News

Daily Newsletter - 4 November 2019

Summary

Macroeconomic News (2)

African swine fever rocks national sector

The African swine fever has rocked Romania's pig farmers, but the side effects have the meat processing industry scared. Only 5% of the national pork production will be processed this year, according to statements made by Dana Tanase, Executive Director of the Romanian Meat Association (ARC), at a conference hosted by the Indagra 2019 fair.

Top

Ongoing SME financing contracts worth EUR 1.4 billion

The total value of the ongoing financing deals involving microenterprises and small companies located in urban areas, as well as medium-sized companies located in rural areas stands as EUR 1.4 billion, according to Roxana Manzatu, interim Minister of European Funds.

Top

Financial News (4)

Low average income is biggest issue

The low average income per capita is the biggest issue regarding Romania's real convergence in view of Eurozone accession, despite the fact that this is not a formal accession criterion, according to the European Central Bank.

Top

BNR foreign currency reserves down in October

The National Bank of Romania (BNR) announced that its foreign currency reserves dropped from EUR 35.4 billion to EUR 34.9 billion at the end of October, compared to the previous month. The gold reserves stayed at 103.6 tons worth EUR 4.49 billion.

Top

Three quarters of Romanian wealth is real estate

The European Union wants to reverse the proportions in which the banking system and the capital markets support financial intermediation, in an attempt to get closer to the American model. This target will be difficult to reach with a population that's more risk averse and prefers to hold its assets in real estate or liquid financial assets such as bank deposits or cash. The Europeans' preference for real estate assets is even stronger in the case of Romanians, with over 76.4% of household assets being real estate.

Top

Estimated financial situation

The size of the critical indicator imbalance will certainly increase by the end of this year, especially given the uncertainty of the political situation, because it increases the difficulty of making estimates. The latest estimates put the budget deficit at 4%. The current account deficit is estimated at more than 5% of GDP, as a result of tensions induced by the policy of stimulating consumption through imports, under conditions of insufficient direct foreign investments and European funds.

Top

Investment News (1)

Highway financing contract to be signed in November

The Sibiu-Pitesti Highway project was recently sent to the European Commission for approval, while the financing contract will be signed this month, according to Roxana Manzatu, the interim Minister of European Funds. Crews are already at work in the Sibiu-Boita sector of the highway.

Top

Legislative News (1)

Ionut Dumitru: New pension law is 5% of GDP

The new pension law will increase pension spending from 9% to 14% of the GDP by 2022, according to Ionut Dumitru, former president of the Fiscal Council. "Any economist would say that the budget cannot cope with this at the current tax level, spending level and poor collection rate," said Dumitru.

Top

Politics (2)

Dancila: There's no way we won't go to runoff

Viorica Dancila, the outgoing prime minister and PSD's presidential candidate, stated in Focsani, on Sunday, that the option of not going into the runoff election does not exist for her. Dancila added that she is the only true competition to Klaus Werner Iohannis.

Top

Iohannis: Romania is a country where thieves stay in jail

President Klaus Iohannis spoke to liberal women at a gala held on Sunday, describing a normal country where politicians seek office in order to address the society's problems, instead of addressing their own, often criminal, problems.

Top

Social (1)

National campaign against irrational use of antibiotics

Romania ranks second in the European Union for the irrational use of antibiotics. The Federation of Pharmacy Student Associations of Romania (FASFR) has issued a warning by launching a National Antibiotics Campaign.

Top