Daily Newsletter
28 May 2019
Summary
Macroeconomic News (4) |
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CRBE: 190,000 sqm of additional mall space
Romania will gain an additional 190,000 sqm of shopping center space this year, most of which will be located in regional cities, according to a study by real estate advisory firm CRBE. Moreover, 18% of the new space will come from expansions of existing malls. Top |
A delegation of International Monetary Fund experts led by Head of Mission Jaewoo Lee will be in Bucharest between May 27 and June 7 for what is known as an Article 4 Consultation. The delegation will meet with officials from the Ministry of Public Finance, the National Bank of Romania (BNR) and other government agencies, as well as representatives of the private sector and non-government organizations. Top |
Cabinet prepares for budget adjustment
The Cabinet is laying the groundwork for ruling via decree during the Parliament's summer recess, when the Cabinet wants to make the first adjustment of the state budget this year. Top |
MFP borrowed RON 746.7 million
The Ministry of Finance borrowed RON 746.7 million from the commercial banks through an issue of state bonds maturing in 49 months and carrying an average yield of 4.33% per year. The nominal value of the issue was RON 500 million, while the banks offered a total of RON 1.14 billion. A supplementary auction is scheduled for today. Top |
Financial News (4) |
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Private borrowing up 1.6% in April
Private borrowing denominated in foreign currencies rose 1.6% in April, compared to the corresponding month of 2018, driven by a 10.4% surge in corporate foreign currency loans. There was an increase of only 0.6% in private sector borrowing in April, compared to March, according to BNR data. The annualized growth rate was 7.6%. Top |
Retail and corporate deposits saw the highest growth rate this year in April: 9.9%. Almost two-thirds of deposits, the equivalent of RON 222 billion, are denominated in the national currency. Deposits in local currency rose 7.2% over the past year. On the other hand, foreign currency deposits grew twice faster: 15.5%. Top |
Non-government borrowing up 0.6% in April
Non-government borrowing increased by 0.6% in April, compared to the previous month, reaching a total of RON 256.54 billion. RON-denominated borrowing expanded 1%, while foreign currency borrowing contracted 0.1%, according to the National Bank of Romania (BNR). Government borrowing fell 2.5% on a monthly basis, down to RON 100.8 billion. Top |
Top six banks to pay EUR 100 million in asset tax
The top six banks of the national market will pay around EUR 100 million in asset tax for this year. The earnings posted by the banks for the first quarter of this year is much lower compared to 2018, while some banks even reported drops in asset worth. Raiffeisen and BRD saw their earnings fall, while ING Bank and BCR logged modest gains. Top |
Politics (2) |
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Prime Minister Viorica Dancila said on Sunday evening that she would not resign because Romanians trust the current Cabinet and pointed out that the opposition parties can submit a motion of censure. Later, in a television interview, Dancila admitted that it's "hard to say" if a motion is likely to pass, but added that she is confident it would not. Top |
President Iohannis floats PSD-2020 Alliance cooperation
President Klaus Iohannis interpreted the results of the referendum and the European Parliament election as the perfect time for the National Liberal Party (PNL) and the 2020 Alliance to discuss an agreement that would provide an alternative to the "bankrupt rule of the PSD". Top |
Social (1) |
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More than 50,000 unemployed under 30
The number of young unemployed has dropped by half over the past five years, while the number of unemployed under 30 years of age has fallen almost fourfold. A total of 51,319 unemployed (18% of the 288,896 unemployed registered in Romania at the end of 2018) are below the age of 30, according to data published by the Ministry of Labor, based on information from the National Workforce Employment Agency (ANOFM). Top |