News

Daily Newsletter - 20 August 2019

Summary

Macroeconomic News (3)

EUR 26.8 million for fruit processing

The Rural Investment Financing Agency (AFIR) launched a call for financing requests under submeasure 4.2a - "Investment in the Processing/Marketing of Pomiculture Products", part of the 2014-2020 National Rural Development Program (PNDR). The budget for this call is EUR 26.8 million.

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Footwear exports stagnated in decade

Romania exported shoes worth USD 1.1 billion in 2018, similar to the previous year. Footwear made in Romania goes West, while local consumers buy mainly shoes made in Poland and China. "Romania is one of the biggest footwear producers in the European Union, but exports have stagnated in the past decade," said World Footwear analysts.

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Annual inflation rate reached 4.1%

The annual inflation rate reached 4.1% in July, almost three times the EU average. It was the highest inflation rate in the EU for the seventh consecutive month. Hungary, Latvia and Slovakia also reported inflation rates of at least 3%.

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Financial News (3)

OTP paid RON 15.5 million for Mobiasbanca stake

BRD-Groupe Societe Generale sold its 2 million Mobiasbanca shares to Hungarian group OTP for RON 15.5 million. Parent group Societe Generale also sold 76.69% of Mobiasbanca to OTP for the equivalent of almost EUR 60 million. The transactions were registered with Moldova's stock market on July 22.

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Banca Transilvania loans went to commerce, production and real estate

Most of the corporate loans granted by Banca Transilvania went to companies operating in commerce, production and real estate. Corporate loans amount to RON 18.3 billion, 48.5% of the bank's portfolio. The three sectors accounted for RON 9.5 billion worth of loans in June, up 2.2% since the end of 2018.

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Non-banking financial system is stable

The non-banking financial system reported robust stability for the first quarter of this year, with no significant risks with systemic implications reported, according to Leonardo Badea, head of the Financial Supervisory Authority (ASF).

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Investment News (1)

Three companies to modernize Ungheni-Tarnaveni road

Dimex-2000 Company, OPR Astfalt, Oblas Public Y Regadios, and Explan have landed a contract worth approximately EUR 22.4 million for designing and implementing the modernization project of county roads DJ151B and DJ142, which link Ungheni, Mica and Tarnaveni, in Mures county.

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Politics (2)

President Iohannis in second White House visit

President Klaus Iohannis departed for the United States on Monday. He will be received at the White House by President Donald Trump. This is the second visit for Iohannis at the White House. Energy, visas and defense are expected to be the main topics on the agenda.

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PM Dancila to meet future EC president in Brussels

Prime Minister Viorica Dancila will meet on Tuesday in Brussels with the future president of the European Commission, Ursula von der Leyen. The two officials are likely to discuss Romania's commissioner portfolio, as well as the nominations put forward by Bucharest for this position.

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Social (1)

Romania ranks fourth in EU violent death index

Romania ranks fourth in the European Union's violent death index, with 1.55 deaths per 100,000 residents. The only countries exceeding this figure are the three Baltic states.

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