News

Daily Newsletter - 20 February 2019

Summary

Macroeconomic News (2)

BCR director said stock market could help close gap separating Romanian economy from Western Europe

Gabriel Pralea, Regional Corporate Director at BCR, said stock market listings and IPOs could help close gap separating the Romanian economy from Western Europe. "We are lagging behind the other European countries. The Bucharest Stock Exchange could be a solution. Entrepreneurs must be as flexible as possible when looking for financing," said Pralea.

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58,800 jobs vacant last year

The annual average number of job vacancies in the national economy, an indicator of the labor shortage, fell by 4,900 in the last quarter of last year, dropping to 58,800 on a quarterly basis, according to data released by the National Statistics Institute (INS) on Tuesday. Compared to the corresponding quarter of 2017, the vacancy rate was up 0.07 percentage points.

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Financial News (4)

National banking system logged RON 7.17 billion in 2018 earnings

The national banking system logged an aggregated RON 7.17 billion worth of 2018 earnings, up 35% from the previous year, according to the National Bank of Romania (BNR). The solvency indicator was 19.63%, far above the 8% threshold.

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Cabinet approves Prima Casa budget

The Cabinet approved yesterday the total guarantee ceiling for the "Prima Casa" program in 2019. The program's budget will be RON 2 billion. The amendments designed to make the program more "social", as promised by Minister of Finance Teodorovici, were not introduced at the Cabinet meeting.

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Bankers met with Senate leader

Senate President Calin Popescu-Tariceanu told the representatives of the Romanian Banking Association (ARB), who had come to the Parliament on Tuesday to discuss Decree 114, that lawmakers are open to talks. Senator Daniel Zamfir (ALDE) wrote on his Facebook page that Tariceanu had told bankers that the asset tax would not be repealed.

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BNR replies to Valcov accusations

In the first 19 days of February, the average 3M and 6M ROBOR rates were below the average value of actual transactions, which would have pushed up the value of installments if the transaction average was used to calculate the ROBOR rate, according to the BNR spokesman.

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Investment News (1)

Alexandru Tiron to invest EUR 10 million in residential project

Alexandru Tiron, a construction engineer, is investing EUR 10 million of his own money plus bank loans in a residential project located in Bucharest's Militari neighborhood. The Yola Residence project will feature 223 flats and will be completed by the spring of 2021.

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Legislative News (2)

Children aid increased via decree

The state budget amendment increasing the aid provided to children was passed through a decree adopted by the PSD Cabinet on Tuesday. The measure will come into force on March 1.

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Judiciary rules changed by new decree

The Dancila Cabinet adopted yesterday a decree amending and completing Law 303/2004 regulating the activity of judges and prosecutors, Law 304/2004 on judiciary organization and Law 317/2004 regulating the Superior Council of Magistrates (CSM).

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Politics (1)

PSD leadership held tense meeting

The Social Democratic Party (PSD) held a high level meeting in order to nominate two members for the Development and Transport portfolios. Among the party members likely to be nominated were Daniel Suciu and Razvan Cuc.

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Social (2)

Almost 40% of labor contracts pay minimum salary

The number of full-time work contracts increased by 4.09% between October, 2017, and October, 2018. The total number of full-time contracts was 5.4 million at the end of October, 2018, according to employer group PIAROM. 14% of these contracts paid a gross salary close to the minimum national salary.

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Medical unions threaten general strike

The SANITAS Federation announced that medical workers will hold protest pickets this week, followed by a rally in Bucharest on April 4. The workers demand higher salaries and bonuses, while accusing the authorities of issuing contradictory and unclear regulations.

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