News

Daily Newsletter - 3 January 2019

Summary

Macroeconomic News (3)

Energy consumption to go up 2.4% per year until 2022

The nation's final energy consumption is expected to increased by around 2.4% per year between 2019 and 2022, according to the Energy Balance Forecast released by the National Forecast Commission (CNP). The total consumption estimated for 2019 is 24.06 million tons of oil equivalent, up 2.4% from 2018.

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ONRC: Number of insolvencies down 6.5%

The number of companies and self-employed individuals (PFA) who declared insolvency was 7,716 between January 1 and November 30, 2018, down 6.54% compared to the corresponding period of 2017, according to data published by the National Office of the Trade Registry (ONRC). Most of the insolvent companies and PFAs were registered in Bucharest (1,514), down 16.68% from the corresponding period of 2017.

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Fuel, tobacco, beer and electricity prices up on January 1

This year's excises are growing more than stipulated by the Tax Code because they are pegged to the inflation rate. The increases will push up the prices of gasoline, cigarettes and alcohol. The gasoline excise will increase 3.15%, from RON 1,976 to RON 2,083 per 1,000 liters.

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Financial News (3)

Bankers content with 2018 results

The heads of the biggest banks in Romania are pleased with the financial results obtained in 2017 and in the first half of 2018. The recovery of the credit market, robust returns, good capitalization, increased prudence and improved portfolio quality, after unloading bad loans, are some of the characteristics that have marked Romanian banking lately in a slightly volatile fiscal, business and regulatory environment.

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RON to fall against euro

The EUR/RON exchange rate will increase over the next 12 months, compared to the current figure, to an average of RON 4.7427 per EUR, according to CFA Romania analysts. Over the next six months, over 83% of participants anticipate an average of RON 4.6991 per EUR. The projected inflation rate for the 12-month horizon (December 2019 - December 2018) averaged 4.23%.

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Major bank brand vanishes

In the spring of last year, Eurobank announced it was leaving the Romanian banking market, thus giving up more than one million customers of Bancpost. Banca Transilvania took over Bancpost in April, 2018, and became the owner of the majority stake (99.15%) owned by Eurobank Group, as well as the majority stakes held in ERB Retail Services IFN and ERB Leasing IFN. The merger became effective on December 31.

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Investment News (1)

Axa Trans Construct, Synergy Construction and Ecoterm announce new contracts

Construction companies have already begun to contract projects whose completion is announced for 2019 and 2020. Trans Construct Ax, a business owned by the Varlan family, is building the Colosseum Mall in northwest Bucharest, an investment of EUR 30 million. The company has so far built several Mega Image stores in the capital and it expects an EUR 8 million turnover for the year 2018.

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Politics (2)

Donald Tusk: "I wish Romania all the best with your first EU presidency"

Donald Tusk, President of the European Council, congratulated Romania on taking over the revolving presidency of the institution. "Happy New Year! I wish Romania all the best with your first EU presidency. I am confident you will deliver and look forward to working with you," wrote Tusk on Twitter.

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PSD demands end to ministry situation

PSD urged President Klaus Iohannis to put an end to the situation involving the Ministries of Development and Transport, saying that it deeply affects Romania's image at European level. "Romania is going to take over the presidency of the EU Council with an unfortunate blockage affecting two important ministries. We ask the President to put aside political vendettas and address this situation that deeply affects Romania's image at European level," is the message posted on the party's Facebook page.

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