the Ministry of Education.


ARB: 80% of SMEs have never taken out bank loans 

The low borrowing rate of SME clients is a demand problem, according to Florin Danescu, executive president of the Romanian Banking Association (ARB). "The universe of SMEs that banks can finance is relatively small in Romania," said Danescu.


Legislative News (2)

Parliament passes MTPL bill 

The bill features the calculation method for MTPL reference premiums, the definition of high-risk clients and the ways such clients can be insured, as well as details regarding direct settlement.


Students to be paid scholarships during holidays 

The students who are awarded scholarships will see them extended to include the holiday months, according to an article of the bill accompanying Emergency Decree 2/2017. The bill was passed by the Chamber of Deputies on Tuesday.


Politics (1)

Viorel Catarama runs for PNL head 

Businessman Viorel Catarama is running for head of the National Liberal Party (PNL). The businessman said his start was "slightly better than Donald Trump's" and that, should he win, the party would back homosexual marriage and adoptions.