News

Daily Newsletter - 2 October 2019

Summary

Macroeconomic News (3)

Postal services market up 13%

The value of the postal services market reached RON 3.2 billion last year, up 13% compared to 2017, according to the National Authority for Management and Regulation in Communications (ANCOM). The number of complaints received by service providers jumped 14% to 561,000. More than 35,000 complaints were accepted and the providers paid RON 9.7 million in total compensations.

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BT's macroeconomic estimates

"Romanian reforms were undertaken only when forced by financing problems. Without structural reforms, the current account deficit will pass 5% of the GDP in the coming years," said Andrei Radulescu. Banca Transilvania, the biggest lender in the country, expects inflation to consolidate around 4% this year, before falling toward 3%.

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Foreign investment passes EUR 80 billion

The total value of foreign investment in Romania's economy increased to EUR 81.12 billion last year, up approximately EUR 5.5 billion from the end of 2017. However, the figure is slightly below 40% of GDP, down from the peak 41.15% reported for 2017.

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Financial News (3)

Interest rates could increase in Q4, 2019

The reference rate used to calculate the adjustable interest rates of consumer loans (IRCC), increased from 2.63% to 2.66%. The new rate will apply to loans granted in the fourth quarter of this year.

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BNR foreign currency reserves down EUR 196 million

The National Bank of Romania (BNR) announced that its foreign currency reserves amounted to EUR 35.42 billion at the end of September, down from EUR 35.61 billion at the end of August. The total reserves managed by BNR reached EUR 39.96 billion.

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BRD pays 0% interest on deposits

About one month after Raiffeisen Bank's decision to stop offering EUR-denominated deposits to retail and SME clients, BRD-GSG pays 0% interest on EUR-denominated retail deposits. Some banks offer higher losses compared to the 0% interest rate banks.

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Investment News (1)

Maribel Prodcom invests EUR 1.8 million in plant

Maribel Prodcom, a food vendor from Uricani, Hunedoara county, will invest EUR 1.8 million in a processing plant for fruit and vegetables grown in the mountain regions. European funds will cover half of the project's cost. The products will be sold in the company's four Hunedoara stores, as well as in Craiova and Bucharest, with the help of partners.

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Legislative News (1)

Senator Zamfir's new bill reported out favorably

The Senate's Economy, Industry and Services Commission reported out favorably on Tuesday the new bill drafted by Senator Daniel Zamfir (ALDE), which allows debtors to sell goods bought via leasing contracts in order to extinguish their debts to leasing companies. The bill also caps the fees that can be charged when terminating a leasing contract.

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Politics (2)

Opposition parties file motion of censure

The motion of censure against the Dancila Cabinet was submitted to the Parliament on Tuesday. The motion was signed by 237 MPs from PNL, USR, PMP, PRO Romania, ALDE, UDMR, and the ethnic minorities. More surprisingly, Senator Ioan Talpos and Deputy Marius Bota, both from the Social Democratic Party (PSD), joined the motion.

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PNL's Orban says Nica has no chance

Ludovic Orban, leader of the National Liberal Party (PNL), said Dan Nica has absolutely no chance of being appointed to the European Commission. Orban added that Romania could lose its seat on the Commission or, at best, receive a meaningless portfolio.

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