Daily Newsletter - 2 October 2017


Macroeconomic News (5)

WAVE OF MARKUPS AS OF 1 OCTOBER: Electricity, gas, fuel and foods mark up, as well as installments 

The electricity and gas bills, as well as the fuel prices will increase again as of 1 October, which will cause a chain wave of markups for the most products and services, notably for foods, all these concomitantly with the increase in installments, Agerpres writes. As for the electricity price, the National Energy Regulation Authority (ANRE) has decided that there will be a RON 0.03/kWh rise for the household consumers as of 1 October. ANRE head, Niculae Havrilet, has explained for the cited agency that this means a RON 3.45 markup per month for a medium consumption of 100 kWh.


State secretary: The surface of irrigated agricultural land reached 600,000 ha this year, from 200,000 ha last year 

The state secretary in the Ministry of Agriculture, Floricel Dima, stated Friday, in Galati, that if the surface of irrigated agricultural land had been 200,000 ha last year, this year, by granting water for free, it reached 600,000 ha, but without reaching the objective of 1 million irrigated hectares, which is why, within Sub-measure 4.3, on irrigation, a new condition was recently introduced, so that minimum 30% of the value of projects can be allotted to the acquisition of irrigation installations.


Markups in fuels and utilities put pressure on the rest of prices 

As of 1 October, several markups, in fuels, natural gas and electricity, entered into force. These will trigger chain price growths in the rest of the economy, in the period when loans also mark up, as a result of the rise in interbank interests. The National Energy Regulation Authority (ANRE) has announced a RON 0.03/kWh increase in electricity for the household consumers, as of 1 October. This means a RON 3.45 markup per month for an average consumption of 100 kWh, according to ANRE head, Niculae Havrilet, cited by Agerpres.


Romania imported food worth nearly 3.5bn euros in the first semester. The deficit exceeds 1bn euros 

Romania imported agri-food products worth nearly 3.5bn euros in the first semester of this year, up 17% compared to the same period in 2016, while exports brought 4.5% more in the country in the analyzed period, that is 2.432bn euros, according to the data of the Ministry of Agriculture and Rural Development.


The number of companies from Romania estimating a rise in profits in 2017 fell in the past six months 

The number of companies operating in Romania which expect a 10-20% rise in profits fell in the past six months, from 21% in the spring of this year, to only 12% in September, according to the preliminary data of a specialist study presented Friday, by Elena Badea, managing director of the consulting company Valoria, within Business Challenge 2017 conference.


Financial News (4)

Hard times for the banking system: profitability and solvency decrease by up to 1.5% as of next year 

The last simulation made by NBR basing on the financial results of the commercial banks in 2016 shows that, in 2017, along with the entry into force of IFRS 9 (new classification standards of the provisions imposed by the European Union), the solvency of the banks from the system will fall 1-1.5%. The central Bank's counts speak about the decrease in the banking system's profitability at the same time.


Robor and over-indebtedness - Bankers accuse authorities of the inflationist pressures 

Romania has the lowest level of lending in the EU, but several firms cannot borrow because regulations allow their shareholders be burdened with over debts, the bankers gathered Saturday in a conference, cited by Agerpres, noticed. On the other hand, the warnings that the period of interests at historic minimum levels is a transitory one and now risk over-indebtedness, have not been received by the population.


3-MONTH ROBOR REACHED 1.46% YESTERDAY, THE MAXIMUM LEVEL REACHED TWO YEARS AGO Isar: "Some from NBR have an interest linked to personal negotiations to push interests up" 

Lucian Isar: The loans in the national currency have an overall interest based on Robor index. Its rise is seen in the cost of the loan when the interest is reset. After 2009, the most loans granted to population were expressed in lei. In the case of deposits, an increase in Robor index is not transferred automatically in the interest received by the clients. In sum, a rise in Robor is reflected asymmetrically in the case of the two categories of clients.


NBR introduces a new regulation for the instant loans offered by NBFIs as of 1 October 

The National Bank of Romania (NBR) introduces a prudential provision for the immediate loans offered by the non-bank financial institutions (NBFIs), so that the interests to these loans may be attenuated. NBFI's will be required to increase their capital commensurate with the asked interests.


Investment News (1)

Mobexpert owner builds 1000 new apartments in Bucharest. How much they will cost 

Businessman Dan Sucu, Mobexpert owner, has initiated the residential project Arcadia Apartments in Domenii-Expoziţiei area and in the metro station Grivita area from the capital, along with builder Conarg from Pitesti, within which they will construct 1000 apartments.


Politics (2)

Kelemen Hunor and Viktor Orban have agreed on some projects targeting the interests of the Hungarian community from Romania 

UDMR and FIDESZ agreed Saturday, in Cluj, on some short-, medium- and long-term projects targeting the interests of the Hungarian community from Romania, UDMR announces after the meeting of the delegations led by Kelemen Hunor and Viktor Orban. "Within the meeting that took place Saturday in Cluj, UDMR and FIDESZ agreed Saturday, in Cluj, on some short-, medium- and long-term projects representing the interests of the Hungarian community from Romania and, at the same time, the interests of the two neighboring countries", UDMR head, Kelemen Hunor, stated.


Alexandrescu, Barna and Seidler - the candidates for the position of USR leader in the congress of 28 October 

Vlad Alexandrescu, Dan Barna and Cristian Seidler candidate for the position of USR leader, elections taking place on 28 October in Poiana Brasov.