News

Daily Newsletter - 3 May 2019

Summary

Macroeconomic News (3)

Budget deficit up

The government spent almost RON 5.48 billion more than it collected in taxes and ended with a budget deficit of 0.54% of the GDP for the first quarter of this year, according to the data released by the Ministry of Finance (MFP) on Thursday. Investment dropped more than 20% compared to the first quarter of the previous year.

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MFP begins BND establishing procedure

The Ministry of Finance (MFP) has launched the procedure for establishing the National Development Bank (BND), a project benefiting from the help of the European Commission through the Structural Reform Support Service. The first two components of this project have been completed so far, according to a report from the National Strategy and Forecast Commission (CNSP).

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Loans worth EUR 1.4 million granted under EIF deal

The banks selected for the farmer credit program financed under an agreement between the Ministry of Agriculture and Rural Development (MADR) and the European Investment Fund had granted loans worth EUR 1.4 million by the end of March. The five banks selected for this program are Banca Comercial─â Romana, Libra Internet Bank, ProCredit Bank, Raiffeisen Bank and UniCredit Bank.

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Financial News (5)

IRCC is 1 pp lower than ROBOR

The National Bank of Romania (BNR) published for the first time the value of the IRCC index (the reference index for consumer loans). The 2.36% figure is lower than the three-month ROBOR rate, the most common benchmark for retail loans. The three-month ROBOR announced on Thursday was 3.17%.

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IRCC index to apply to Prima Casa loans

The Finance Ministry announced that the IRCC would also be used for Prima Casa, Prima Masina and Invest in Yourself loans. The new IRCC index is based on the actual transactions made on the interbank market in Q4, 2018.

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NPL rate fell to 4.82%

The banks continued to unload bad loans. The average NPL rate of the national banking system dropped to 4.82% at the end of February, compared to 4.95% at the end of 2018, according to the National Bank of Romania (BNR).

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BNR currency reserves up EUR 1.6 billion in April

The foreign currency reserves of the National Bank of Romania (BNR) reached EUR 33.69 billion in April, up EUR 1.6 billion from the previous month. April inflows amounted to EUR 3.52 billion, representing the adjustment of the minimum mandatory reserves set up by banks, as well as transfers to the Ministry of Finance accounts.

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Vasilescu said inflation created disturbances that pushed ROBOR out

The inflation caused disturbances in the public life, which led to the demise of the ROBOR rate and the creation of a new reference rate for loans (IRRC), according to Adrian Vasilescu, a strategy adviser with the National Bank of Romania (BNR). Vasilescu added that the new quarterly reference rate would take inflation into the account.

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Legislative News (1)

President signs bill increasing child rearing aid

President Klaus Iohannis signed into law Decree 111/2010 that increases the child rearing aid paid monthly to low income mothers who have another child within 12 month from their maternity leaves.

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Politics (2)

PM Dancila took part in International March of the Living

Prime Minister Viorica Dancila took part in Poland to the International March of the Living on Thursday. The PM walked the route between Auschwitz and Birkenau in memory of the Balkans and Eastern European Jews who died in the Holocaust.

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President Iohannis urges Romanians to vote in referendum

President Klaus Iohannis posted on his official Facebook page a new profile photo and the message: "Decide For Your Future! Vote!". The message urges Romanians to vote in the judiciary referendum on May 26.

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Social (2)

80% of Rabla Program budget spent

Dorin Corches, Vice-President of the Environment Fund Administration (AFM), said in Bistrita, on Thursday, that 80% of the Rabla Program's budget for this year has already been spent and that a second session would be launched later this year. "There will certainly be a second session because we want to reach at least the same number of cars as last year, which was 50,000," said Corches.

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Romania ranks third in EU school drop out index

Romania had in 2018 the third highest number of early school dropouts in the European Union. 16.4% of young Romanians, between the ages of 18 and 24, were registered as early dropouts.

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