News

Daily Newsletter - 22 February 2019

Summary

Macroeconomic News (3)

COFACE says 3.7% GDP growth rate is optimistic

At the end of last year, Coface Romania estimated an economic growth of 3.7% for 2019, but in light of the latest tax changes (Decree 114), this forecast has become an optimistic scenario, according to Eugen Anicescu, Country Manager of Coface Romania.

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MFP borrowed RON 410 million

The Ministry of Finance (MFP) borrowed RON 410 million from the commercial banks. The benchmark bonds mature in 2023 and carry an interest rate of 4.27%. According to data released by the National Bank of Romania (BNR), the banks offered a total of RON 682 million, while MFP's initial target was RON 300 million.

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Romania to launch circular economy

The Minister of Environment, Gratiela Gavrilescu, stated in Galati that 2019 is the year when the circular economy would be launched in Romania, along with the recycling industry. The Minister added that municipal waste dumps would vanish and that all waste would be recycled.

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Financial News (4)

Solvency indicator down in 2018

The solvency indicator, one of the most important figures tracked by the National Bank of Romania (BNR), dropped ended 2018 at 19.66%, after having fluctuated around 20% for the entire year. The indicator is far above the minimum EU level of 8%, well as above the BNR minimum level of 10%.

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Patria Bank (PBK) logged RON 495,000 in preliminary earnings for 2018

Patria Bank (PBK) logged preliminary earnings worth RON 495,000 for 2018, compared to a loss of RON 42.5 million in 2017. The net value of loans and down payments granted to clients by Patria Bank increased by 16% in 2018. Patria Bank is the result of the 2017 merger between Patria Bank and Banca Comerciala Carpatica.

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Banca Transilvania worst affected by Decree 114

Senator Florin Citu (PNL) spoke on the evening news about the negative impact of Decree 114 on the economy. The senator warned about the state of Banca Transilvania, CEC Bank and C.E. Oltenia. EBRD is a shareholder of Banca Transilvania and may sue over the losses incurred because of Decree 114.

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3M ROBOR rate up

The National Bank of Romania (BNR) posted a three-month ROBOR rate of 3.28%, up from 3.25% per year. The rate is used to calculate the adjustable interest rates of RON-denominated loans.

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Investment News (1)

Project to widen Timisoara-Mosnita Noua road

The Timis County Council launched a project worth more than EUR 7 million for the widening of the Timisoara-Mosnita Noua county road. The project is financed from the county budget and the National Program for Local Development (PNDL).

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Legislative News (2)

New mining act increases government power

The government will be able to issue orders declaring any mineral resource a national interest matter. The new draft mining act would allow the use of an expedited and simplified procedure to condemn land, without waiting for the owners' approval.

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Tax Code sent back to Parliament

President Iohannis sent the Tax Code bill back to the Parliament with a request to review, according to an official announcement from the Presidential Office. The official explanation is that the Tax Code had been amended by decree between the passing of the original bill and the signing procedure.

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Politics (2)

Suciu and Cuc appointed

President Klaus Iohannis signed on Thursday the decrees appointing Vasile-Daniel Suciu and Alexandru-Razvan Cuc as ministers of development and transport, respectively.

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PSD attacks President

The Social Democratic Party (PSD) criticized President Iohannis's decision to reject the appointment of new ministers of development and transport. According to the PSD, the president's opposition cost the country EUR 6.9 million per day.

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