News

Daily Newsletter - 4 April 2019

Summary

Macroeconomic News (4)

Bucharest budget

The Bucharest City Hall (PMB) has published the 2019 budget. More than EUR 370 million were allocated for infrastructure and transport modernization, while EUR 85 million will go to healthcare, EUR 38 million to consolidation works and EUR 128 million to social assistance.

Top

Cabinet to approve pig and bee programs

The Cabinet will issue two orders approving the granting of subsidies to pig farmers and beekeepers, according to Prime Minister Viorica Dancila. The Ministry of Agriculture will allocate RON 4.6 million to supporting farmers raise Bazna and Mangalita pigs.

Top

Microenterprises account for 10% of national business

More than half a million of microenterprises operated in Romania in 2017. These companies with turnovers below EUR 500,000 per year employed a total of 1.1 million individuals and logged consolidated profits worth RON 28 billion, according to a survey by Instant Factoring.

Top

Romanian retail sector keeps expanding

Local retail sales showed the third highest growth rate in the European Union in February, according to Eurostat data. Retail sales jumped 9.1% on an annual basis and 1.1 on a monthly basis. The annualized growth rate was almost three times higher compared to the EU average.

Top

Financial News (3)

Banca Transilvania stock at new high

Banca Transilvania, the most traded stock of the Romanian market, closed at a 2019 high on Wednesday evening. Yesterday, the bank's shares gained 0.7%, which indicates a solid recovery from the crash of December, 2018. This month, the bank's shareholders will gather to vote on a dividend yield of around 7%, plus one free share for every 12 held.

Top

BNR concerned about current account deficit

The National Bank of Romania (BNR) is concerned about the current account deficit, according to statements made by Governor Mugur Isarescu during a press conference. "Together with the deteriorating primary revenue balance, the net export trend has led to a significant worsening of the current account deficit, compared to the corresponding period of the previous year," said Isarescu.

Top

Court strikes down Bancpost decision

The Second District Court sided with Banca Transilvania, the new owner of Bancpost, in a lawsuit regarding the decision of the National Consumer Protection Authority (ANPC) to punish Bancpost for selling 63,000 loans to a company based in Netherlands. The ruling can be appealed.

Top

Investment News (1)

Mangalia authorities to repair 17 streets

The local authorities in Mangalia signed a financing deal worth EUR 7 million with the European Union in order to rehabilitate 17 streets. The deal was signed at the Regional Cross-border Cooperation Bureau (BRCT) on Wednesday. The rehabilitation project is part of a Romanian-Bulgarian cooperation program.

Top

Politics (2)

ALDE fights own political group

ALDE Romania launched a scathing attack on Guy Verhofstadt, leader of the ALDE group in the European Parliament. Verhofstadt had asked that ALDE Romania be excluded from the European group. "Guy Verhofstadt's attitude causes concern, sadness and, above all, surprise. This request from Mr. Verhofstadt is based on his continuous refusal to see the situation in Romania, despite numerous chances to be informed by all sides, including the Romanian authorities," according to the ALDE press release.

Top

Dancila surprised by Timmermans statement

Prime Minister Viorica Dancila said at the beginning of Wednesday's Cabinet meeting that she was surprised by the statements made by EC First Vice-President Frans Timmermans. The PM thinks the statements had caused confusion and that she would request an exlanation. She also responded to criticism from 12 embassies, saying she had tried to talk with the ambassadors, which proved impossible, and asked them to show respect for Romania. Dancila blamed what she called an "unpleasant" situation on President Klaus Iohannis's repeated statements on justice.

Top

Social (1)

State subsidy for computers

The Minister of Education, Ecaterina Andronescu, announced that the Cabinet had approved the granting of a EUR 200 subsidy to students who want to buy computers. The program has been active since 2004 and the number of successful applicants has exceeded 300,000.

Top