Daily Newsletter - 27 April 2017


Macroeconomic News (4)

Experts say EC will warn Romania over deficit 

The European Commission will certainly warn Romania about its high budget deficit, according to market experts. Eurostat announced on Monday that Romania's budget deficit for 2016 was 3%, despite the fact that EU members are supposed to stay below 3%.


Last year's deficit reached 3% of GDP 

The information regarding Romania's budget deficit for 2016, which includes cash deficits and payment commitments, surprised the authorities in Bucharest. Prime Minister Sorin Grindeanu accused his predecessor of running a high deficit "without doing anything" productive.


CFA Romania indicator falling 

The expectations of the more than 200 CFA analysts polled in Romania regarding the EUR/RON exchange rate are at a four-year low. The median value for the next six months was RON 4.5685 per EUR, up 185 pips from February.


Industrial activity pace up in March 

Solid foreign orders spurred the industry forward in March and the national production surged to a 12-month high, according to the industrial barometer published by IRSOP and SNSPA. The industry accounts for approximately 23% of the country's GDP.


Financial News (4)

Investors traded BT shares worth RON 17 million 

Almost half of all BVB trading was accounted for by Banca Transilvania shares on the day the bank posted RON 246.2 million in first quarter earnings, up 7.7% on an annual basis. The bank's market capitalization is RON 10.01 billion, 14% above BCR's.


Isarescu: Loans must be repaid 

Those who borrow need to know that loans must be repaid and that it's our purchases that enslave us, not the banks, according to Mugur Isarescu, Governor of the National Bank of Romania (BNR).


BCC-Patria Bank merger to become effective on May 1 

Banca Comercial─â Carpatica and Patria Bank confirmed the implementation of their merger program, beginning with May 1, following the completion of all the required procedures. The clients were notified today of the upcoming merger.


Mortgages displaced consumer loans 

The aggregated value of consumer loans contracted during the economic crisis, falling to the lowest point in a decade. Meanwhile, mortgages surged 5.5-fold between 2007 and 2017 and account today for more than half of all retail borrowing, according to the National Bank of Romania (BNR).


Investment News (1)

OMV Petrom has a EUR 1 billion investment program for every year of the next five 

OMV Petrom has EUR 1 billion investment program for this year, up 83% compared to 2016. The investment budget was approved on Tuesday by the company's shareholders gathered in a regular meeting. The main investment destination continues to be the Upstream division.


Legislative News (1)

Minister of Justice ignores Dragnea's pressure 

The Minister of Justice has once again postponed the delivery of the criminal code modification package in order to conduct a thorough assessment of the modifications' impact. The Minister also spoke about a "wide-ranging public consultation process".


Politics (1)

Dragnea defiant 

Liviu Dragnea, leader of the Social Democratic Party (PSD) and president of the Chamber of Deputies, stated on Wednesday that the courts which had handled his case could not sentence him on election fraud, despite "all the pressure" put on them.