Daily Newsletter - 23 May 2017


Macroeconomic News (3)

Eastern Europe's economic growth pace could slow down 

The Central and Eastern European economies are running near their potential and policy makers are increasingly on alert as inflation comes back. Capital Economics Ltd analysts warned that the region's growth pace could fall. "The 'Goldilocks' period of strong growth accompanied by low inflation which the region has enjoyed in recent years is now coming to an end," said Liam Carson, an analyst at Capital Economics in London. "It looks like 2017 could be the peak year for growth in Poland, Hungary and Romania."


Best and riskiest macroeconomic situation in 27 years 

Mugur Isarescu, Governor of the National Bank of Romania (BNR), has warned the banks about the risks posed by Romania's 'never better' macroeconomic situation. "I have never seen in 27 years a better macroeconomic situation, but it's also true that I haven't seen higher risks. This is not a contradiction, nor a conflict," said Isarescu.


EC warns Romania over structural deficit 

The European Commission advised Romania yesterday to return to a structural deficit of 1% of the GDP. "Based on the 2016 budget data, Romania has veered significantly from the course set by the medium-term objective," according to a document released by the EC.


Financial News (4)

Foreign entities eye Bancpost 

It seems that several foreign entities are eyeing Bancpost, the Greek-owned bank operating in Romania. Market sources say that one of these entities is the Abu Dhabi Investment Council, which is fully owned by the UAE. Two other entities are a Canadian investment funds and Varde Partners. Eurobank's Romanian subsidiary is also sought by OTP Bank, Banca Transilvania and Alpha Bank.


SME lending risk down 

The risk arising from lending to SMEs has dropped over the past years and the "market is cleaner" because many SMEs have folded since the financial crisis, according to Radu Gratian Ghetea, president of CEC Bank.


Isarescu: Lending must be come growth drive 

Romania's macroeconomic situation is very good, but the risks are also high because the fiscal and monetary stimulus measures are about to be exhausted, according to BNR Governor Isarescu. The Governor urged the banks to turn lending into the next economic growth drive.


BCR mobile banking service soars 

BCR reported an average of 10,000 new users of mobile banking services for every month of this year. The bank's application was downloaded more than 250,000 times in 2017, a threefold increase compared to 2014.


Investment News (1)

Comvex is building 200,000 tons cereal terminal 

Comvex, a company controlled by businessman Corneliu Idu and owner of the Constanta Port's sole ore terminal, is building a 200,000-ton cereal terminal with funds borrowed from Raiffeisen Bank and EximBank. The company has also secured state guarantees for this project. The two banks contributed equally to the EUR 33.6 million loan.


Legislative News (1)

ED 79/2016 passes 

The Chamber of Deputies' Judiciary Commission issued on Monday a report recommending the passing of an amended ED 79/2016. The decree stipulates that party leaders cannot be hospital managers, though party members can.


Politics (1)

Liviu Dragnea blasts Brussels

Liviu Dragnea accused the EU authorities of double standards on Monday. In response to the European Commission's warning about Romania's budget deficit, Dragnea pointed out that France and Spain are given a pass when it comes to deficits.