Daily Newsletter - 22 January 2019


Macroeconomic News (4)

Decree 114 ruined banking sector's profile

Romania's currency exchange situation worsened on the map of the vulnerabilities plaguing the emerging economies produced by Capital Economics analysts before the depreciation of the national currency. The risk of major currency depreciation of emerging economies has declined, with a few exceptions: Argentina, the Philippines, Romania and Ukraine.


More than 9,180 people receive service pensions

The number of people receiving service pensions was 9,180 at the end of 2018, up slightly from the previous month, according to data centralized by the CNPP. Most of them were beneficiaries of Law 303/2004, which regulates the status of judges and prosecutors.


National industry increasingly dependent on multinationals

Foreign manufacturing companies generate over 60% of the added value produced by the sector in question. The multinationals present in Romania generated almost 44% of the gross added value in the economy in 2016 (the most recent year for which data are available), their contribution being relatively similar to 2014 (-0.6% in 2016 as compared to 2014)


Romania has highest deficit in EU

Romania reported the highest government deficit in the European Union for the third quarter of 2018, according to data released Monday by the European Statistics Bureau (Eurostat). In the euro area, the government deficit stood at 0.5% of GDP in the third quarter of 2018, up from a deficit of 0.3% of GDP in the previous three months.


Financial News (4)

Banks deposited more than RON 4 billion with BNR

Banks deposited RON 4.29 billion with the National Bank of Romania (BNR), three times lower compared to the RON 12.9 billion deposited last week. Analysts say the lower figure indicates a more cautious approach by the banks, as well as a drop in liquidity, as banks prepare to set up their mandatory provisions.


Banks suspend investment plans

The Decree 114, issued unexpectedly by the government in the final days of last year, has forced local banks to abandon previously planned investments, according to statements made by representatives of the banking sector and members of the Romanian Banking Association (ARB) at a press conference on Friday. Banca Transilvania and Banca Comerciala Romana (BCR) officials said they would be more careful about lending and rethink their investment plans.


Euro breaks through RON 4.7 threshold

The European currency has broken smoothly through the psychological threshold of RON 4.70, with a market average of RON 4.7081 per euro, announced by the National Bank of Romania (BNR). The market is in uncharted territory, where "all-time highs" are set one after the other.


Vasilescu (BNR): The statements regarding the Parliament hearing influenced the market

The depreciation of the national currency against the euro is less than RON 0.01, and these day to day changes cannot be the expression of movements in the economy, because they are caused by the interplay between demand and supply, said Adrian Vasilescu, a strategy consultant with the National Bank of Romania (BNR).


Legislative News (1)

Judges, prosecutors urge government to drop decree

The Judges' Forum of Romania (FJR), the "Movement to Defend the Status of Prosecutors" (MASP) and the Justice Initiative Association (AIJ) urged the government to drop the idea of issuing a decree allowing the retrying of appeals made to five-judge benches.


Politics (1)

PM Dancila writes President Iohannis, asks for appointments

Prime Minister Viorica Dancila wrote President Iohannis again, asking him to appoint Olguta Vasilescu and Mircea Draghici as ministers of development and transport.


Social (1)

Almost half of SME owners to lay off staff

Almost half of respondents to a survey conducted by the National Council for Small and Medium Sized Enterprises (CNIPMMR) have calculated that the minimum salary increase would force them to lay off employees. Every respondent has at least one employee on the minimum wage, and some business people have more than 10 such employees. 387 entrepreneurs took the survey.