Daily Newsletter - 27 October 2017


Macroeconomic News (4)

IN NINE MONTHS Budget deficit fell at 0.81% of GDP 

The European commissioner Gunther Oettinger, in charge of the budget and human resources, stated today, after the meeting with the members of the parliamentary budget-finance commissions, that, in his opinion, there are premises for Romania to fall under the 3% budget deficit target, both this year and in 2018.


Isarescu: Stimulating consumption in the period when it grows without macroeconomic policies does not help closing the gaps 

Romania's intention to catch up with other EU member states is not helped by stimulating consumption in the period when it grows without supporting macroeconomic policies, provided that the sustainable strategies, necessary for a constant development, are anti-cyclical, not pro-cyclical, the governor of the National Bank of Romania (NBR), Mugur Isarescu, stated Thursday within the conference on "10 years since Romania's accession to the European Union", in which the Romanian president, Klaus Iohannis, and the European commissioner, Gunther Oettinger, also participated.


Government announces the transfer of contributions to employees. Firms will pay "an insurance contribution for work" of 2.25%. It was about a "solidarity tax" of 2% initially 

The social contributions system will be amended earlier next year for transferring the social contributions paid by the employer for the employee at present in an increased gross wage of the employee. Contributions will be deducted and transferred to the state, like up to now, by the employer, according to an announcement made today by the Government. Thus, out of a total of 39.25% (employer+employee) of the gross wage at present, contributions will account for 37.25% of the gross wage as of next year.


CFA Romania/Confidence in the Romanian economy lowered in September, for the fourth month in a row 

CFA Romania's macroeconomic confidence indicator, calculated basing on the estimations of the organization's members, decreased by 5.3 points compared to the previous month, at 45.4 points, notably as a result of the worsened perception on how the economy will evolve next year, the data published by CFA show.


Financial News (3)

A day of respite for Romanians with loans: 3-month Robor is decreasing slightly today, at 1.87%, while 6-month index is stagnating at 2.04% 

3-month Robor index, used in calculating the cost of loans in lei with variable interest, decreased at 1.87%, Thursday morning, after it had climbed to 1.88% Wednesday, level last reached in November 2014, while 6-month Robor stagnated at 2.04%. 6-month Robor index, used notably in calculating the interest of mortgage loans in lei, jumped over the 2% threshold last Thursday, a similar level being last recorded in January 2015, according to NBR data.


Before selling Bancpost, the Greek group Eurobank borrows half a billion euros by selling bonds 

The Greek group Eurobank, Bancpost owner, bank in top 10 on the Romanian market in assets, has borrowed 500m euros by selling covered bonds. The transaction has attracted institutional investors' interest from 20 countries, the offer being oversubscribed twice. Eurobank negotiates with Banca Transilvania for selling Bancpost, bank present in Romania for 25 years and ranking 9th in assets later last year.


Attention to installments! The first four banks of the system sold the loans that had marked up the most 

Be it about mortgage loans, personal loans in some cases or just about variable interest applied after 5 years of fixed interest, the first four banks of the banking system work with the reference index 6-month Robor. According to the counts performed by a credit institution, the installments of the loans with 6-month Robor-related interest rose more than those with 3-month Robor-related interest.


Investment News (1)

Alka builds a new factory of biscuits and snacks in Romania, in Ploiesti, inclusively with public aid 

The sweets manufacturer Alka, founded by the Israeli businessman Amir Krenzia, who holds the entire stake of the company, will build a new factory of biscuits and salty snacks in Ploiesti, an about 11.5m euros investment, out of which about 3.5m euros from private co-funding and approximately 2.4m euros from public grant. Today, the group holds a factory in Bucharest.


Legislative News (2)

Government discusses a draft GEO reducing the contribution to Pillar II from 5.1% to 3.7%, in first reading 

The Government discusses a draft emergency ordinance reducing the contribution to Pillar II from 5.1% to 3.7%, as of next year, in first reading in Thursday's session, the labor minister, Olguta Vasilescu, contending that the nominal value of the contribution will not decrease.


The Supreme Court asks the Parliament to send back to the Ministry of Justice the draft law on judicial reform 

The High Court of Cassation and Justice asks the Parliament to send back to the Ministry of Justice the draft law amending the justice laws, because the regulations on the elaboration and adoption of normative acts was not observed.